The beginning of a fibre war on access

AFTER years of owning one of the biggest fibre networks in the country, Tenaga Nasional Bhd (TNB) has put its network to test so that it can be considered a serious player providing broadband access in the country.

The trial, which runs till year-end, would involve 1,100 homes in three areas in Jasin in Melaka.

This means more people will have access to fast broadband services, especially in areas where there is no access now. By yearend, TNB would be able to compete alongside or head on with incumbent Telekom Malaysia Bhd (TM).

It’s about time a new player enters the space to provide high-speed broadband (HSBB) network access to players, and hopefully with competition, this will drive Internet and broadband prices down, more people will get connected and the quality of service will improve.

Competition is lacking in the broadband access networks and retail segment.

This should encourage more players to provide broadband services at retail levels. As it is, Maxis Bhd is riding on TM’s HSBB to offer services, while Time dotCom Bhd has its own network. Axiata Group Bhd is keen and it should be a formidable player in the country since it has not just the financial resources, but also the ability to do it.

The entry of TNB also sees two government-linked companies offering the same kind of service and this tells a lot about Khazanah Nasional Bhd under the new government. Khazanah has a significant stake in both TM and TNB.

The new government has also chided the previous management of Khazanah for crowding out the private sector, but now, even though it is the same parent, the goals are different. Hopefully, it will infuse some competition.

Nobody knows if TNB can make money from its venture into the fibre-Internet-broadband space, but it certainly will push TM to be more efficient and work towards widening its reach in the sector. The push to have more players at both the access and retail level can only benefit the people of Malaysia.

Since Maxis introduced its new broadband pricing, TM has also brought its packages down to RM129 for 100Mbps and opened up its RM79 package to all instead of those in the B40 bracket.