BROADBAND PRICES TO DROP 25PC BY YEAR END
This is due to enforcement of MSAP, says minister
THE prices of fixed broadband are expected to be lowered by at least 25 per cent by the end of the year, said Communications and Multimedia Minister Gobind Singh Deo.
He said this was following the implementation of the Mandatory Standard on Access Pricing (MSAP) enforced on June 8.
“Relevant parties are in commercial discussions to finalise the wholesale prices.
“The process is scheduled to be concluded next month or in August, after which lower-priced broadband packages will be rolled out to consumers,” he said here yesterday.
He said the Malaysian Communications and Multimedia Commission (MCMC) had last year conducted a review of MSAP and the revised prices were to be introduced on Jan 1.
“However, the revised prices were not implemented as Telekom Malaysia (TM) had appealed to MCMC to reconsider the position of some pricing components.
“The decision to review the broadband prices was then put on hold, pending consideration by the minister at that time.
“I have instructed MCMC to consider other options that will further reduce the prices of broadband and to monitor the service.
“This to ensure that affordable starter packages are offered to consumers.”
He said the ministry would conduct an independent audit on two funds under the supervision of MCMC: MCMC fund and the Universal Service Provision (USP) fund.
“According to MCMC financial statements, the first fund has RM800 million, while the USP fund has RM8.5 billion.”
He said the decision was made after receiving inquiries on the distribution and spending of the funds.
The audit, he said, would be able to verify the amount and determine whether the spending of the funds was done in a transparent manner.
“The MCMC fund was established for the commission’s usage, in accordance with the Communications and Multimedia Act 1998, while the USP fund, which is also managed by MCMC, is aimed at closing the digital gap between rural sites and areas with limited Internet access.
“It is carried out through infrastructure projects and telecommunication companies are required to contribute to the fund.
“The audit is expected to address the weaknesses in the funds’ expenditure and problems related to awarding of project tenders.”