Why penalise short term users?

IT is an age-old adage that in a fast-changing world, those who hesitate or cling to the old ways of doing business will be left behind.

Today, many of us are very dependent on Internet accessibility and many business establishments, recognising the impact of the evolution of communication, even provide free Wi-Fi to customers to lure them to their outlets.

In Malaysia, if you are interested in having an Internet line at home, you can have it provided you sign up for a minimum period of one year.

That is exactly what I was told when I approached a telecommunication line provider.

My other option for a short-term broadband access was to purchase a prepaid broadband card from their competitors.

For this, I would have to pay RM60 for a 365-day SIM card with one gigabyte of data and to top up regularly at RM30 for two gigabytes, which would be finished in a day or two with the hours I surf the Internet.

What is very puzzling is the business sense of having to sign up for a minimum period of a year when large Internet providers in developed countries are now going in the other direction, with no lock-up period to tap short-term visitors.

These large corporations overseas have realised that any variable income would positively add to their profits.

If I were to be asked how to improve the bottom line of, for example, Telekom Malaysia, I would strongly advise them to change this one-year minimum sign-up period.

Short-term subscribers for a minimum of one month will positively add to their profit at almost 100% of the subscription value as there is no further cost for the broadband transmission.

There is no negative downside. The subscriber pays for the installation up front.

Telekom Malaysia can take a deposit for the broadband modem or sell the modem outright.

Can someone shed any rational light on this minimum one-year broadband subscription period, please?