USP In Malaysia: Past, Present & Future The Malaysian Communications and Multimedia Commission Story

UZER TAJUDIN

Head, Rural Development Division Malaysian Communications and Multimedia Commission (MCMC)

20 MAY 2014

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UNIVERSAL SERVICE PROVISION (USP)

USP

OBJECTIVE

PRIORITIES IMPLEMENTATION

LEGISLATION FUNDING

collective access to basic telephony service and Internet access services followed by individual access for both services

• by designated service providers based on USP Regulations

• in underserved areas & underserved groups within communities

USP Regulations 2002; (Amendment in 2003, 2005, 2008)

by USP Fund

to provide communication access to target underserved areas, localities, and groups within a community

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USP EVOLUTION

PERIOD USO/USP PROVIDER INSTRUMENTS

Before Telecommunication Department

(JTM)

JTM as a Government central agency in planning and implementing universal service

1991 Syarikat Telekom Malaysia

Berhad

Corporatized Government agency with monopoly and licence conditions

1998 Telekom Malaysia Berhad (TMB) Privatised entity with licence conditions

1999 Telekom Malaysia Berhad

A Determination TRD 006/98. TMB is a default USP provider but cost is shared by 5 licensed telecommunications operator

Beyond 2002

By Designation through tender process

New USP Determinations No 2 of 2001

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2003 – FIRST USP PROJECT

Basic Telephony

Individual & Collective lines

(payphone)

Broadband Access to Library USP Communications Centre

To provide broadband access up to 1 Mbps at selected libraries

To provide the center with broadband access up to 1Mbps at

suitable premises

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USP BASIC TELEPHONY TECHNOLOGY Fixed GSM

CDMA System FTTS System House Phone

Public Payphone

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USP VSAT TECHNOLOGY

Pilot USP Communications Centre in Julau

Service Providers Technology

Telekom Malaysia Fiber optic, copper cable, VSAT and CDMA

Celcom Fixed GSM System

TTdotCom Wireless Broadband Access/VOIP

eB Technologies Wireless Broadband Access/VOIP

DiGi Fixed GSM

NasionCom Fixed Mobile Satellite Phone (ACES)

Maxis Mobile Fixed GSM System

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USP TECHNOLOGY

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USP LEGISLATION

• Gazetted on 17 October 2002

• Setting up of the USP Fund

• Identification of universal service targets based on Fixed services

• Gazetted on 30 October 2003

• New definition on USP target areas which were previously limited to existing service providers within the particular target USP areas only

• Gazetted on 1 April 2005

• Change of Applications Service Provider (ASP) licence from individual to class

• Gazetted on 1 August 2008

• New definition of underserved area

• Include new services:

• Broadband access

• Public cellular access

Communications and Multimedia Act 1998 (CMA98) (s.202, s.203 & s.204)

USP Reg. 2002 Amendment 2003 Amendment 2005 Amendment 2008

Ministerial Direction on USP:

Minister may directs the Commission to establish a system for implementing USP program

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USP AMENDMENT 2008

Disadvantages (2003 – 2007)

Focus on basic telephony & Internet

access service

Unsuitable technology selection and service

provider

Less promotion and awareness

Only annual claim payment

To improve USP Fund mechanism that serves the

USP objectives

Cabinet direction to utilize USP fund for national broadband

projects

To achieve 50% national household broadband

penetration rate in 2010

Rationale of amendment

Underserved districts only

Proposed Amendments (2008)

To include broadband access and public cellular access

To include major contributor for implementing USP projects

To allow the universal service providers to quarterly claim the operating expenses

To allow the funding for content development

To allow the claim for promotional, awareness, training and audit fees costs

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People with Disabilities

Children under Protection

Women under Rehabilitation

People living in low-cost housing area

Any area where the penetration rate for

broadband subscribers in Malaysia is below the national broadband

penetration rate

Underserved Groups Underserved Area

Broadband Access Public Cellular PSTN

Any area with a population density of 80

persons per square kilometer or less, or where public cellular

services are not sufficiently available

Any area where the PSTN subscribers’ penetration

rate is 20 % below that of national PSTN

penetration rate

“Underserved Area” is defined from the perspectives of network and application services i.e. PSTN, Broadband Access & Public Cellular

“Underserved Groups” being groups of people in served areas that do not have collective and/or individual access to basic communications services

[USP Regulations 2002 & (Amendment) 2008]

UNIVERSAL SERVICE TARGET

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USP INITIATIVES

2003

2007

2009

2010 • Wireless Village • Netbook • Internet Centre (Urban) • WiFi Hotspot (Urban) • SKR1M

• Time 3

• Internet Centre (Rural) • Broadband Library

• Payphone

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Rebranding

CBL Internet Centre

Profiling

Urban Poor Rural

Connectivity & Speed

Tower Fiberization

Recipient

One type of telecentre i.e. PI1M Improve coverage, tower fiberization, LTE, FTTH &

submarine cable

Focus area and groups, content & applications Service coverage, lower price, improve QoS

Wi-Fi Hotspots Device Bundle

BROADBAND ACCESS ENHANCEMENT

Fi

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1Malaysia Internet Centre 2

00

7

550 Planned

427 Completed

Community Broadband Library 2

00

7

99 Planned

99 Completed Wireless Village

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11

5,000 Planned

4,711 Completed

Telephony

20

02

89 Districts

Public Cellular

20

09

1,000 Planned

748 Completed

Netbook

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1.68m Allocated

1,136,000 Distributed

USP ACHIEVEMENTS

Figures as at 30 April 2014

Mini Community Broadband Centre 20

10

120 Planned

120 Completed

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2007 Pilot 12 CBCs

2008 Phase 1 73 CBCs

2009 Phase 2 89 CBCs

2009 Phase 3 72 CBCs

2010 Phase 4 5 CBCs

2012 Phase 5 36 CBCs

2013 Phase 6 137 CBCs

2014 Phase 7 100 CBCs

(planned)

FRO

M R

UR

AL TO

UR

BA

N P

OO

R

Infrastructure Human Capital

Development

Monitoring Awareness

Content Applications

Sustainability

IMPLEMENTATION COMPONENT

CBC : EVOLUTIONARY APPROACH

Urban Poor

Total CBC members as at 30/4/2014 – 357,440 members

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WAY FORWARD FOR SUSTAINABILITY

Content

Applications

Children Adults

Product Services

Rural Urban

Focus Group

Zoning

Type

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A NEW CBC CONCEPT

Hub & Spoke Every centre will have 5 WiFi Hotspot

in the surrounding areas

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RAN SHARING CONCEPT

MSC

BSC/RNC

BSC/RNC (SP Time 3)

BSC/RNC

BSC/RNC

T3 Site2

Fiber Optic Cloud

T3 Site1

MSC

MSC

• To provide 2G and 3G services from 3 Public Cellular Networks

• To serve minimum of 1000 subscribers

per site for 2G network and 1 sector carrier for 3G network ;

• Public Cellular Network Providers can save the initial network construction investment, accelerate network construction speed, increase the initial coverage and attract more users in the new service provided areas.

RAN Sharing

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ROLLOUT CHALLENGES

Rural areas are often remote and lower income levels

Geographical dispersion of population

Hilly terrain and dense trees area

Availability of proven technology to effectively connect rural areas

Technology limitation - distance, coverage due to LOS/NLOS system,

CPE need power supply to operate etc

High costs to rollout

Unavailability/Unstable electricity supply

Difficulties to acquire suitable sites for wireless solution

Low take-up rate

Billing and payment issues

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EARLY VICTORIES

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CONCLUSION

MCMC

Service Providers State Agencies

Consumer

• Manage USP Fund • Designate Service Provider • Briefing State Agencies • Monitor Implementation • Verify & Pay claims

• Pay to USP Fund • Submitted USP Plan • Implement projects • Claim from USP Fund

• Point of Information • Liaisons:

State Secretariats District Office Community leaders

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USP MICROSITE

Collection of Success Stories

USP Microsite

USP Tender Notices

USP Projects

http://usp.skmm.gov.my/

http://usp.skmm.gov.my/Projects/Telephony.aspx

http://usp.skmm.gov.my/Information/Notices-(1).aspx

http://usp.skmm.gov.my/Success-Stories/Overview.aspx

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USP PUBLICATIONS

Internet Centre Brochure

Wireless Village Brochure

http://usp.skmm.gov.my/uspskmmgovmy/media/General/KTW1M-Feb-2014_1.pdf

http://usp.skmm.gov.my/uspskmmgovmy/media/General/PI1M-Feb-2014_1.pdf

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USP PUBLICATIONS

USP Online Bulletin

USP Annual Report

http://usp.skmm.gov.my/Resources/Annual-Reports.aspx

http://usp.skmm.gov.my/Resources/Publications.aspx

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River Ranger http://www.youtube.com/watch?v=SxxdmwSXHK

M

Kapok Pillow Maker http://www.youtube.com/watch?v=l8CBGhzyBd4

Seaweed Farmer http://www.youtube.com/watch?v=1fzBAyNXGvw

VIDEOS ON SUCCESS STORIES

THANK YOU

For more information, please go to usp.skmm.gov.my