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May 01, 2006

Keng Yaik’s legacy?

Broadband penetration, local content, and liberalising telco industry


May 1, 2006

Before becoming the Minister of Energy, Water and Communication in 2004, Datuk Seri Dr Lim Keng Yaik manned fort as the Minister for Primary Industries. His tenure took him through the rigorous period of massive development during the late 1980’s and the doldrums of the Asian Financial Crisis. It was his mettle in the palm oil industry that has unquestionably helped ascertain Malaysia’s continued foreign exchange income during those stormy years of the late 1990s. Despite the extended economic gloom, palm oil outshined other commodities in export revenue and provided the country much shelter in managing its fiscal shortfall that seriously impacted the neighbouring countries.

However, sitting in his new ministry where water, energy and communications industries are housed in one, his responsibility tripled. Leaving energy and water industries aside, to what extent is he going to leave behind a legacy that equalled his days spent in primary industries?

Currently, he has a plateful of unresolved issues. Fast-track broadband penetration; propelling the development of content to make broadband pervasiveness relevant; mobile-number portability; faster broadband speeds, operators’ lukewarm response to the registration of prepaid cellular service users. All are in a deadlock. How are to further liberalise the telecommunications industry when the telcos continued to resist the country’s public policies?

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March 03, 2006

The real 3G

Operators shouldn’t repeat the mistakes they did 5 years ago

March 1, 2006


By now, Malaysia would be seeing more than two licensees given the blocks of 3G spectrum to operate the third generation cellular networks, and the market place should see keen competition in play.

The rollout of 3G services in Malaysia is like a jumbo-jet stuck on the runway, lots of power-hype but you don’t see it take off and fly. More than two years had passed after the licensees and blocks of spectrum were issued before Celcom could roll out its 3G services in May 17, 2005, in conjunction with the World Communications Day. Maxis, the market leader for 2G GSM, followed suit and launched its 3G services a month later. However, take-up rate in the last eight months has been lukewarm with less than 100,000 subscribers.

Why didn’t mobile users warm up fast to 3G? Suffice to say, this is not uniquely a Malaysian problem. Apart from Japan, 3G has seen the same lacklustre in Europe and Asia, particularly the region seen as holding the highest market potentials for 3G.

In my radar screen, I noticed two major blunders that caused this slow market up-take. Firstly, the consultants had sold 3G like snake-oil salesmen do their trade. Secondly, the network operators did not understand 3G and its target audience.

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