By YVONNE TAN
yvonne@thestar.com.my
FINALLY, all that convergence is here. There will be more as technology moves along. Malaysia has finally caught on the global trend and joined a handful of countries on a platform that has been much hyped and talked about, where voice, video and data converge.
Last month, Telekom Malaysia Bhd (TM) made its foray into the triple play scene with its offering known as UniFi. This makes it the first “official” triple-play player in the country.
A triple-play network is one in which voice, video and data are all provided in a single access subscription, where the house telephone provides the voice, and when connected to the computer, serves as a TV and at the same time, provides the data. In short, a three-in-one.
Globally, telecommunication companies have been moving into triple play typically to mitigate the flat revenues from fixed-line networks and to retain customers as competition heats up.
In 2003, the Hong Kong Broadband Network, the broadband subsidiary of Hong Kong telecoms upstart City Telecom launched its pay-TV service marking the completion of its planned triple-play strategy of offering voice, video and broadband Internet access services.
In Singapore, Singapore Telecommunications Ltd (Singtel) opted for triple play in January 2007.
TM recently signed agreements with 20 content providers to offer content for its soon-to-be launched IPTV or Internet protocol TV, which is basically TV on the Internet.
IPTV's strength is its ability to offer services with high availability, quality and interactivity, says TM group CEO Datuk Zamzamzairani Mohd Isa in a recent interview with StarBizWeek.
A quick recap. UniFi's recently unveiled packages are priced at RM149, RM199 and RM249 per month and come with high-speed broadband, IPTV, free voice calls and some other offerings.
But because the packages cannot come “unbundled”, meaning consumers have to take what is offered without an a la carte option, some analysts have said that they are expecting limited take-up.
But that remains to be seen.
Meanwhile, while TM is the official incumbent, some of the other celcos are also well positioned to offer triple play services.
For example, Maxis Communications Bhd, the country's largest celco by subscriber base, currently offers Maxis TV via its tie- up with Astro TV. It has the makings of a triple play service provider.
At Celcom Axiata Bhd, the potential to offer triple play is there by virtue of its link to sister company TM.
Axiata president and CEO Datuk Seri Jamaludin Ibrahim, commenting on triple play, says: “The jury's still out on its potential.
Currently, the potential is still much focused on mobile broadband. TV is not critical, but TV content via mobile 3G is,” he says.
Newest 3G kid on the block, U Mobile Sdn Bhd which is controlled by tycoon Tan Sri Vincent Tan, is another potential triple play candidate, given that Tan had once owned a TV station via his U Mobile (formerly MiTV Corp Sdn Bhd),
YTL Corp Bhd managing director Tan Sri Francis Yeoh says its subsidiary YTL Communications is on track for the rollout of its 4G services, by year-end.
“We are beta-testing it now,” Yeoh tells StarBizWeek.
Packet One Networks (Malaysia) Sdn Bhd recently said it would use its newly-obtained RM50mil loan to further roll out its 4G network infrastructure nationwide
The 4G network is broadband connection with speed of up to one gigabyte per second and will enable speedier access for downloads and so on.
Such networks will enhance the advent of triple play services.
TM's Zamzamzairani says he believes “a lot more companies” can be its competitor due to the rapid changes in the broadband ecosystem and technology sphere.
“I think a lot of people can be our competitor now ... because of the convergence; the entire industry is an ecosystem,” he says.
Analysts, meanwhile, are all-out for encouraging triple play in Malaysia.
“The future is in triple play, the prospects of pure play providers appear limited as customers become more sophisticated and price-discerning, ” says one senior telco analyst.
In a September 2009 industry report released by India's Aarkstore Enterprises, a global market research provider, it is forecast that there would be 64 million IPTV subscribers by the end of 2012, an almost six-fold increase over 2007 levels, a reflection of the growing sophisticated trend globally. Zamzamzairani says the level of content in Malaysia is evolving.
“There won't be an end game. We'll be bringing in more interactive content. So long as Hollywood and Bollywood still spin, we'll add more content.
“One of the main challenges is to make sure consumers get what we promised. Customer expectations are changing fast and they are becoming very sophisticated,” adds Zamzamzairani.
For now, consumers should sit back, relax and wait for the competition to create a lot more offerings.
http://biz.thestar.com.my/news/story.asp?file=/2010/4/10/business/6021983&sec=business
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