Comments on: Is Telekom Malaysia trying to kill REDtone?

By: shariff.rahman

shariff.rahman — Wed, 26 Nov 2008 05:25:56 +0000

HSBB is designed not for TM to monopolize broadband (BB) business. TM role is more on providing BB infrastructure, lease the infrastructure on wholesale basis to any company wanted to provide BB services. If customers need BB service from Maxis on the HSBB for example, it is TM obligation to install a new CPE in customer premise and let them connect to Maxis.

All the while, anyone can be ISP. If you think last mile access fees is not competitive then try invest your own last mile network then you know it is not easy to “serve people needs”.. or be a little more creative by deploying wireless local loop in unlicensed band, a wireless LAN with properly configured channel will do the job.

The BB business opening up to competition, at least in the wireless segment. TM does not own a wimax license, nor a 3G license but never heard TM shouting it is unfair/uncompetitive. After a year, there is no comprehensive wimax roll out yet, with P1 only covering limited area of Klang Valley at horrible fees structure – like RM230/month for 2.3Mbps best effort!

By: monsterball

monsterball — Fri, 14 Nov 2008 01:13:11 +0000

But M…is suffering from a brain disease…for sure!

By: monsterball

monsterball — Thu, 13 Nov 2008 14:50:36 +0000

I am not hinting M is suffering from syphilis…impossible.
I am saying…watch out to those crazy nuts in parliaments….blaring out…like a choo choo train…to quickly sit down…as body is itchy.

By: monsterball

monsterball — Thu, 13 Nov 2008 14:46:16 +0000

Oppositions are questioning….why award to Telikom only….and UMNO guy….talk of the important reasons why such a broadband need to be set up….saying we are far behind…..developing countries around us.
It is waste of time to listen to this….as UMNO must have as many multi billion projects..with companies own by them….directly or indirectly…to keep milking our money away for their agendas..consisting of party interest….personal..and spread out to few friends.
UMNO party is corrupted to the core..so said their respected old guard…Tengku Ahamad Rithauddeen….strangely confirmed by Mahathir…saying it started 30 years ago…blaming everyone corrupted…..except himself!!
They say….if a person suffers from syphilis disease…the signs are…getting crazy…and talking nonsense.
Be prepared for the unexpected!!

By: born_malaysian

born_malaysian — Thu, 13 Nov 2008 09:00:11 +0000

Cintanegara.. You never reply what people said about TM.. what you are saying is all about race and religion.. can you talk something about what’s happening in our country and what’s best for us in the future?

A monopoly in the ICT industry is never never good.. lets face it..

By: cintanegara

cintanegara — Thu, 13 Nov 2008 06:03:52 +0000

and also Kadazan Dusun, Sikh (i.e Dato DJ Dave) who had joined UMNO.

By: cintanegara

cintanegara — Thu, 13 Nov 2008 05:56:37 +0000

Yes, there are few Malay puppets in DAP and quite number of non Malays (Mamak) in UMNO. Does that answer your question?

By: lbl

lbl — Thu, 13 Nov 2008 05:51:23 +0000

Hi cintanegara,
A complete waste of time.Majority of non-Malays does not support UMNO as they just represent a particular community not entire Malaysian.
Is there a difference between UMNO and DAP?
DAP has a few Malay members, does UMNO have any non-Malay members?

By: taiking

taiking — Thu, 13 Nov 2008 05:15:55 +0000

What a monopoly and suffering losses?
Someone here said myanmar could one day surpass us in ICT.
I would not be surprised.
Burmese are one enterprising lot.
Indonesians come here and work as house maids, construction workers and factory workers.
Burmese come here and operate little shops, restaurants and other small businesses in the heart of KL (not small towns). And often they are brave enough to take on the whole shop lot and not just half a shoplot. And Burmese could speak english. This last point would in fact put them in a postion of advantage compared to local malays who could hardly utter a complete sentence in english.

By: k1980

k1980 — Thu, 13 Nov 2008 04:36:08 +0000

We are letting the monkeys run the zoo, and the lunatics run the asylum. Just because 51% of the voters put their trust in BN on 3.8.08

By: sonJa_iNC

sonJa_iNC — Thu, 13 Nov 2008 04:05:30 +0000

chengho: TM is the best? that’s the first ever nice comment about them that I’ve heard in my life! They are ‘the best’ because they have no real competition. Trapped in a monopoly, even the worst service provider would be deemed ‘the best’ because there are no other service providers to compare them with!

And getting a maximum of 300kbps when you’re paying more than a hundred ringgit for a 2Mbps connection is a rip-off. That goes to Maxis’ and Celcom’s HSDPA as well. 3.6Mbps? More like 500kbps. But everything comes with a clause; best effort basis lah, ya? Pathetic.

By: dawsheng

dawsheng — Thu, 13 Nov 2008 03:47:29 +0000

cintanegara, you are right.

By: 7even Sins

7even Sins — Thu, 13 Nov 2008 03:28:10 +0000

This is the failure of the goons of the ruling suckers. Wanted to have everything and monopolize everything but not able to delivery anything. These goons just not cut out to compete in anything at all but merely hide behind politics to get things done. Well they are infamous with that.

By: cintanegara

cintanegara — Thu, 13 Nov 2008 02:08:50 +0000

A complete waste of time. Majority of young Malaysian does not support DAP as they just represent a particular community not entire Malaysian.

By: dawsheng

dawsheng — Thu, 13 Nov 2008 02:01:09 +0000

I think there’s no time to waste, DAP should set up a committee specifically to urge young Malaysians to register as voters and vote in the coming general election. You gotta make it a priority and it have to start now or else it will be too late.

By: ktak

ktak — Thu, 13 Nov 2008 01:56:49 +0000

Perhaps Malaysia can learn from Singapore on this matter. Separate the ownership of the HSBB infrastrucure/assets and HSBB service providers. This will allow more competitions among HSBB service providers and ultimately consumers will benefit from this.

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_282849.html
Home > Breaking News > Singapore > Story
Sep 26, 2008

OpenNet wins broadband bid

The consortium comprises Axia NetMedia, Singapore Telecommunications, Singapore Press Holdings, and SP Telecommunications.

By Chua Hian Hou

The consortium, OpenNet, will operate an islandwide network offering every home and office Internet speeds of up to 1Gbps completed by 2010. — ST PHOTO: NG SOR LUAN

A CONSORTIUM comprising Canada’s Axia NetMedia, SingTel, Singapore Press Holdings and SP Telecommunications, has won a hotly-contested bid to build Singapore’s next-generation high-speed broadband network.

The consortium, OpenNet, will design and build an islandwide network offering 95 per cent of homes and offices Internet speeds of up to 1Gbps by June 2012.

At speeds 10 times faster than what is available today, the network will make it possible to roll out new services that require ultra-high-speeds like virtual-reality 3D games or high-definition video-conferencing services.

Users in large households can also enjoy a smoother Internet access with the enlarged pipe.

OpenNet’s win over rival consortium Infinity, comprising StarHub, MobileOne and the Qatar Investment Authority, was announced on Friday by Minister for Information, Communications and the Arts Dr Lee Boon Yang.

‘For Singapore to remain competitive in the globalised and digital economy, we need to make careful and timely investments in our key economic infrastructure, including our infocomm infrastructure,? said Dr Lee.

Singapore’s government will fund as much as S$750 million for the OpenNet group to build the fiber-optic network.

OpenNet will offer wholesale prices of $15 a month for home users and $50 a month for commercial users, said a statement from the consortium.

During the construction and commissioning phase, OpenNet estimates its costs to be about S$1 billion. The group expects to spend S$1 billion to S$2 billion over the 25-year licence period for access to infrastructure.

OpenNet forecasts its shareholder investment requirements to be in the range of S$120 million to S$160 million, which will be required during the construction and commissioning phase.

Mr Art Price, Chairman and CEO, Axia NetMedia, said, ‘OpenNet’s approach is future proof with no compromises from either the technology or business structure perspectives.’

Mr Allen Lew, SingTel’s CEO Singapore, said ‘The compelling proposal is a result of the strengths of each consortium partner, such as SingTel’s extensive high-quality network of ducts, technical expertise and our considerable experience in deploying fibre in Singapore.’

Added Mr Alan Chan, CEO of SPH, ‘OpenNet’s proposal will help realise Singapore’s vision of being a next generation city. The network paves the way for an advanced broadband infrastructure, supporting seamless connectivity which will boost Singapore?s competitiveness and attractiveness as a global business and infocomm hub.’

SingTel and Axia each own 30 per cent of the venture, while Singapore Press has a 25 per cent stake and Singapore Power 15 per cent. Singapore Press, the city’s largest newspaper publisher, owns shares of MobileOne Ltd. and StarHub, which submitted the rival bid.

Ten companies including Alcatel-Lucent, BT Group Plc, Nokia Siemens Networks and NTT West were short-listed to bid for the so-called Next Generation National Broadband Network.

There were 4.2 million high-speed Internet subscribers at the end of Jul, according to the regulator.

Singapore requires separate companies to build and operate the infrastructure. Singapore will pay as much as S$250 million to the company chosen to operate the network.

Singapore has introduced an Intelligent Nation 2015 program to help triple technology-related exports to S$60 billion and create 80,000 jobs. The city also started offering free wireless Internet access for three years starting in Dec 2006.

http://www.ida.gov.sg/News%20and%20Events/20080926174755.aspx?getPagetype=20
Singapore’s Next Generation National Broadband Network To Be Nationwide by 2012

Singapore, 26 September 2008 | For Immediate Release

Government Selects OpenNet’s Proposal To Build Passive Infrastructure

By 2012, homes and offices nationwide will be connected to Singapore’s ultra high-speed and pervasive Next Generation National Broadband Network (Next Gen NBN). In two years’ time, 60 per cent of homes and offices can already expect to have access to this new, pervasive, all-fibre network.

At a media conference this afternoon, Minister for Information, Communications and the Arts (MICA), Dr Lee Boon Yang, said, “I am pleased to announce that the Government has decided to select the proposal from OpenNet Consortium to design, build and operate the passive infrastructure for the Next Gen NBN.”

OpenNet’s proposal offers attractive wholesale prices that can stimulate a vibrant and competitive retail market. Users can look forward to innovative services from as early as 2010. OpenNet will be making use of existing ducts and other underlying infrastructure, thereby minimising disruption to the public and enabling the network to reach homes and buildings nationwide by 2012.

OpenNet is led by Axia NetMedia Corporation with Singapore Telecommunications Ltd, Singapore Press Holdings Ltd and SP Telecommunications Pte Ltd as the other members of the consortium. The NetCo Request-for-Proposal (RFP) was launched on 11 December 2007 and closed on 5 May 2008 with proposals from two consortia, namely Infinity and OpenNet.

OpenNet’s Proposal

As the selected NetCo, OpenNet will design, build and operate the passive infrastructure of the Next Gen NBN that will be capable of delivering speeds of up to 1 Gbps and beyond. The Government will provide a grant of up to S$750 million to the NetCo to support the network rollout.

OpenNet will offer attractive wholesale prices of S$15 per month per residential fibre connection and S$50 per month per non-residential fibre connection, to the Operating Companies or OpCos. Such wholesale prices are expected to bring about competitive retail prices in the ultra-high speed broadband market.

To encourage premise owners to connect their homes and businesses to the network, OpenNet is required to waive installation charges for home and building owners when the network first reaches their premises.
Under a Universal Service Obligation, which will take effect from 2013, OpenNet will also fulfil all subsequent requests to install fibre termination points in homes, offices and buildings.

In its proposal, OpenNet will deploy and own all the fibre optic cables and offer wholesale dark fibre services to downstream operators on a non-discriminatory basis as set out in the RFP. OpenNet will make use of relevant existing underlying passive infrastructure assets, such as ducts, manholes and exchanges, belonging to its partner, SingTel, to facilitate the deployment of its fibre network. As part of OpenNet’s proposal, SingTel has committed to transfer these underlying assets to a neutral party within 24 months of the NetCo’s Contractual and Financial Close, or CFC in short. The CFC will take place within seven months of today’s award. The neutral party, called the Asset Company or AssetCo, will be an independent and separately managed company. It will be owned by a registered business trust or will be structured in a similar manner to be approved by IDA.

SingTel, as a member of OpenNet, has also committed to reduce its stake in this AssetCo within five years of the CFC and seek the relevant shareholders’ and regulatory approvals, where required. As part of the successful close of the RFP, SingTel is also required to submit to IDA for approval, a detailed implementation plan on the formation of the AssetCo and subsequent partial divestment of its relevant underlying assets.

Dr Lee mentioned at the December 2007 launch of the NetCo RFP that the Government views Effective Open Access through a structural and/or operational separation as key to the achievement of a vibrant and competitive next generation broadband market. The RFP has achieved this outcome for the Next Gen NBN. Nevertheless, Government will continue to consider the need for legislation to entrench Effective Open Access in this market over the long term.

At today’s media briefing, Dr Lee also said: “Today, we have arrived at a significant milestone for Singapore. The Next Gen NBN propels Singapore to the forefront of broadband development internationally. Soon, Singaporeans will be able to enjoy a richer broadband experience with more choices and at affordable prices. Businesses, large and small, will find it cheaper and easier to access ultra high-speed broadband, and be able to use infocomm more extensively to boost productivity and competitiveness. The Next Gen NBN will be a strategic enabler that will transform the way we work, live, learn and play.

To sum up, Singaporeans can look forward to the ABC of Next Gen NBN: Attractive prices for ultra-high-speed broadband; Benefits from innovative services, Coverage nationwide with minimal disruption during fast roll-out.”

Next Steps

With the selection of the NetCo, OpenNet is expected to work closely with the Infocomm Development Authority of Singapore to provide the necessary network information for Next Gen NBN Operating Company (OpCo) RFP bidders to finalise their bid submissions, which are expected to be due on 14 November 2008.

——————————————————————————–
ISSUED BY CORPORATE & MARKETING COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
——————————————————————————–

Related Resources:

Annex – Glossary of Terms
http://www.ida.gov.sg/doc/News%20and%20Events/News_and_Events_Level2/20080926174755/MR26Sep08Glossary.pdf

Briefing Slides
http://www.ida.gov.sg/doc/News%20and%20Events/News_and_Events_Level2/20080926174755/NetCo26Sep08.pdf

By: Thinking Two

Thinking Two — Thu, 13 Nov 2008 01:18:34 +0000

The answer is very very very simple.

They employed all non-productive personel with very very very high pay. Just take for example : TimeCom, managers and executives are more than the low ranking staff.

If you look at the account, it will generate a gross profit; and it will not generate a net profit but net loss.

Just to spoon feed those non-productive managers and executive.

My friend work there, he is a manager but he is also report to a manager and his subordinate is also a manager. Everybody is manager.

By: achia3

achia3 — Thu, 13 Nov 2008 00:55:02 +0000

Unc Kit penetration of 17% is about just right with estimated total population of 25Mil that equated to about 4.25Mil. With 2Mil in KL, 1Mil in Penang and the rest in other \major\ M’sian cities. That’s about right. If more penetration it only mean more readers of RPK, DSAI, Jeff Ooi, other PR bloggers and of course not forgetting this famous Blog. Umno had never had an intention to allow internet to expand at lighting speed like Australia or SKorea to capture wider usage/coverage. It’s another form of media gag. M’sia will never be a free market so as long Umno is still the political master with two feet firmly planted in the corporate world. Najib’s announcement of the new 30% bumi requirement is just another smokescreen. Other bureaucracy is in place to curb any follow through. Keep pushing forward. PR is not far from success…..worst come to worst it is just four years away.

By: passerby

passerby — Wed, 12 Nov 2008 20:39:32 +0000

YB. Maybe you should have asked will the gov. willing to consider to allow the building of another HSBB network by Redstone without a single sen of subsidy from the gov. if the company is prepared to pay a matching commission to him (the minister) ?

By: born_malaysian

born_malaysian — Wed, 12 Nov 2008 18:26:08 +0000

Basically, a free market encourages competition, and competitor has to innovate to survive.. In this case, then only the taxpayers will enjoy the benefits.. since the costs will be lowered and services improved.. If Malaysia still want monopoly in such a important industry.. we are telling ourselves Technology do not need innovation..

The award to TM is cannibalising those WiMax companies like Green Packet and REDTone.. What the Government can do is to control itself from intervening because a free market works best for itself.. what the government needs to do is just constantly regulate any illegalities from those companies..

Anyway, it is an indication that UMNO is not willing to change.. Long live conservative UMNO.. you will rule the world one day..