Friday April 1, 2011
GEORGE TOWN: Technicians have started to take down rooftop telecommunication antennas of five service providers at the Sungai Nibong’s Crystal Point base station.
The structures, which provide services to Celcom, DiGi, Maxis, P1 and U Mobile users, were switched off yesterday morning before dismantling work began, said a spokesperson of one of the service providers.
“The dismantling process is expected be completed within the next few days.
“This will result in intermittent service disruption which will likely affect customers in Bayan Baru, Bayan Lepas Free Industrial Zone and Sungai Nibong,” she said.
It was reported yesterday that the structures had to be taken down in response to a directive issued by the Penang Municipal Council which was prompted by protests from residents.
The residents feared that electro-magnetic frequencies (EMF) from the telecommunication structures would affect their health.
The spokesperson expressed regret that the structures had to be dismantled, saying that they were put up according to international safety guidelines.
On whether the rooftop antennas would be rebuilt if customers complained of poor call quality, she said future undertakings would only be carried out with council approval.
http://thestar.com.my/news/story.asp?sec=north&file=/2011/4/1/North/8392047
Showing posts with label Regulatory. Show all posts
Showing posts with label Regulatory. Show all posts
Thursday, April 7, 2011
Wednesday, March 16, 2011
Rais: Fair and Transparent Bidding for 700Mhz Spectrum
Wednesday March 16, 2011
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: A fair and transparent bidding process will be the way to award the 700Mhz spectrum in the future, and with that all parties will have a fair chance to bid for it.
However, Information, Communication and Culture Minister Datuk Seri Utama Dr Rais Yatim (pic) said the process for bidding was not ready yet as the Malaysian Communications and Multimedia Commission (MCMC) still had a lot of more work to do. “I have briefed the economic council chaired by the Prime Minister. The decision of the council is that the bidding has to be via a fair system which enables any contender to bid for the 700Mhz spectrum. This gives all contenders the opportunity to make a bid,” Rais Yatim said after witnessing a signing ceremony between U Mobile Sdn Bhd and China-based ZTE Corp yesterday.
The agreement will see U Mobile extending its 42Mbps mobile network in the Klang Valley, Negri Sembilan and the northern region by the second half of 2011 and the installation of Long-Term Evolution (LTE) platforms which has the potential to achieve 100Mbps.
According to MCMC, under Malaysia's National Spectrum Plan, the 700MHz spectrum band was allocated for broadcasting service and not for LTE. The 700MHz spectrum band is vital to the operation of the 4G high-speed wireless network.
Rais said many parties had expressed interest to bid for the 700Mhz spectrum, hence the Government needed to adopt a fair and transparent method in assigning the spectrum.
“In this respect, the MCMC has already been directed to award all broadband spectrum in a fair and more transparent manner,” he said, adding that the requirements had not been set at the moment.
Rais said an announcement would be made later as to when the spectrum would be open for bidding.
He did not disclose the number of companies which had submitted their applications for the spectrum, when asked.
Previously, Prime Minister Datuk Seri Najib Tun Razak was reported to have called for a meeting with key executives of telecommunications operators in a move to defuse a spat over the 700Mhz spectrum issue.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/16/business/8276687&sec=business
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: A fair and transparent bidding process will be the way to award the 700Mhz spectrum in the future, and with that all parties will have a fair chance to bid for it.
However, Information, Communication and Culture Minister Datuk Seri Utama Dr Rais Yatim (pic) said the process for bidding was not ready yet as the Malaysian Communications and Multimedia Commission (MCMC) still had a lot of more work to do. “I have briefed the economic council chaired by the Prime Minister. The decision of the council is that the bidding has to be via a fair system which enables any contender to bid for the 700Mhz spectrum. This gives all contenders the opportunity to make a bid,” Rais Yatim said after witnessing a signing ceremony between U Mobile Sdn Bhd and China-based ZTE Corp yesterday.
The agreement will see U Mobile extending its 42Mbps mobile network in the Klang Valley, Negri Sembilan and the northern region by the second half of 2011 and the installation of Long-Term Evolution (LTE) platforms which has the potential to achieve 100Mbps.
According to MCMC, under Malaysia's National Spectrum Plan, the 700MHz spectrum band was allocated for broadcasting service and not for LTE. The 700MHz spectrum band is vital to the operation of the 4G high-speed wireless network.
Rais said many parties had expressed interest to bid for the 700Mhz spectrum, hence the Government needed to adopt a fair and transparent method in assigning the spectrum.
“In this respect, the MCMC has already been directed to award all broadband spectrum in a fair and more transparent manner,” he said, adding that the requirements had not been set at the moment.
Rais said an announcement would be made later as to when the spectrum would be open for bidding.
He did not disclose the number of companies which had submitted their applications for the spectrum, when asked.
Previously, Prime Minister Datuk Seri Najib Tun Razak was reported to have called for a meeting with key executives of telecommunications operators in a move to defuse a spat over the 700Mhz spectrum issue.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/16/business/8276687&sec=business
Sunday, November 28, 2010
Implementation of New Public Cellular Phone Numbering With 3 Plus 8
The Malaysian Communications and Multimedia Commission (MCMC) has announced on the 1st October 2010 that a new mobile prefix “011” has been opened to be shared by the mobile telephone operators. This prefix is the first three numbers followed by the eight-digit telephone number and also known as 3 + 8 Public Cellular Phone Numbering. The decision to open a new shared prefix “011” is one of the measures to accommodate the public cellular service providers’ additional requirement for numbers. Through another announcement made by MCMC on the 2nd November 2010,a briefing was held at MCMC Headquarters which was attended by industry members,regulatory bodies, the media, consumer forums and interested parties.The briefing sought to enhance participants understanding of the new public cellular numbering system.
The new public cellular phone numbering will take off with the prefix-011 followed by eight digit numbers (011 1XXX XXXX), set to be launched on 15 December 2010. This is one of the long-term planning measures undertaken by MCMC after taking into consideration that the existing public cellular phone numbering format of 3 + 7 is running out and will not be able to support and accommodate the demands from the industry in the near future. However, these additional allocations will not a replacement to the existing prefixes for public cellular numbers that are currently in use, such as 010, 012, 013, 014, 016, 017, 018 and 019. The accompanying seven digit subscriber numbers used with these prefixes will continue to be used.
This new implementation is also a result of the increase in the number of cellular service providers and the potential of various service applications which will be made available due to the advancement of communication technologies.
The prefix 011 is intended to be shared by all the existing service providers to provide additional new mobile numbers to be shared by the operators under one common dialing prefix.
Sources : http://www.skmm.gov.my/
The new public cellular phone numbering will take off with the prefix-011 followed by eight digit numbers (011 1XXX XXXX), set to be launched on 15 December 2010. This is one of the long-term planning measures undertaken by MCMC after taking into consideration that the existing public cellular phone numbering format of 3 + 7 is running out and will not be able to support and accommodate the demands from the industry in the near future. However, these additional allocations will not a replacement to the existing prefixes for public cellular numbers that are currently in use, such as 010, 012, 013, 014, 016, 017, 018 and 019. The accompanying seven digit subscriber numbers used with these prefixes will continue to be used.
This new implementation is also a result of the increase in the number of cellular service providers and the potential of various service applications which will be made available due to the advancement of communication technologies.
The prefix 011 is intended to be shared by all the existing service providers to provide additional new mobile numbers to be shared by the operators under one common dialing prefix.
Sources : http://www.skmm.gov.my/
Wednesday, October 27, 2010
A pool of views
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
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
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
Friday, September 17, 2010
Cellular/wireless companies in M'sia don't have to pay billions others pay, yet service is bad
Friday September 17, 2010
THE cellular/wireless players in this country are a lucky lot.
They don’t have to pay billions of dollars for a spectrum which their counterparts globally do. What they do is ride on the spectrum and earn huge margins. Their margins are among the highest in Asia if not the world.
The next wave of spectrum awards will be happening soon. This time it is for long-term evolution (LTE). This is said to be the fourth generation of cellular technology or 4G.
Bet your last dollar that there will be no bidding process, no hefty payment for the spectrum, only a token sum and nine local companies are likely to get bite-sized of 20Mhz each of the 2.5G/2.6G piece of this prized commodity.
Kudos to them, yet many have all the excuses for bad quality of service.
In the cellular world thus far, there are four defined generations of cellular technology. 1G was all analog, 2G was digital but speeds ware slow and data limited.
That’s when we first got the taste of SMS. Then came the 2.5G which gave slightly higher data capacity and speed.
The much-hyped 3G allowed for downstream rate of 2 megabits per second and more.
Voice was the killer application for the first few generations of cellular networks.
But data traffic has overtaken voice traffic and this trend is only going to accelerate, growing exponentially with widespread adoption of wireless broadband networks and smart devices.
4G is about higher speed and bigger capacity. The requirement for 4G is said to be peak data rate of 100Mbps for high-mobility applications such as mobile access.
About 1Gbps is required for low mobility applications such as nomadic/local wireless access and all should be Internet protocol-based solutions.
That means that the new 4G networks will allow users to stream mobile multimedia, such as TV broadcasts and online games, with speeds of up to 10 times higher than today’s third-generation, or 3G, networks.
This time around the government wants to be fair to all wireless and cellular players by dishing out spectrum to nine players, comprising four WiMAX and four cellular players and a new entrant, a company linked to billionaire Tan Sri Syed Mokhtar Al-Bukary.
With the 4G spectrum the players should have no reason to complain of being left out of the next generation of technologies.
Getting the spectrum is one thing, but putting it to good use is another.
In the past spectrum had been awarded in many ways with political patronage not excluded. Some players lobbied intensely for the spectrum only to sell it off for a handsome gain, while others had to be rescued. There are some that hoard and a few had been deprived of the spectrum, but there are also others that have helped changed the landscape of mobile broadband in the country.
It is good that the government is giving many more players a chance to have the 4G spectrum and it may not impose a huge fee so that players will not pass the spectrum cost to the users.
The idea is to make it easy for the players to roll out services so that they can serve the rakyat better and, hopefully, the players will not forget that in their quest to earn higher margins.
Deputy news editor B.K. Sidhu wishes all Malaysians a belated Happy 1Malaysia Day.
http://biz.thestar.com.my/news/story.asp?file=/2010/9/17/business/7046601&sec=business
They don’t have to pay billions of dollars for a spectrum which their counterparts globally do. What they do is ride on the spectrum and earn huge margins. Their margins are among the highest in Asia if not the world.
The next wave of spectrum awards will be happening soon. This time it is for long-term evolution (LTE). This is said to be the fourth generation of cellular technology or 4G.
Bet your last dollar that there will be no bidding process, no hefty payment for the spectrum, only a token sum and nine local companies are likely to get bite-sized of 20Mhz each of the 2.5G/2.6G piece of this prized commodity.
Kudos to them, yet many have all the excuses for bad quality of service.
In the cellular world thus far, there are four defined generations of cellular technology. 1G was all analog, 2G was digital but speeds ware slow and data limited.
That’s when we first got the taste of SMS. Then came the 2.5G which gave slightly higher data capacity and speed.
The much-hyped 3G allowed for downstream rate of 2 megabits per second and more.
Voice was the killer application for the first few generations of cellular networks.
But data traffic has overtaken voice traffic and this trend is only going to accelerate, growing exponentially with widespread adoption of wireless broadband networks and smart devices.
4G is about higher speed and bigger capacity. The requirement for 4G is said to be peak data rate of 100Mbps for high-mobility applications such as mobile access.
About 1Gbps is required for low mobility applications such as nomadic/local wireless access and all should be Internet protocol-based solutions.
That means that the new 4G networks will allow users to stream mobile multimedia, such as TV broadcasts and online games, with speeds of up to 10 times higher than today’s third-generation, or 3G, networks.
This time around the government wants to be fair to all wireless and cellular players by dishing out spectrum to nine players, comprising four WiMAX and four cellular players and a new entrant, a company linked to billionaire Tan Sri Syed Mokhtar Al-Bukary.
With the 4G spectrum the players should have no reason to complain of being left out of the next generation of technologies.
Getting the spectrum is one thing, but putting it to good use is another.
In the past spectrum had been awarded in many ways with political patronage not excluded. Some players lobbied intensely for the spectrum only to sell it off for a handsome gain, while others had to be rescued. There are some that hoard and a few had been deprived of the spectrum, but there are also others that have helped changed the landscape of mobile broadband in the country.
It is good that the government is giving many more players a chance to have the 4G spectrum and it may not impose a huge fee so that players will not pass the spectrum cost to the users.
The idea is to make it easy for the players to roll out services so that they can serve the rakyat better and, hopefully, the players will not forget that in their quest to earn higher margins.
Friday, May 21, 2010
Spectrum auction the way to go
Friday May 21, 2010
Friday Reflections - BY B.K. Sidhu
MALAYSIA should consider auction of spectrum in the future.
India just netted a cool US$14.6bil from its 3Ghz spectrum auction two days ago. It has also plans to auction the 4Ghz spectrum.
Several years ago some governments in Europe netted several billion dollars each for auctioning 3G spectrum.
Spectrum allocation in Malaysia in the past has been done in so many ways with political patronage not excluded. That also explains why some players are hogging more spectrum than they need while there are others hoping to get more.
The journey of spectrum award began many years go when frequency was awarded for broadcasting of TV and radio, the UHF and VHF as well as satellite broadcasting. In the mobile world the old Atur network began over three decades ago and it was running on the 450 band.
Then came the GSM and PCN 1800 standards. In early 2000, the 3Ghz spectrum was given out via a beauty pageant-like contest, which means the best man with the best business plan wins.
The regulator has also awarded a host of other spectrum including 2.5Ghz, 2.3Ghz and last year, the 10.5Ghz for mobile backhaul and wireless local loop. Next is 4Ghz.
To make sure there is better spectrum management in the future the regulator has come up with a draft spectrum plan. With the plan, the regulator is a bit like “stargazing” as to what is needed for the future by the players. It wants feedback so that it can twig the plan.
We are a bit late in crafting the comprehensive spectrum plan, it should have been done at least two years ago. Re-farming is a must for efficiency spectrum planning and several blocks will be up for grabs in due time.
Why go for auctions?
It is adopted globally, it can be a money spinner for the Government and only serious players get into the game. It will do away with political patronage provided of course the whole process is transparent.
There should not be “behind the scenes price fixing'' and the final word should that be of the regulator and there should be no room for “over-riding of decisions'' made by the commission.
Of course, the process also marks the start of life under a pile of debt for the companies that put in high bids to secure the spectrum and this could strain their balance sheets for years. There is also fear that all this will drive up prices for consumers.
But let's look at how Europe has done it where consumers still get fair value packages. There are pros and cons but auctions is a viable option.
For a country that thrives to be in the forefront of technology the spectrum plan is vital. More important is the way the spectrum will be awarded as that will determine if fairness prevails and whether there really is a level playing field.
● Deputy news editor B.K. Sidhu says reading parts of the 280-page document was a trying experience.
http://biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6309209&sec=business
Friday Reflections - BY B.K. Sidhu
MALAYSIA should consider auction of spectrum in the future.
India just netted a cool US$14.6bil from its 3Ghz spectrum auction two days ago. It has also plans to auction the 4Ghz spectrum.
Several years ago some governments in Europe netted several billion dollars each for auctioning 3G spectrum.
Spectrum allocation in Malaysia in the past has been done in so many ways with political patronage not excluded. That also explains why some players are hogging more spectrum than they need while there are others hoping to get more.
The journey of spectrum award began many years go when frequency was awarded for broadcasting of TV and radio, the UHF and VHF as well as satellite broadcasting. In the mobile world the old Atur network began over three decades ago and it was running on the 450 band.
Then came the GSM and PCN 1800 standards. In early 2000, the 3Ghz spectrum was given out via a beauty pageant-like contest, which means the best man with the best business plan wins.
The regulator has also awarded a host of other spectrum including 2.5Ghz, 2.3Ghz and last year, the 10.5Ghz for mobile backhaul and wireless local loop. Next is 4Ghz.
To make sure there is better spectrum management in the future the regulator has come up with a draft spectrum plan. With the plan, the regulator is a bit like “stargazing” as to what is needed for the future by the players. It wants feedback so that it can twig the plan.
We are a bit late in crafting the comprehensive spectrum plan, it should have been done at least two years ago. Re-farming is a must for efficiency spectrum planning and several blocks will be up for grabs in due time.
Why go for auctions?
It is adopted globally, it can be a money spinner for the Government and only serious players get into the game. It will do away with political patronage provided of course the whole process is transparent.
There should not be “behind the scenes price fixing'' and the final word should that be of the regulator and there should be no room for “over-riding of decisions'' made by the commission.
Of course, the process also marks the start of life under a pile of debt for the companies that put in high bids to secure the spectrum and this could strain their balance sheets for years. There is also fear that all this will drive up prices for consumers.
But let's look at how Europe has done it where consumers still get fair value packages. There are pros and cons but auctions is a viable option.
For a country that thrives to be in the forefront of technology the spectrum plan is vital. More important is the way the spectrum will be awarded as that will determine if fairness prevails and whether there really is a level playing field.
● Deputy news editor B.K. Sidhu says reading parts of the 280-page document was a trying experience.
http://biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6309209&sec=business
Malaysia to allocate bandwith for 4G
Friday May 21, 2010
By B.K. SIDHU
bksidhu@thestar.com.my
MCMC draws up spectrum plan
PETALING JAYA: The telecom's industry regulator has come up with a draft spectrum plan in which it proposes to re-farm several blocks of frequency including those in the 850 Mhz, 900 Mhz and 2.5 Ghz bands.
Those in the know say that the 900 Mhz and 2.5 Ghz spectra may be allocated for 4G services sometime next year. But it is not clear what the plan is for the 850 Mhz.
“The 900 Mhz band can be used for wider reach while the 2.5 Ghz is good for capacity since demand for broadband services is growing in the country,'' said a source.
Mobility, fast speed and bigger bandwidth services is pushing greater usage of spectrum. Convergence of telecoms, broadcasting and information technology has also made managing radio frequency spectrum much more complex.
Spectrum is also a scarce resource, so having a plan for future spectrum allocation and assignment is necessary to make it easier for service providers to know what spectrum is available for their own planning.
Re-farming is a way to free up spectrum of an age-old technology that is not used or a frequency that may not have been fully developed and re-assign it where demand is huge.
This is also the first time the regulator, Malaysian Communications & Multimedia Commission (MCMC), has come up with such a comprehensive spectrum plan. It has posted the draft on its website for public feedback.
Some industry players contacted said it was a good move but they needed more time to read the entire document, which is 280 pages, to comment on it.
For now some players have more spectrum than others. There are other players that want more spectrum but have not got it while some other newer players have not been able to get spectrum. The spectrum plan hopes to address all that and potentially open up new avenues for others to come in.
DiGi.Com Bhd chairman Sigve Brekke said the company was hoping to get more spectra and was still in talks with the regulator on it.
“From a fairness point, have a regulated industry where all players have equal frequency allotted on equal frequency bands so that there is a level playing field,'' he said.
In the draft document, MCMC said that “due to greater demand for broadband services, several spectrum bands had been identified to be re-farmed in the near future. It cited the 450-470 Mhz, 790-960 Mhz, 1,710-1,885 Mhz and 2,500-2,690 Mhz frequency bands as potential candidates for re-farming.''
Refarming also does not mean that the regulator will forcibly take back spectrum allocated to players especially those it wants to refarm. All spectrum awards have a tenure period. Since the regulator may be awarding several 4G spectra and is likely to use the 2.5G spectrum, it will look into the tenures of these spectra before allocating it accordingly, said a source.
The draft plan also identifies the need to review blocks allocated for fixed and backhaul, short-range devices, radio frequency identification systems, and private/public mobile radio or walkie-talkie.
Other industries such as defence, the police force, fire brigade, ambulance and maritime enforcement agency also use spectrum for radio communications.
Broadcasting is an area extensively covered in the draft as the shift from analogue to digital terrestrial TV will take place in 2015. The new digital broadcasting technologies not only allow for more efficient use of radio spectrum and support users' demands for mobility but are also changing traditional methods of watching TV.
This process will require more spectra and the commission in the draft said it was looking at various new technologies such as digital terrestrial TV, digital sound broadcasting and digital multimedia.
“That is why spectrum management is vital and the draft hopes to address a lot of spectrum requirement for the future,'' the source said.
http://biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6308397&sec=business
By B.K. SIDHU
bksidhu@thestar.com.my
MCMC draws up spectrum plan
PETALING JAYA: The telecom's industry regulator has come up with a draft spectrum plan in which it proposes to re-farm several blocks of frequency including those in the 850 Mhz, 900 Mhz and 2.5 Ghz bands.
Those in the know say that the 900 Mhz and 2.5 Ghz spectra may be allocated for 4G services sometime next year. But it is not clear what the plan is for the 850 Mhz.
“The 900 Mhz band can be used for wider reach while the 2.5 Ghz is good for capacity since demand for broadband services is growing in the country,'' said a source.
Mobility, fast speed and bigger bandwidth services is pushing greater usage of spectrum. Convergence of telecoms, broadcasting and information technology has also made managing radio frequency spectrum much more complex.
Spectrum is also a scarce resource, so having a plan for future spectrum allocation and assignment is necessary to make it easier for service providers to know what spectrum is available for their own planning.
Re-farming is a way to free up spectrum of an age-old technology that is not used or a frequency that may not have been fully developed and re-assign it where demand is huge.
This is also the first time the regulator, Malaysian Communications & Multimedia Commission (MCMC), has come up with such a comprehensive spectrum plan. It has posted the draft on its website for public feedback.
Some industry players contacted said it was a good move but they needed more time to read the entire document, which is 280 pages, to comment on it.
For now some players have more spectrum than others. There are other players that want more spectrum but have not got it while some other newer players have not been able to get spectrum. The spectrum plan hopes to address all that and potentially open up new avenues for others to come in.
DiGi.Com Bhd chairman Sigve Brekke said the company was hoping to get more spectra and was still in talks with the regulator on it.
“From a fairness point, have a regulated industry where all players have equal frequency allotted on equal frequency bands so that there is a level playing field,'' he said.
In the draft document, MCMC said that “due to greater demand for broadband services, several spectrum bands had been identified to be re-farmed in the near future. It cited the 450-470 Mhz, 790-960 Mhz, 1,710-1,885 Mhz and 2,500-2,690 Mhz frequency bands as potential candidates for re-farming.''
Refarming also does not mean that the regulator will forcibly take back spectrum allocated to players especially those it wants to refarm. All spectrum awards have a tenure period. Since the regulator may be awarding several 4G spectra and is likely to use the 2.5G spectrum, it will look into the tenures of these spectra before allocating it accordingly, said a source.
The draft plan also identifies the need to review blocks allocated for fixed and backhaul, short-range devices, radio frequency identification systems, and private/public mobile radio or walkie-talkie.
Other industries such as defence, the police force, fire brigade, ambulance and maritime enforcement agency also use spectrum for radio communications.
Broadcasting is an area extensively covered in the draft as the shift from analogue to digital terrestrial TV will take place in 2015. The new digital broadcasting technologies not only allow for more efficient use of radio spectrum and support users' demands for mobility but are also changing traditional methods of watching TV.
This process will require more spectra and the commission in the draft said it was looking at various new technologies such as digital terrestrial TV, digital sound broadcasting and digital multimedia.
“That is why spectrum management is vital and the draft hopes to address a lot of spectrum requirement for the future,'' the source said.
http://biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6308397&sec=business
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