Saturday October 23, 2010
YTL Communications Bhd executive
director
Datuk Yeoh Seok Hong
“The Government’s objective is that it wants the private sector to offer services to the people at the cheapest price since it does not want to take that risk.
We were promised that the 2.5/2.6GHz will not be given until 2015 but with all the lobbying (it has been given out). The original spirit was to give 2.6G in 2015. By doing this, they are making it difficult for the new players (to offer services). It is not the right thing to do but if we have to fight and compete, we will do it.
We see convergence of voice, data and video. We plan to launch on Nov 18. You will see convergence. Next year, it will be hybrid TV. We are also bringing digitalisation of broadcasting to Malaysia. All this is being done without any cost to the Government. We are investing billions to transform the way people communicate in future.”
Axiata Group spokesperson
“The element of contest allows regulatory regimes to ensure that innovation is encouraged, inefficient players are weeded out, sustainable business approaches are adopted, and companies with track record are nurtured. Ultimately the goal is to benefit the public and consumers.
Globally, the exponential growth of mobile broadband services has necessitated commitments of new spectrum particularly for services utilising smart phones, connected laptops, tablet computers and the like. For Celcom, the spectrum will pave the way for these new services. It comes as no surprise that globally, governments are being encouraged to allocate as much as 190Mhz of 2.6Mhz spectrum for mobile broadband services.
Given Celcom’s track record in driving broadband penetration, we do believe we could contribute more towards driving this further if we are allocated more spectrum. We hope that in future, additional spectrum will be reallocated to players who effectively use them, as opposed to those who do not.’’
REDtone International Bhd
CEO
Zainal Amanshah
“The way the spectrum is awarded is the government’s prerogative.
We will roll out services to the SMI market as there is a real need for more broadband services to this sector. The role of SMIs in moving to a higher income nation is critical – they have a direct positive impact to our GDP.
Increasingly more SMIs have begun embracing the Web. Many people tend to think of consumer services only when it comes to wireless broadband services or assume that fixed line services will only serve the SMIs. This is not true as wireless broadband services for SMIs is a good, cost effective and reliable alternative solution. This will be an extension to our current services. So, we don’t need to build an entirely new sector.’’
Maxis Bhd spokesperson
Maxis is appreciative that spectrum is available to us in the 2.6GHz category, though it is not reflective of our requirement which is to serve our 13.5 million subscriber base and their data needs.
We have been the first to get off the blocks to trial LTE successfully, already in anticipation of what our customers will want. We have been the leading network investor with an investment of over RM3 billion in just the last 3 years. In addition, we will spend over RM1.4bil this year, therein having covered 94% of the country’s population on 2G and over 64% on 3G and high-speed broadband.
Globally, any allocation of spectrum is widely applied to make sure that progressive incumbents are not throttled and yet new players have a fair opportunity to participate in the nation’s march.’’
Asiaspace Sdn Bhd
chairman
Datuk Abdul Ghani Abdullah
“If merely 3 or 4 players got the LTE, the Government would have been accused of cronyism. What the ministry has done is a clear signal that it wants to be fair and give all a chance to roll out services. If a player is not able to do this, then the player should seriously consider teaming up with another. And if any player fails, it is purely based on market conditions and nothing to do with the authorities.
The business plans should be allowed to change with technological changes. Who are the best people to decide on the merits of the business plan – the players who invest in the business or the regulators?
The government can help by ensuring that backhaul charges are reduced.
If a spectrum is awarded, it is normally for 5-10 years but awarding an apparatus assignment just sets some players back. With yearly renewables, which banks are going to give us the financing? A review is necessary.’’
DiGi spokesperson
To deliver an optimum mix of services (on voice, small and large screen data), it is key for DiGi to have a mix of spectrum to enable the co-existence of different network technologies (2G/3G/LTE), and to have strong capacity/coverage in our network (e.g. the right spectrum to be able to provide basic coverage in rural areas, and high capacity in urban areas).
There are a number of key spectrum bands critical for mobile and broadband in coming years, namely 700/800MHz, 850/900MHz, 1800MHz, 2600MHz (and 2100MHz – the main 3G band).
The use of these bands is influenced by the equipment available (and planned), and the associated technical characteristics. We are excited about the prospect of using the 20MHz of 2600MHz spectrum as the basis for us to launch LTE services by 2013, but as we expand we would expect to use other bands for LTE services as the process of spectrum re-farming continues.
An efficient and transparent refarming process which sees optimal usage of spectrum will provide for more widespread mobile broadband, voice and data access at competitive prices.
Packet One Networks (M) Sdn Bhd
CEO
Michael Lai
‘‘The provision of the 2.6GHz spectrum shows the government’s foresight in preparing for the next wave of technology.
P1 will continue to do its best in utilizing the allocated spectrum. Just like any other scarce resource, the more the allocation, the better it is for any service provider. With ample spectrum, service providers would be able to offer faster broadband speeds and better internet experience to more concurrent users.
With additional spectrum, P1’s main objective is to offer even better and faster broadband speeds to more Malaysians.
It’ll enhance Malaysian’s experience and bring convergence of ubiquitous internet-related services thus living up to the ultimate potential of being a truly connected man to man, man to machine and machine to machine communications.
Any fee for the spectrum in this case would translate to higher cost for Malaysians. This may not be something the country wants if its objective is to offer affordable broadband for the masses.
The bidding system will not contribute to affordable broadband access for the masses and will likely not help a country to accelerate its socio-economic status.’’
U Mobile spokesperson
“Giving out the 2.6GHz spectrum band will put Malaysia in the ‘future’ broadband map on par with other broadband leaders such as US, Germany, Singapore, Hong Kong, Japan and Scandinavia.
However, it would be critical that the LTE spectrum be distributed in a holistic manner through a transparent consultation process to garner industry’s view and study the impact of distributing all these spectrum to the market as a whole.
There are several others LTE spectrum bands i.e. the lower bands frequencies such as 700/800Mhz that need to be considered holistically together with the higher band frequencies such as 2.6GHz.
The competitive impact of the market needs to be assessed by the Government to ensure that LTE and future Broadband technologies benefits can be realized to the fullest.
The LTE infrastructure that we will consider building is greenfield. Cost-effective investment is necessary to meet our long-term investment objective to complement our 3G and HSPA+ networks.
We are open to also consider the possibility of working with other operators in the market for infrastructure sharing to minimize our cost.’’
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7278718&sec=business
Wednesday, October 27, 2010
Taking the rest of the world by storm
Saturday October 23, 2010
By LEONG HUNG YEE
THIRD-GENERATION (3G) spectrum awards took the world by storm where billions (of dollars) were invested to get the prized spectrum.
It started with UK where service providers paid hefty amounts for the expensive 3G spectrum.
Globally, spectrum is rare and telcos that want to move up the value chain pay billions to possess the spectrum to enable them to offer more and better services as well as to be a step ahead of competitors in the fast changing technology.
Most countries tend to auction their 3G and 4G telecommunication spectrum. Malaysian Communications and Multimedia Commission (MCMC) had also raked in a substantial amount of money when it accepted tenders in the first and second rounds when awarding the 3G spectrum.
However, it was slightly different from the 2G licences as the wireless communications were just beginning to take off. Locally, 2G licences were given out to service providers to encourage them to start offering their services.
In India, which had just concluded its long-delayed 3G licence auction, the government has announced that it will turn its attention to 4G spectrum. The bid for India’s 3G spectra was possibly the most aggressive of 3G auctions globally with prices reaching as high as US$15bil.
Now that 4G has come into play, there is another round of awards but it may not be as aggressive as 3G as telcos have learnt a lesson after forking out too much money only to discover there were problems rolling out their services. Although the stakes are a bit lower, nonetheless, the bidding process is still highly competitive.
Europe’s first 4G auction opened in Germany in April this year.
The 4G auction in Germany raised 4.38 billion euros, with Vodafone Germany submitting the highest bid of 1.42 billion euros, followed by Telefonica O2 (1.38 billion euros), Deutsche Telekom (1.3 billion euros), and E-Plus (283.6 million euros).
However, various reports said the over 4 billion euros from the auction of the 4G spectrum in May was just over half of what some analysts predicted.
Meanwhile, Telekom Austria, Hutchison 3, T-Mobile and Orange collectively paid US$54.3mil in Austria’s auction.
Vodafone Germany has recently announced its 4G roll-out for Germany and will have LTE coverage in 1,000 municipalities by Christmas, and the service provider also promised a national network by the end of 2011.
In July, the UK government said it will auction digital dividend spectrum by end-2011, ordering regulator, Ofcom to start preparing for the sale.
The UK government raised £24.6bil at auction for 3G licences a decade ago, a figure seen at the time as exceptionally high, it seems likely that the 4G spectrum auction will raise far less money.
Countries such as Sweden, Norway, Denmark, Finland and the Netherlands have concluded 2.6 GHz spectrum auctions for mobile services.
In the United States mobile phone operators are accelerating the roll-out of 4G mobile services. It was reported that Clearwire, Sprint and Time Warner Cable have each announced plans to launch separate 4G mobile internet services in New York before the end of the year.
Closer to home, Taiwan, Hong Kong and Japan have also auctioned spectrum for the provision of 4G services.
Hong Kong has awarded licenses for 4G mobile operations to the three highest bidders in a recent spectrum auction. The successful telcos are CSL Ltd, Genius Brand Limited and China Mobile Hong Kong Co Ltd.
Currently all three of Singapore’s mobile operators – SingTel, StarHub, and MobileOne – were reported to be conducting trial LTE services in the 2.6GHz band.
Despite gearing up for the 4G technology, Singapore’s regulator Infocomm Development Authority is offering a new set of 3G spectrum blocks to three players.
Two years ago, South Korea announced plans to spend 60 billion won (US$58mil) on developing 4G and even 5G technologies, with the goal of having the highest mobile phone market share by 2012, and the hope of an international standard.
Currently, Japanese company NTT DoCoMo and Samsung are testing 4G communication.
Locally, the scene is not much different as service providers are conducting trials for 4G.
While most countries decided to auction off their spectrum for the 4G, the local regulator, MCMC has decided to allocate from the 2.6GHz spectrum a block of 20MHz each to nine cellular/wireless companies without any bidding process.
The commercial rollout is expected to happen in 2013 and is expected to put Malaysia on par with many countries in the region such as Japan, South Korea, Singapore and Hong Kong. However, there are other countries that are still grappling with 3G spectrum awards such as India and Thailand.
Industry players say 4G is expected to provide a comprehensive and secure all-Internet protocol-based solution where facilities such as IP-telephony, super-broadband Internet access, and streamed multimedia could be provided to users.
An industry player is tight-lipped on what services could be offered in future but says consumers would get better quality and better interaction.
“It will not be any different from the current 3G but better. It (4G) is basically a technology to enable service providers better services and better quality,” he says.
Without a doubt, 4G services will improve mobile Internet services by offering wider broadband connections comparable with WiFi. “Consumers may need a new device to upgrade to 4G technology just like 3G phones. A 2G phone will not be able to receive a video call but a 3G phone can,” he says, adding that mobile phones may be in dual mode in future so that once outside the 4G service area, connectivity will revert to 3G or Edge.
“From a technical perspective, there is a consensus of opinion that 4G is the way forward. It can deliver the video-based and high-speed data services that are currently needed by data-savvy users using mobile telecoms services,” an analyst says.
“Malaysia has moved very fast. 3G was introduced less than 10 years ago and we are already getting ready for the next generation,’’ he adds.
When 3G was introduced, it took a while before it became popular in some countries, and the lack of 3G handsets then dampened growth from the start.
This may not be the case in embracing 4G given that consumers are becoming more technology or data-savvy while the availability of 4G mobile phones is increasing.
Basically, the first generation of wireless technology refers to the analogue signal used by cellular towers while 2G technology upgraded the analogue signal to digital and allowed the inclusion of sending SMS across the network.
The 3G technology uses electromagnetic wavelengths, known as spectrum, to broadcast a wireless broadband signal that allowed users to access the Internet and download applications using a 3G data card or a handheld mobile device such as a Blackberry or iPhone. 4G technology will enable faster information transfer times, heightened security and greater information exchange abilities.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7272917&sec=business
By LEONG HUNG YEE
THIRD-GENERATION (3G) spectrum awards took the world by storm where billions (of dollars) were invested to get the prized spectrum.
It started with UK where service providers paid hefty amounts for the expensive 3G spectrum.
Globally, spectrum is rare and telcos that want to move up the value chain pay billions to possess the spectrum to enable them to offer more and better services as well as to be a step ahead of competitors in the fast changing technology.
Most countries tend to auction their 3G and 4G telecommunication spectrum. Malaysian Communications and Multimedia Commission (MCMC) had also raked in a substantial amount of money when it accepted tenders in the first and second rounds when awarding the 3G spectrum.
However, it was slightly different from the 2G licences as the wireless communications were just beginning to take off. Locally, 2G licences were given out to service providers to encourage them to start offering their services.
In India, which had just concluded its long-delayed 3G licence auction, the government has announced that it will turn its attention to 4G spectrum. The bid for India’s 3G spectra was possibly the most aggressive of 3G auctions globally with prices reaching as high as US$15bil.
Now that 4G has come into play, there is another round of awards but it may not be as aggressive as 3G as telcos have learnt a lesson after forking out too much money only to discover there were problems rolling out their services. Although the stakes are a bit lower, nonetheless, the bidding process is still highly competitive.
Europe’s first 4G auction opened in Germany in April this year.
The 4G auction in Germany raised 4.38 billion euros, with Vodafone Germany submitting the highest bid of 1.42 billion euros, followed by Telefonica O2 (1.38 billion euros), Deutsche Telekom (1.3 billion euros), and E-Plus (283.6 million euros).
However, various reports said the over 4 billion euros from the auction of the 4G spectrum in May was just over half of what some analysts predicted.
Meanwhile, Telekom Austria, Hutchison 3, T-Mobile and Orange collectively paid US$54.3mil in Austria’s auction.
Vodafone Germany has recently announced its 4G roll-out for Germany and will have LTE coverage in 1,000 municipalities by Christmas, and the service provider also promised a national network by the end of 2011.
In July, the UK government said it will auction digital dividend spectrum by end-2011, ordering regulator, Ofcom to start preparing for the sale.
The UK government raised £24.6bil at auction for 3G licences a decade ago, a figure seen at the time as exceptionally high, it seems likely that the 4G spectrum auction will raise far less money.
Countries such as Sweden, Norway, Denmark, Finland and the Netherlands have concluded 2.6 GHz spectrum auctions for mobile services.
In the United States mobile phone operators are accelerating the roll-out of 4G mobile services. It was reported that Clearwire, Sprint and Time Warner Cable have each announced plans to launch separate 4G mobile internet services in New York before the end of the year.
Closer to home, Taiwan, Hong Kong and Japan have also auctioned spectrum for the provision of 4G services.
Hong Kong has awarded licenses for 4G mobile operations to the three highest bidders in a recent spectrum auction. The successful telcos are CSL Ltd, Genius Brand Limited and China Mobile Hong Kong Co Ltd.
Currently all three of Singapore’s mobile operators – SingTel, StarHub, and MobileOne – were reported to be conducting trial LTE services in the 2.6GHz band.
Despite gearing up for the 4G technology, Singapore’s regulator Infocomm Development Authority is offering a new set of 3G spectrum blocks to three players.
Two years ago, South Korea announced plans to spend 60 billion won (US$58mil) on developing 4G and even 5G technologies, with the goal of having the highest mobile phone market share by 2012, and the hope of an international standard.
Currently, Japanese company NTT DoCoMo and Samsung are testing 4G communication.
Locally, the scene is not much different as service providers are conducting trials for 4G.
While most countries decided to auction off their spectrum for the 4G, the local regulator, MCMC has decided to allocate from the 2.6GHz spectrum a block of 20MHz each to nine cellular/wireless companies without any bidding process.
The commercial rollout is expected to happen in 2013 and is expected to put Malaysia on par with many countries in the region such as Japan, South Korea, Singapore and Hong Kong. However, there are other countries that are still grappling with 3G spectrum awards such as India and Thailand.
Industry players say 4G is expected to provide a comprehensive and secure all-Internet protocol-based solution where facilities such as IP-telephony, super-broadband Internet access, and streamed multimedia could be provided to users.
An industry player is tight-lipped on what services could be offered in future but says consumers would get better quality and better interaction.
“It will not be any different from the current 3G but better. It (4G) is basically a technology to enable service providers better services and better quality,” he says.
Without a doubt, 4G services will improve mobile Internet services by offering wider broadband connections comparable with WiFi. “Consumers may need a new device to upgrade to 4G technology just like 3G phones. A 2G phone will not be able to receive a video call but a 3G phone can,” he says, adding that mobile phones may be in dual mode in future so that once outside the 4G service area, connectivity will revert to 3G or Edge.
“From a technical perspective, there is a consensus of opinion that 4G is the way forward. It can deliver the video-based and high-speed data services that are currently needed by data-savvy users using mobile telecoms services,” an analyst says.
“Malaysia has moved very fast. 3G was introduced less than 10 years ago and we are already getting ready for the next generation,’’ he adds.
When 3G was introduced, it took a while before it became popular in some countries, and the lack of 3G handsets then dampened growth from the start.
This may not be the case in embracing 4G given that consumers are becoming more technology or data-savvy while the availability of 4G mobile phones is increasing.
Basically, the first generation of wireless technology refers to the analogue signal used by cellular towers while 2G technology upgraded the analogue signal to digital and allowed the inclusion of sending SMS across the network.
The 3G technology uses electromagnetic wavelengths, known as spectrum, to broadcast a wireless broadband signal that allowed users to access the Internet and download applications using a 3G data card or a handheld mobile device such as a Blackberry or iPhone. 4G technology will enable faster information transfer times, heightened security and greater information exchange abilities.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7272917&sec=business
What is spectrum?
Saturday October 23, 2010
By LEONG HUNG YEE
hungyee@thestar.com.my
DO you know that remote-controlled cars – yes, the children’s (and adults with such fetishes) plaything with forward, backward and left and right turn functions – use spectrum? These toys are designed with radio-controlled systems to enable users to control via radio waves so that it will perform multiple functions.
On top of that, there are other things in our daily routine that uses spectrum such as the auto gate at your home, television, wireless Internet connectivity, radio and mobile phones.
But what really is this thing called spectrum?
“Basically, spectrum refers to a range of radio frequencies. The bandwidth of a radio signal is the difference between the upper and lower frequencies of the signal,” explains an industry player.
In simpler terms, spectrum refers to the range of frequencies over which electromagnetic radio frequencies signals can be sent. It includes radio, television, wireless Internet connectivity, remote control toy race cars, and every other communication enabled by radio waves.
He enlikens spectrum to a dedicated parking space for a respective unit in a condominium. “The parking lot is yours. No one else can park it there or they risk their cars being clamped unless you rent it out to your neighbour who has a few cars.
“A spectrum belongs to a specific operator. Only that particular telco can operate in that space to avoid interference with others. Of course, if they have excess capacity, they can rent it out to other operators,” he says.
Other industries such as defence, the police force, fire brigade, ambulance and maritime enforcement agency also use spectrum for radio communications.
A voice signal has a frequency of 200 hertz (Hz) and a maximun frequency of 3,000 Hz while the bandwidth is 2,800 Hz about 3KHz.
“The amount of bandwidth needed for 3G services could be as much as 15 to 20 Mhz, whereas for 2G services, a bandwidth of 30 to 200 Khz is used. Hence for 3G, huge bandwidth is required to enable services such as video calling and internet access,” he adds.
According to Malaysian Communications and Multimedia Commission (MCMC), spectrum means the continuous range of electromagnetic wave frequencies up to and including a frequency of 420 terahertz.
Generally, no one shall intentionally transmit in any part of the spectrum to provide a network service unless the person holds a spectrum assignment, an apparatus assignment or a class assignment.
All three assignments are stipulated in the Malaysian Communications and Multimedia Act 1998, Spectrum Regulation 2000 and other guidelines issued by the MCMC.
However, MCMC may issue a spectrum assignment which confers rights on a person to use one or more specified frequency bands. Telecommunications companies will need to buy a frequency spectrum from the rightful governing bodies, which in this country is MCMC, to set up a data or voice network.
“Telcos can only transmit data at the frequencies for which they are licensed to avoid interference with others. Because there are multiple users on the network using the frequency at one time, there are different methods that telcos use to make sure information can be transmitted and received seamlessly by customers,” says the industry player.
In different parts of the world, different organizations allot parts of the overall electromagnetic spectrum to different uses.
Locally, the MCMC governs the allocation of spectrum. In Singapore, it is the Singapore Infocomm Development Authority while in the United States, it is the Federal Communications Commission. Globally, the spectrum is governed by the International Telecommunication Union (ITU).
In many parts of the world, international agreements are also required so that communications systems in neighbouring countries will not interfere with each other.
There is no common band plan as all countries have a different band. And the spectrum is allotted for various purposes such as television. For example, the FM radio station gets certain slots while AM radio stations have different slots and similarly for cellular communications which have their own slots.
As the world becomes increasingly wireless (with cordless phones, cell phones, wireless Internet and GPS devices), allocation of the available spectrum to each technology is expected to become increasingly contentious.
“Bandwidth is something that we just can’t get enough of, or to put it another way, there’s no such thing as too much bandwidth.
“Just when you think that you’ve got enough bandwidth to do your stuff, out comes another technological advancement that says the opposite. If you ask frequent Internet users, the first thing that they would say is that they need more bandwidth,” an analyst says.
The first generation networks used are analog while the second generation (2G) networks are digital and 3G technology is used to enhance mobile phone standards. The highlight of 3G is video telephony which enables users to use video call function.
Although the country had just embraced the third-generation (3G) in 2005, we are now moving towards the 4G directions.
In May 2005, Celcom became the first local telco to launch 3G services in Malaysia and Maxis launched its 3G phone service in July the same year.
The first 3G bid happened in 2002 where MCMC awarded two blocks of spectrum to Telekom Malaysia Bhd and Maxis Communications Bhd then. Subsequently, the regulator opened a second round of 3G bid and awarded it to Time dotCom Bhd and MiTV Corp Sdn Bhd.
Recently, MCMC has allocated the 2.6GHz spectrum a block of 20MHz to nine cellular/wireless companies that is meant for long-term evolution (LTE) or 4G.
The regulator is allocating 20Mhz bandwidth, TDD or FDD, for each player but the location of the block will be decided later. The LTE will enable users to transfer large files to and enjoy streaming video on mobile devices, as well as watch almost high-definition quality video.
Celcom Axiata Bhd and Maxis Bhd had announced they had undertaken trials for 4G.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7265905&sec=business
By LEONG HUNG YEE
hungyee@thestar.com.my
DO you know that remote-controlled cars – yes, the children’s (and adults with such fetishes) plaything with forward, backward and left and right turn functions – use spectrum? These toys are designed with radio-controlled systems to enable users to control via radio waves so that it will perform multiple functions.
On top of that, there are other things in our daily routine that uses spectrum such as the auto gate at your home, television, wireless Internet connectivity, radio and mobile phones.
But what really is this thing called spectrum?
“Basically, spectrum refers to a range of radio frequencies. The bandwidth of a radio signal is the difference between the upper and lower frequencies of the signal,” explains an industry player.
In simpler terms, spectrum refers to the range of frequencies over which electromagnetic radio frequencies signals can be sent. It includes radio, television, wireless Internet connectivity, remote control toy race cars, and every other communication enabled by radio waves.
He enlikens spectrum to a dedicated parking space for a respective unit in a condominium. “The parking lot is yours. No one else can park it there or they risk their cars being clamped unless you rent it out to your neighbour who has a few cars.
“A spectrum belongs to a specific operator. Only that particular telco can operate in that space to avoid interference with others. Of course, if they have excess capacity, they can rent it out to other operators,” he says.
Other industries such as defence, the police force, fire brigade, ambulance and maritime enforcement agency also use spectrum for radio communications.
A voice signal has a frequency of 200 hertz (Hz) and a maximun frequency of 3,000 Hz while the bandwidth is 2,800 Hz about 3KHz.
“The amount of bandwidth needed for 3G services could be as much as 15 to 20 Mhz, whereas for 2G services, a bandwidth of 30 to 200 Khz is used. Hence for 3G, huge bandwidth is required to enable services such as video calling and internet access,” he adds.
According to Malaysian Communications and Multimedia Commission (MCMC), spectrum means the continuous range of electromagnetic wave frequencies up to and including a frequency of 420 terahertz.
Generally, no one shall intentionally transmit in any part of the spectrum to provide a network service unless the person holds a spectrum assignment, an apparatus assignment or a class assignment.
All three assignments are stipulated in the Malaysian Communications and Multimedia Act 1998, Spectrum Regulation 2000 and other guidelines issued by the MCMC.
However, MCMC may issue a spectrum assignment which confers rights on a person to use one or more specified frequency bands. Telecommunications companies will need to buy a frequency spectrum from the rightful governing bodies, which in this country is MCMC, to set up a data or voice network.
“Telcos can only transmit data at the frequencies for which they are licensed to avoid interference with others. Because there are multiple users on the network using the frequency at one time, there are different methods that telcos use to make sure information can be transmitted and received seamlessly by customers,” says the industry player.
In different parts of the world, different organizations allot parts of the overall electromagnetic spectrum to different uses.
Locally, the MCMC governs the allocation of spectrum. In Singapore, it is the Singapore Infocomm Development Authority while in the United States, it is the Federal Communications Commission. Globally, the spectrum is governed by the International Telecommunication Union (ITU).
In many parts of the world, international agreements are also required so that communications systems in neighbouring countries will not interfere with each other.
There is no common band plan as all countries have a different band. And the spectrum is allotted for various purposes such as television. For example, the FM radio station gets certain slots while AM radio stations have different slots and similarly for cellular communications which have their own slots.
As the world becomes increasingly wireless (with cordless phones, cell phones, wireless Internet and GPS devices), allocation of the available spectrum to each technology is expected to become increasingly contentious.
“Bandwidth is something that we just can’t get enough of, or to put it another way, there’s no such thing as too much bandwidth.
“Just when you think that you’ve got enough bandwidth to do your stuff, out comes another technological advancement that says the opposite. If you ask frequent Internet users, the first thing that they would say is that they need more bandwidth,” an analyst says.
The first generation networks used are analog while the second generation (2G) networks are digital and 3G technology is used to enhance mobile phone standards. The highlight of 3G is video telephony which enables users to use video call function.
Although the country had just embraced the third-generation (3G) in 2005, we are now moving towards the 4G directions.
In May 2005, Celcom became the first local telco to launch 3G services in Malaysia and Maxis launched its 3G phone service in July the same year.
The first 3G bid happened in 2002 where MCMC awarded two blocks of spectrum to Telekom Malaysia Bhd and Maxis Communications Bhd then. Subsequently, the regulator opened a second round of 3G bid and awarded it to Time dotCom Bhd and MiTV Corp Sdn Bhd.
Recently, MCMC has allocated the 2.6GHz spectrum a block of 20MHz to nine cellular/wireless companies that is meant for long-term evolution (LTE) or 4G.
The regulator is allocating 20Mhz bandwidth, TDD or FDD, for each player but the location of the block will be decided later. The LTE will enable users to transfer large files to and enjoy streaming video on mobile devices, as well as watch almost high-definition quality video.
Celcom Axiata Bhd and Maxis Bhd had announced they had undertaken trials for 4G.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7265905&sec=business
Change is in the air
Saturday October 23, 2010
Change is in the air
By B.K. SIDHU
bksidhu@thestar.com.my
The battle to control frequencies needs to be refined but the final outcome could be life-changing for consumers
THE jockeying for spectrum – deemed the “most prized resource of the Information Age – among mobile telecommunication operators is usually pretty intense. The reason is simple – without the precious resource, mobile telcos will not be able to keep up with the demands of the digital era to stay ahead of the game.
In fact, the lobbying for spectrum could get out of whack in the perceived absence of clearly-defined guidelines and transparency on spectrum allocation. This is exactly what took place recently in Malaysia following the 2.6GHz spectrum award.
It began on Oct 21 when wireless players caught wind of the news that they each have a 20 Mhz block of the 2.5/2.6GHz spectrum. (On the very day, StarBiz broke the story that nine parties were allocated blocks of the same spectrum).
A video call displays the caller and respondent on the mobile screen.
The victors – eight existing wireless players and one newcomer. The new kid on the spectrum block is Puncak Semangat Sdn Bhd, a company linked to a prominent tycoon who has been making news lately in the business sphere – Tan Sri Syed Mokhtar Albukhary.
The others include Celcom (M) Bhd, DiGi.Com Bhd, Maxis Bhd and U Mobile and four WiMAX players – Asiaspace Sdn Bhd, Packet One Networks Sdn Bhd, REDTone International Bhd and YTL Communications Bhd.
The awards on the frequency, to be made available from Jan 1, 2013, were issued by industry regulator Malaysian Communications and Multimedia Commission (MCMC).
Some industry observers view it as an early “New Year gift”, while others lament the lack of “consultative approach” in the process of spectrum allocation. A more engaging approach by the regulator, they say, would ensure that only serious players get in on the game. The issue of the highly discreet and secretive manner of dishing out valuable future spectrum also hogged the blogosphere, with most of them crying out for more transparency.
“We would have preferred the 2.6GHz spectrum allocation be contest-based, with clear criteria on elements such as service roll-out, past performance, management track record, commitment to consumers, and financial ability,’’ said a spokesperson from Celcom’s parent company Axiata Group.
“Market-based approach can be a good way to ensure that the spectrum can be acquired by serious bidders. The approach taken by the Government in terms of allocating the spectrum needs to be transparent where industry is properly consulted so that the competitive impact and its benefits to the rakyat can be achieved,’’ said a U Mobile spokesperson.
Change of heart
Globally, governments have raked in millions of dollars through the award of the LTE (long term evolution) spectrum, also commonly known as the fourth generation (4G) of wireless technology.
LTE is the next big thing in the wireless world and while the Malaysian government could have generated millions of ringgit from spectrum sales for its coffers, it had chosen not to.
Spectrum award in the past has been mixed. For 2G, it was given out to encourage players into the cellular business while the 3G was done via a beauty-style bidding process. A WiMAX 2.3GHz tender bid was recalled at the 11th hour and later four new players were named winners.
The reversal in policy this time is not known. MCMC declined comment for this article, but it had earlier said the decision to award to nine parties was made after a lengthy and consultative and deliberation process with various technical groups that began two years ago.
Even if there was an auction, the ceiling price would have been determined at a level which allows all to pay; the notion that a bidding process would result in higher cost of services is viewed by some as a mere excuse by industry players to avoid paying for this prized commodity. Lending credence to this thinking is that industry players abroad, in most countries, have to fork out huge sums of money to acquire the spectrum.
“An auction process would have separated the wheat from the chaff,’’ says an observer.
Of course, those who bagged the spectrum have little to complain.
REDtone International Bhd CEO Zainal Amanshah says the company got it based on merit as it was earlier not awarded the 2.3G spectrum for Peninsular Malaysia.
“We have been doing national service for the past two years that have cost us millions of ringgit. Hence for us, (we feel) the Government has levelled the playing field (by giving us the 2.6GHz),’’ he says.
The issue may be less of who secured the spectrum (although there are niggling points here too, for instance, why was Jaring left out?), but more of – why give it to so many?
“It is mind-boggling to give the 2.3Ghz players the 2.6Ghz spectrum, as such a move would actually increase inventory as well as support cost. The operators need to keep two spare parts and so forth,’’ says the expert.
The LTE way
Without a doubt, LTE is by far, the most superior technology available which allows mobile operators to meet the bursting-from-its-seams demand for mobile data access.
It is designed for data, unlike 2G, which was voice, and 3G, a mix of voice and little data. LTE is more data, less voice and it is built for speed. But it needs an IP (Internet protocol) platform. Combined with 700Mhz, it has picture perfect quality.
That is what convergence is – data, voice and video. That explains why Alcatel-Lucent boss Ben Verwaayen says that video will be the future battle ground for telco players.
The forecast data is eye-popping. According to Juniper Research, subscribers for LTE next-generation wireless broadband services is estimated to reach 300 million by 2015 from 500,000 this year. Western Europe will represent the largest LTE market share, with North America and Far East/China having roughly equal shares of the market. The concentration of users in developed countries will result in LTE penetration of one in 20 subscribers by 2015.
“We will change the way people communicate and with LTE we will go further,’’ says YTL Comms executive director Datuk Yeoh Seok Hong.
Currently, Maxis and Celcom are carrying out trials while U Mobile is awaiting its trial licence. Asiaspace has tied up with Qualcomm for the trials.
Even so, the frequency will only be available on Jan 1, 2013. The question is ... why wait and not release any sooner? Some say that’s because time is needed for the technology to mature, allowing for more devices to make their way into the market place which can bring cost lower for both players and end-users.
“Yes, but I think it could still save players millions of ringgit from investing in existing networks if the flood gates are open sooner,’’ says a player.
Asiaspace chairman Datuk Abdul Ghani Abdullah argues that with technology evolving so fast, will the business plan be valid after sometime? “Often players are penalised for not sticking to the plan, but technology is evolving fast and players should be allowed to change the plan accordingly too.”
Companies that have secured the award will need to submit a detailed business plan by Jan 14, 2011 or the allocation would be withdrawn. The plan should outline a five-year business plan to achieve 50% coverage. Once approved, the assignment takes place but only after the companies have raised an irrevocable bank guarantee of RM10mil to guarantee compliance to the business plan.
Is 20Mhz too little too late?
Earlier this year, the regulator undertook a re-farming exercise. Re-farming involves the clearing of frequencies from low-value (by economic and/or social criteria) and reassignment to high-value applications by the spectrum manager.
The outcome of that exercise is not clear, but some players say 2.6GHz is just the first step.
They need more spectrum such as the 700 and 800Mhz, which is critical.
“There are several other bands but the 700 and 800Mhz bands need to be considered holistically with the higher band frequencies such as 2.6G,” says the spokesperson from U Mobile.
So, would 20MHz suffice for reasonably good service coverage and quality?
“I don’t think so ... 30MHz should actually be allocated to a player to allow reasonable frequency re-use. Furthermore coverage radius is so small and there is a need for many base stations. Without proper design, it will result in a lot of interferences,’’ says an industry expert.
The Axiata spokesperson says that 20Mhz is “quite inadequate’’ as “in accordance to world best practices, typical allocations to date have been in the 40Mhz (2x20Mhz) range.’’
Another player pokes holes in the process of spectrum allocation. “Dividing 180 MHz with 20MHz to get nine players is a very arithmetic way of doing things. To make it worst, after that their business proposals are solicited. Why not get the business proposal first?’’
“Spectrum re-farming is needed because of development of technology. But its effectiveness depends on the thoroughness of the planning process in the first place. Re-farming of spectrum in-use is a very expensive affair. On the other hand, I heard some operators are sitting on certain spectrum without being penalised,’’ says a player.
Instead of calling it spectrum, the regulator calls it apparatus assignment (AA). Those in the know claim that the difference is purely academic as it essentially means the same thing.
“Once you get a spectrum, you still need to get an AA, which is essentially access to a particular block of airwaves between two points,’’ says an observer.
Perhaps the move to issue AAs is to enable the regulator to pull the plug on the operator in the event of underperformance – if the player is sitting on valuable spectrum instead of using it to provide services.
Players are also likely to pay yearly payments for sites deployed as done in the past and a review of this is what players want.
“The basis of determining fee should perhaps move to a more efficient regime based on bandwidth allocated as opposed to sites deployed. This is essential as spectrum is a national resource and fees must be structured so as to encourage usage and deployment, rather than remain unutilized,’’ Axiata spokesperson says.
The RM27bil question
Still, as far as consumers are concerned, WiMAX or LTE, it matters little to them. What really matters is what they can get as a result. LTE promises a whole new experience for the user, provided the nine companies awarded the spectrum are willing to invest to build, innovate and create.
“I wonder how many of these nine companies will actually invest to roll out LTE. For some, it’s essentially a migration from 2G to 3G and LTE, but for others, they have to fork out billions to invest in a completely new network. There are profits to be made as the celcos in this country have the highest margins in the region, but the business also requires huge investments with a long gestation period,” says an analyst.
When Time dotCom Bhd received its 3G spectrum a few years ago, it discovered that it could not plough in RM3bil to build the network and so, had sold it at a hefty price.
“It is important to make sure that collectively, industry resources are pooled to develop high-speed information highways and reach under-served areas to realise the Malaysian dream,’’ says a Maxis spokesperson.
For 3G, the industry players are spending between RM700mil and RM1bil each year to roll out their services in the country. How many of these nine players will be able to sustain an estimated RM3bil for a nationwide rollout, which collectively brings the investment total to a whopping RM27bil?
“With such huge investments, can the players get a 20% return on capex for every ringgit spent, which is RM5.4bil in EBITDA? I believe the only one that will gain from the RM27bil exercise is the equipment vendors,’’ he adds.
Ghani of Asiaspace points out that with the AA, it would be difficult for some companies to get funding as opposed to a spectrum award.
With that, another question has popped up ... will the recent award of spectrum to nine companies create nine players or will that be an impetus for consolidation?
Consolidation
The answer to that really depends on how the companies plan to strategise, moving forward. Will they all scramble for the same urban market segment and cherry-pick where they want to offer their services? Or will the Government push them to cover underserved rural areas as well to close the wide digital gap?
Already, many industry players are expecting some form of consolidation in the industry.
“Consolidation should be market driven. Giving too little spectrum would force operators to work with others. Also, the difficulty in getting funding for the rollout could force some others to sell the spectrum and make huge gains in return,” says an analyst.
But is this how it ought to be?
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7278402&sec=business
Change is in the air
By B.K. SIDHU
bksidhu@thestar.com.my
The battle to control frequencies needs to be refined but the final outcome could be life-changing for consumers
THE jockeying for spectrum – deemed the “most prized resource of the Information Age – among mobile telecommunication operators is usually pretty intense. The reason is simple – without the precious resource, mobile telcos will not be able to keep up with the demands of the digital era to stay ahead of the game.
In fact, the lobbying for spectrum could get out of whack in the perceived absence of clearly-defined guidelines and transparency on spectrum allocation. This is exactly what took place recently in Malaysia following the 2.6GHz spectrum award.
It began on Oct 21 when wireless players caught wind of the news that they each have a 20 Mhz block of the 2.5/2.6GHz spectrum. (On the very day, StarBiz broke the story that nine parties were allocated blocks of the same spectrum).
A video call displays the caller and respondent on the mobile screen.
The victors – eight existing wireless players and one newcomer. The new kid on the spectrum block is Puncak Semangat Sdn Bhd, a company linked to a prominent tycoon who has been making news lately in the business sphere – Tan Sri Syed Mokhtar Albukhary.
The others include Celcom (M) Bhd, DiGi.Com Bhd, Maxis Bhd and U Mobile and four WiMAX players – Asiaspace Sdn Bhd, Packet One Networks Sdn Bhd, REDTone International Bhd and YTL Communications Bhd.
The awards on the frequency, to be made available from Jan 1, 2013, were issued by industry regulator Malaysian Communications and Multimedia Commission (MCMC).
Some industry observers view it as an early “New Year gift”, while others lament the lack of “consultative approach” in the process of spectrum allocation. A more engaging approach by the regulator, they say, would ensure that only serious players get in on the game. The issue of the highly discreet and secretive manner of dishing out valuable future spectrum also hogged the blogosphere, with most of them crying out for more transparency.
“We would have preferred the 2.6GHz spectrum allocation be contest-based, with clear criteria on elements such as service roll-out, past performance, management track record, commitment to consumers, and financial ability,’’ said a spokesperson from Celcom’s parent company Axiata Group.
“Market-based approach can be a good way to ensure that the spectrum can be acquired by serious bidders. The approach taken by the Government in terms of allocating the spectrum needs to be transparent where industry is properly consulted so that the competitive impact and its benefits to the rakyat can be achieved,’’ said a U Mobile spokesperson.
Change of heart
Globally, governments have raked in millions of dollars through the award of the LTE (long term evolution) spectrum, also commonly known as the fourth generation (4G) of wireless technology.
LTE is the next big thing in the wireless world and while the Malaysian government could have generated millions of ringgit from spectrum sales for its coffers, it had chosen not to.
Spectrum award in the past has been mixed. For 2G, it was given out to encourage players into the cellular business while the 3G was done via a beauty-style bidding process. A WiMAX 2.3GHz tender bid was recalled at the 11th hour and later four new players were named winners.
The reversal in policy this time is not known. MCMC declined comment for this article, but it had earlier said the decision to award to nine parties was made after a lengthy and consultative and deliberation process with various technical groups that began two years ago.
Even if there was an auction, the ceiling price would have been determined at a level which allows all to pay; the notion that a bidding process would result in higher cost of services is viewed by some as a mere excuse by industry players to avoid paying for this prized commodity. Lending credence to this thinking is that industry players abroad, in most countries, have to fork out huge sums of money to acquire the spectrum.
“An auction process would have separated the wheat from the chaff,’’ says an observer.
Of course, those who bagged the spectrum have little to complain.
REDtone International Bhd CEO Zainal Amanshah says the company got it based on merit as it was earlier not awarded the 2.3G spectrum for Peninsular Malaysia.
“We have been doing national service for the past two years that have cost us millions of ringgit. Hence for us, (we feel) the Government has levelled the playing field (by giving us the 2.6GHz),’’ he says.
The issue may be less of who secured the spectrum (although there are niggling points here too, for instance, why was Jaring left out?), but more of – why give it to so many?
“It is mind-boggling to give the 2.3Ghz players the 2.6Ghz spectrum, as such a move would actually increase inventory as well as support cost. The operators need to keep two spare parts and so forth,’’ says the expert.
The LTE way
Without a doubt, LTE is by far, the most superior technology available which allows mobile operators to meet the bursting-from-its-seams demand for mobile data access.
It is designed for data, unlike 2G, which was voice, and 3G, a mix of voice and little data. LTE is more data, less voice and it is built for speed. But it needs an IP (Internet protocol) platform. Combined with 700Mhz, it has picture perfect quality.
That is what convergence is – data, voice and video. That explains why Alcatel-Lucent boss Ben Verwaayen says that video will be the future battle ground for telco players.
The forecast data is eye-popping. According to Juniper Research, subscribers for LTE next-generation wireless broadband services is estimated to reach 300 million by 2015 from 500,000 this year. Western Europe will represent the largest LTE market share, with North America and Far East/China having roughly equal shares of the market. The concentration of users in developed countries will result in LTE penetration of one in 20 subscribers by 2015.
“We will change the way people communicate and with LTE we will go further,’’ says YTL Comms executive director Datuk Yeoh Seok Hong.
Currently, Maxis and Celcom are carrying out trials while U Mobile is awaiting its trial licence. Asiaspace has tied up with Qualcomm for the trials.
Even so, the frequency will only be available on Jan 1, 2013. The question is ... why wait and not release any sooner? Some say that’s because time is needed for the technology to mature, allowing for more devices to make their way into the market place which can bring cost lower for both players and end-users.
“Yes, but I think it could still save players millions of ringgit from investing in existing networks if the flood gates are open sooner,’’ says a player.
Asiaspace chairman Datuk Abdul Ghani Abdullah argues that with technology evolving so fast, will the business plan be valid after sometime? “Often players are penalised for not sticking to the plan, but technology is evolving fast and players should be allowed to change the plan accordingly too.”
Companies that have secured the award will need to submit a detailed business plan by Jan 14, 2011 or the allocation would be withdrawn. The plan should outline a five-year business plan to achieve 50% coverage. Once approved, the assignment takes place but only after the companies have raised an irrevocable bank guarantee of RM10mil to guarantee compliance to the business plan.
Is 20Mhz too little too late?
Earlier this year, the regulator undertook a re-farming exercise. Re-farming involves the clearing of frequencies from low-value (by economic and/or social criteria) and reassignment to high-value applications by the spectrum manager.
The outcome of that exercise is not clear, but some players say 2.6GHz is just the first step.
They need more spectrum such as the 700 and 800Mhz, which is critical.
“There are several other bands but the 700 and 800Mhz bands need to be considered holistically with the higher band frequencies such as 2.6G,” says the spokesperson from U Mobile.
So, would 20MHz suffice for reasonably good service coverage and quality?
“I don’t think so ... 30MHz should actually be allocated to a player to allow reasonable frequency re-use. Furthermore coverage radius is so small and there is a need for many base stations. Without proper design, it will result in a lot of interferences,’’ says an industry expert.
The Axiata spokesperson says that 20Mhz is “quite inadequate’’ as “in accordance to world best practices, typical allocations to date have been in the 40Mhz (2x20Mhz) range.’’
Another player pokes holes in the process of spectrum allocation. “Dividing 180 MHz with 20MHz to get nine players is a very arithmetic way of doing things. To make it worst, after that their business proposals are solicited. Why not get the business proposal first?’’
“Spectrum re-farming is needed because of development of technology. But its effectiveness depends on the thoroughness of the planning process in the first place. Re-farming of spectrum in-use is a very expensive affair. On the other hand, I heard some operators are sitting on certain spectrum without being penalised,’’ says a player.
Instead of calling it spectrum, the regulator calls it apparatus assignment (AA). Those in the know claim that the difference is purely academic as it essentially means the same thing.
“Once you get a spectrum, you still need to get an AA, which is essentially access to a particular block of airwaves between two points,’’ says an observer.
Perhaps the move to issue AAs is to enable the regulator to pull the plug on the operator in the event of underperformance – if the player is sitting on valuable spectrum instead of using it to provide services.
Players are also likely to pay yearly payments for sites deployed as done in the past and a review of this is what players want.
“The basis of determining fee should perhaps move to a more efficient regime based on bandwidth allocated as opposed to sites deployed. This is essential as spectrum is a national resource and fees must be structured so as to encourage usage and deployment, rather than remain unutilized,’’ Axiata spokesperson says.
The RM27bil question
Still, as far as consumers are concerned, WiMAX or LTE, it matters little to them. What really matters is what they can get as a result. LTE promises a whole new experience for the user, provided the nine companies awarded the spectrum are willing to invest to build, innovate and create.
“I wonder how many of these nine companies will actually invest to roll out LTE. For some, it’s essentially a migration from 2G to 3G and LTE, but for others, they have to fork out billions to invest in a completely new network. There are profits to be made as the celcos in this country have the highest margins in the region, but the business also requires huge investments with a long gestation period,” says an analyst.
When Time dotCom Bhd received its 3G spectrum a few years ago, it discovered that it could not plough in RM3bil to build the network and so, had sold it at a hefty price.
“It is important to make sure that collectively, industry resources are pooled to develop high-speed information highways and reach under-served areas to realise the Malaysian dream,’’ says a Maxis spokesperson.
For 3G, the industry players are spending between RM700mil and RM1bil each year to roll out their services in the country. How many of these nine players will be able to sustain an estimated RM3bil for a nationwide rollout, which collectively brings the investment total to a whopping RM27bil?
“With such huge investments, can the players get a 20% return on capex for every ringgit spent, which is RM5.4bil in EBITDA? I believe the only one that will gain from the RM27bil exercise is the equipment vendors,’’ he adds.
Ghani of Asiaspace points out that with the AA, it would be difficult for some companies to get funding as opposed to a spectrum award.
With that, another question has popped up ... will the recent award of spectrum to nine companies create nine players or will that be an impetus for consolidation?
Consolidation
The answer to that really depends on how the companies plan to strategise, moving forward. Will they all scramble for the same urban market segment and cherry-pick where they want to offer their services? Or will the Government push them to cover underserved rural areas as well to close the wide digital gap?
Already, many industry players are expecting some form of consolidation in the industry.
“Consolidation should be market driven. Giving too little spectrum would force operators to work with others. Also, the difficulty in getting funding for the rollout could force some others to sell the spectrum and make huge gains in return,” says an analyst.
But is this how it ought to be?
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7278402&sec=business
Tuesday, October 26, 2010
Mobile phone has come of age
Saturday October 23, 2010
By LEONG HUNG YEE
hungyee@thestar.com.my
DO you remember the brick size mobile phone?
Some of you may ask what is a brick phone. Well, it was a term used frequently to call those black box phones in the early 80s. The early brick phones earned their name from their size and shape as big as a house brick. They were bulky and huge with fat antennas, a far cry from the slim mobile phones today.
The calling
The birth of cellular telephony began in the 1980s in Malaysia, when NMT 450 (Nordic Mobile Telephone) standard was introduced by Telekom Malaysia Bhd, (TM) with its analogue Atur 450 network, operating on a 450 MHz band.
It was reported that the initial investment cost about RM50mil to set up a network of five mobile exchanges and 954 radio channels.
It was the first mobile communication service in the country, but the handsets those days were huge and capacity of the network was small.
TM was the dominant player for cellular phone services for almost five years. From one operator, the numbers swelled as the Government dished out more licences.
The ETACS (extended total access communications system), was introduced by Cellular Communications Network (M) Sdn Bhd (Celcom) in 1989. Its ART 900 analogue service was launched in 1989, and the phones were relatively smaller. ART900 operates on the 900 MHz frequencies operating with the 010 prefix.
However, due to some business considerations, TM sold its 900 MHz analogue system to the Alpine Resources Sdn Bhd in 1989, which later changed its name to Technology Resources Industries Bhd (TRI).
Setting the stage
In 1993, the Government announced that it would award licences to two more operators. Subsequently, TM invested in a stake in Mobikom Sdn Bhd, which operated the Mobifon 800 network – a dual mode analogue and digital system operating in the 800MHz band.
Mobikom is a consortium formed by TM, Edaran Otomobil Nasional Bhd, PNB Equity Resource Corp Sdn Bhd and Sapura Holdings Sdn Bhd, and Ananda Krishnan’s privately-held Binariang Sdn Bhd (known as Maxis today).
TM subsequently acquired the remaining shares in Mobikom, that it did not already own, from others making Mobikom a wholly-owned subsidiary of Telekom Malaysia in 1998.
In 1994, the Government announced the award of three more personal cellular network (PCN) systems to Electronic and Telematique (M) Sdn Bhd, a subsidiary of Sapura Holdings Bhd; MRCB Telecommunications and Mutiara Telecommunications Sdn Bhd (better known as DiGi).
A year after, the Government decided to set start the ball rolling for a consolidation for the crowding celluar industry. It was reported that at that point, there were nine telecommunication players, with various licences under their stable.
With so many licences dished out earlier, the industry became fragmented and had to be consolidated.
As a result, TM moved to acquire MRCB Telecommunications Sdn Bhd, operator of the Emartel cellular network in 1996. The move sparked further consolidations in the industry.
TM went on to buy two other cellular operators, Mobikom Sdn Bhd in 1998, and Celcom in 2003.
By 1996, there were several operators, but now, there are only three main operators – Celcom, DiGi.Com Bhd and Maxis Bhd after rounds of consolidation in the industry.
TM got out of the cellular business in 2008 in a demerger exercise. Its cellular business were hived off to Axiata Group, but it retained both the 450 and 800 Mhz spectrums. The 800 Mhz spectrum was with Mobikom which was embroiled in a legal suit during the demerger exercise.
Spectrum sales
A few years ago, the country’s regulator Malaysian Communications and Multimedia Commission (MCMC) made a significant amount of money from selling 3G spectrum in two separate rounds. The first round was done in 2002 and the second round was in November 2005.
The 2.15Mhz 3G spectrum blocks awarded for 15 years was priced at RM50mil each, and the winners were chosen via beauty contest in 2002.
MCMC awarded two blocks of spectrum to TM and Maxis Communications Bhd then in the first round. In May 2005, Celcom (M) Bhd (the mobile arm of TM then) became the first local telco to launch 3G services in Malaysia and Maxis launched its 3G phone service in July the same year.
Subsequently, the regulator opened a second round of 3G bid and awarded it to Time dotCom Bhd and MiTV Corp Sdn Bhd. The price tag for the second round was RM55mil instead of RM50mil, for custody until April 1, 2018. However, if a lump sum payment is made before the spectrum was assigned, the price tag falls to RM50mil (RM45mil in round one).
After several failed bids to win a 3G licence from government tenders, DiGi acquired the 3G spectrum from Time dotCom Bhd in 2008 through a share-swap exercise.
Spectrum allocation has been done in so many ways in the past leaving some players with more spectrum than they need while some are hoping to get more. In the mid 90s, the country saw an industry-wide consolidation.
The Government is currently in consultation with the telecom industry to work out a blueprint on spectrum planning and refarming.
Trial and error
The government had also awarded WiMAX (Worldwide Interoperability for Microwave Access) spectrum in 1997.
MCMC gave out four super high speed Internet access licences to subsidiaries of Green Packet Bhd, YTL e-Solutions Bhd, Asiaspace Sdn Bhd and REDtone International Bhd. The first three are licensed to offer WiMAX service in Peninsular Malaysia, while REDtone’s area of operation is Sabah and Sarawak.
The tender for the WiMAX 2.3 Ghz was initially opened in May 2006 but was subsequently called off as it did not meet the Energy, Water and Communications Ministry’s requirements. The original had attracted bids from 17 telecom operators.
However, in November 2006, the ministry gave the MCMC the go-ahead to evaluate the 17 applications.
The Government did not open any tender for the high-speed broadband (HSBB) project awarded to TM. The HSBB, UniFi was launched early this year.
The RM11.3bil project, signed in September 2008, is a public-private partnership agreement between TM and the Government to develop next-generation HSBB infrastructure and services for the nation. TM is forking out RM8.9bil while the Government is co-investing RM2.4bil on an incurred claims basis based on project milestones reached by TM.
The most recent is the allocation of the 2.6GHz spectrum a block of 20MHz to nine players meant for 4G. Likewise, no tender was called for this spectrum. The conditions of these awards, including fees, locations within the band are still unclear as the operators are to submit respective business plans to MCMC.
So far, only two players – REDtone International Bhd and Maxis Bhd – announced their plans to submit a detailed business plan to MCMC for the 4G spectrum.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7274789&sec=business
By LEONG HUNG YEE
hungyee@thestar.com.my
DO you remember the brick size mobile phone?
Some of you may ask what is a brick phone. Well, it was a term used frequently to call those black box phones in the early 80s. The early brick phones earned their name from their size and shape as big as a house brick. They were bulky and huge with fat antennas, a far cry from the slim mobile phones today.
The calling
The birth of cellular telephony began in the 1980s in Malaysia, when NMT 450 (Nordic Mobile Telephone) standard was introduced by Telekom Malaysia Bhd, (TM) with its analogue Atur 450 network, operating on a 450 MHz band.
It was reported that the initial investment cost about RM50mil to set up a network of five mobile exchanges and 954 radio channels.
It was the first mobile communication service in the country, but the handsets those days were huge and capacity of the network was small.
TM was the dominant player for cellular phone services for almost five years. From one operator, the numbers swelled as the Government dished out more licences.
The ETACS (extended total access communications system), was introduced by Cellular Communications Network (M) Sdn Bhd (Celcom) in 1989. Its ART 900 analogue service was launched in 1989, and the phones were relatively smaller. ART900 operates on the 900 MHz frequencies operating with the 010 prefix.
However, due to some business considerations, TM sold its 900 MHz analogue system to the Alpine Resources Sdn Bhd in 1989, which later changed its name to Technology Resources Industries Bhd (TRI).
Setting the stage
In 1993, the Government announced that it would award licences to two more operators. Subsequently, TM invested in a stake in Mobikom Sdn Bhd, which operated the Mobifon 800 network – a dual mode analogue and digital system operating in the 800MHz band.
Mobikom is a consortium formed by TM, Edaran Otomobil Nasional Bhd, PNB Equity Resource Corp Sdn Bhd and Sapura Holdings Sdn Bhd, and Ananda Krishnan’s privately-held Binariang Sdn Bhd (known as Maxis today).
TM subsequently acquired the remaining shares in Mobikom, that it did not already own, from others making Mobikom a wholly-owned subsidiary of Telekom Malaysia in 1998.
In 1994, the Government announced the award of three more personal cellular network (PCN) systems to Electronic and Telematique (M) Sdn Bhd, a subsidiary of Sapura Holdings Bhd; MRCB Telecommunications and Mutiara Telecommunications Sdn Bhd (better known as DiGi).
A year after, the Government decided to set start the ball rolling for a consolidation for the crowding celluar industry. It was reported that at that point, there were nine telecommunication players, with various licences under their stable.
With so many licences dished out earlier, the industry became fragmented and had to be consolidated.
As a result, TM moved to acquire MRCB Telecommunications Sdn Bhd, operator of the Emartel cellular network in 1996. The move sparked further consolidations in the industry.
TM went on to buy two other cellular operators, Mobikom Sdn Bhd in 1998, and Celcom in 2003.
By 1996, there were several operators, but now, there are only three main operators – Celcom, DiGi.Com Bhd and Maxis Bhd after rounds of consolidation in the industry.
TM got out of the cellular business in 2008 in a demerger exercise. Its cellular business were hived off to Axiata Group, but it retained both the 450 and 800 Mhz spectrums. The 800 Mhz spectrum was with Mobikom which was embroiled in a legal suit during the demerger exercise.
Spectrum sales
A few years ago, the country’s regulator Malaysian Communications and Multimedia Commission (MCMC) made a significant amount of money from selling 3G spectrum in two separate rounds. The first round was done in 2002 and the second round was in November 2005.
The 2.15Mhz 3G spectrum blocks awarded for 15 years was priced at RM50mil each, and the winners were chosen via beauty contest in 2002.
MCMC awarded two blocks of spectrum to TM and Maxis Communications Bhd then in the first round. In May 2005, Celcom (M) Bhd (the mobile arm of TM then) became the first local telco to launch 3G services in Malaysia and Maxis launched its 3G phone service in July the same year.
Subsequently, the regulator opened a second round of 3G bid and awarded it to Time dotCom Bhd and MiTV Corp Sdn Bhd. The price tag for the second round was RM55mil instead of RM50mil, for custody until April 1, 2018. However, if a lump sum payment is made before the spectrum was assigned, the price tag falls to RM50mil (RM45mil in round one).
After several failed bids to win a 3G licence from government tenders, DiGi acquired the 3G spectrum from Time dotCom Bhd in 2008 through a share-swap exercise.
Spectrum allocation has been done in so many ways in the past leaving some players with more spectrum than they need while some are hoping to get more. In the mid 90s, the country saw an industry-wide consolidation.
The Government is currently in consultation with the telecom industry to work out a blueprint on spectrum planning and refarming.
Trial and error
The government had also awarded WiMAX (Worldwide Interoperability for Microwave Access) spectrum in 1997.
MCMC gave out four super high speed Internet access licences to subsidiaries of Green Packet Bhd, YTL e-Solutions Bhd, Asiaspace Sdn Bhd and REDtone International Bhd. The first three are licensed to offer WiMAX service in Peninsular Malaysia, while REDtone’s area of operation is Sabah and Sarawak.
The tender for the WiMAX 2.3 Ghz was initially opened in May 2006 but was subsequently called off as it did not meet the Energy, Water and Communications Ministry’s requirements. The original had attracted bids from 17 telecom operators.
However, in November 2006, the ministry gave the MCMC the go-ahead to evaluate the 17 applications.
The Government did not open any tender for the high-speed broadband (HSBB) project awarded to TM. The HSBB, UniFi was launched early this year.
The RM11.3bil project, signed in September 2008, is a public-private partnership agreement between TM and the Government to develop next-generation HSBB infrastructure and services for the nation. TM is forking out RM8.9bil while the Government is co-investing RM2.4bil on an incurred claims basis based on project milestones reached by TM.
The most recent is the allocation of the 2.6GHz spectrum a block of 20MHz to nine players meant for 4G. Likewise, no tender was called for this spectrum. The conditions of these awards, including fees, locations within the band are still unclear as the operators are to submit respective business plans to MCMC.
So far, only two players – REDtone International Bhd and Maxis Bhd – announced their plans to submit a detailed business plan to MCMC for the 4G spectrum.
http://biz.thestar.com.my/news/story.asp?file=/2010/10/23/business/7274789&sec=business
Monday, October 25, 2010
Thursday, October 7, 2010
Dow Jones to launch bandwidth index
By John Borland
April 10, 2000 10:00 PM PDT
Staff Writer, CNET News
Dow Jones plans to create a new commodity index tomorrow dedicated to tracking the rise and fall of telecommunications network bandwidth prices.
The move is another sign that the young market for network capacity is reaching the level of mature markets, such as oil, gas or pork belly futures. The index will be maintained with the help of bandwidth exchange house RateXchange.
Bandwidth exchanges have developed as dozens of new network companies have crisscrossed the United States and the oceans with fast data networks. Companies need access to these data networks quickly, and the old system of signing lengthy contracts after weeks or months of negotiation often doesn't move quickly enough.
The exchanges are designed as neutral swap meets, where companies can sell access to their networks to other companies that need the space quickly and at a market-driven price.
RateXchange is one of several companies that have tried for years to push the concept of a neutral bandwidth market, where big communications companies can buy or sell excess capacity on their networks. Some carriers have resisted the notion, however, loathe to see the billions of dollars they've invested in their networks become a commodity.
Still, the number of new carriers on the market, offering more space on their networks every day, has pushed down the price for bandwidth substantially. Carriers are beginning to test the model, both at RateXchange and at similar services run by Arbinet and Enron Communications, for example.
The Dow Jones index initially will provide prices for three long-haul data routes. Companies will be able to use these figures to peg the changing prices of contracts when they are buying access to networks.
As more carriers put access to their networks into the marketplaces run by RateXchange, Arbinet or others, investors will be able to speculate on the future prices of bandwidth, just as investors in the pork belly or oil futures do today.
"This is the index of the raw material of the new economy," said Ross Mayfield, president of RateXchange. "Finally the industry has evolved to the point where bandwidth trading is a reality."
The index is scheduled to launch May 1.
Read more: http://news.cnet.com/Dow-Jones-to-launch-bandwidth-index/2100-1033_3-239087.html#ixzz11gTce1Gy
April 10, 2000 10:00 PM PDT
Staff Writer, CNET News
Dow Jones plans to create a new commodity index tomorrow dedicated to tracking the rise and fall of telecommunications network bandwidth prices.
The move is another sign that the young market for network capacity is reaching the level of mature markets, such as oil, gas or pork belly futures. The index will be maintained with the help of bandwidth exchange house RateXchange.
Bandwidth exchanges have developed as dozens of new network companies have crisscrossed the United States and the oceans with fast data networks. Companies need access to these data networks quickly, and the old system of signing lengthy contracts after weeks or months of negotiation often doesn't move quickly enough.
The exchanges are designed as neutral swap meets, where companies can sell access to their networks to other companies that need the space quickly and at a market-driven price.
RateXchange is one of several companies that have tried for years to push the concept of a neutral bandwidth market, where big communications companies can buy or sell excess capacity on their networks. Some carriers have resisted the notion, however, loathe to see the billions of dollars they've invested in their networks become a commodity.
Still, the number of new carriers on the market, offering more space on their networks every day, has pushed down the price for bandwidth substantially. Carriers are beginning to test the model, both at RateXchange and at similar services run by Arbinet and Enron Communications, for example.
The Dow Jones index initially will provide prices for three long-haul data routes. Companies will be able to use these figures to peg the changing prices of contracts when they are buying access to networks.
As more carriers put access to their networks into the marketplaces run by RateXchange, Arbinet or others, investors will be able to speculate on the future prices of bandwidth, just as investors in the pork belly or oil futures do today.
"This is the index of the raw material of the new economy," said Ross Mayfield, president of RateXchange. "Finally the industry has evolved to the point where bandwidth trading is a reality."
The index is scheduled to launch May 1.
Read more: http://news.cnet.com/Dow-Jones-to-launch-bandwidth-index/2100-1033_3-239087.html#ixzz11gTce1Gy
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