CHEAPER INTERNET FOR MALAYSIANS?
Telcos should form consortium for infrastructure spending, says IDC Asean
LOCAL telecommunication companies (telcos) have been urged to take a different measure in making the idea of cheaper broadband and wider Internet access a reality.
A research firm said Malaysians might finally see the idea materialise if the telcos form a consortium for infrastructure spending push rather than taking up a big investment individually.
The move might also not require major government’s intervention to fund the Internet infrastructure developments or upgrades, said IDC Asean managing director Sudev Bangah.
The government’s promise to double the existing Internet speed for half of the current price has yet to be fulfilled due to the telcos’ reluctance to forgo their profit margins and the government’s budget constraint, as it requires high spending on hardware, software and infrastructure upgrades.
However, the government has said it remains committed to providing a “win-win” solution to the telcos and consumers.
Sudev said forming a consortium among telecommunications players might be a win-win solution to all — the telcos, the government and consumers.
“This (the idea) has been done by other countries, such as the Philippines and Indonesia. Local telcos would come together and form a consortium to spread out Internet access.
“In fact, in those countries, all of them sat down and signed a memorandum of understanding for the betterment of the nation,” he said.
Sudev said Malaysia, ranked among the top countries with expensive broadband access, could also solve the issue by opening up the market to foreign telcos.
“Bringing in foreign telcos would create healthy competition in the market.
“For example, in Indonesia, the government provides preferred investment initiatives to foreign telcos that want to come in, build up networks and put a lot of money there,” he added.