More private sector investment needed to boost fibre infrastructure

PUTRAJAYA: More investment in fibre infrastructure from the private sector is needed to support the digital economy and provide high-speed broadband at lower prices, Communications and Multimedia Minister Datuk Seri Salleh Said Keruak said.

The Minister said that the government’s initiative in expanding the existing fibre networks through the Nationwide Fiberisation Plan (NFP) would, among others, leverage Tenaga Nasional Bhd’s (TNB) extensive fibre trunk network.

For the TNB fibre, participation in the NFP is subject to interested parties entering into appropriate commercial arrangements with TNB for the use of their fibre.

“Ultimately, we want more private sector entities to come into the broadband market and invest. We do not encourage monopolies or exclusive arrangements as this may slow down the deployment of broadband infrastructure.

“More competition will mean more choices for consumers and the government’s aim of lowering broadband prices will be achieved,” Salleh told Bernama after attending the weekly Cabinet meeting yesterday.

A successful digital economy is dependent on the wide availability of high- speed broadband, including in rural areas and for this, more fibre infrastructure has to be deployed.

Broadnet Network Sdn Bhd, which holds the relevant Communications and Multimedia Act 1998 licences, is among the parties that have expressed interest to work with TNB on a commercial basis for the NFP.

Salleh said the public-private partnership ( PPP) approach taken for the NFP would not necessarily involve additional funding from the government.

The PPP arrangement is meant to enable the government to give assistance when facilitation is required to ensure fast and efficient deployment of fibre infrastructure.

Hence, any proposals from companies to invest on their own are welcomed as there ought to be more investments from the private sector to boost the nation’s fibre infrastructure.

“In addition, what is also encouraging to the government is the interest shown by private sector entities such as Broadnet to invest and collaborate with TNB through a commercial leasing arrangement, thereby promoting a more competitive environment within the wholesale broadband market,” Salleh said.