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Malaysia to Get HighSpeed Broadband.doc
Malaysia to Get HighSpeed Broadband
The government will fund 30% of the proposedmultibillion project, which will be built by TelekomMalaysia
Malaysias Deputy Prime Minister Najib Tun Razaklast week unveiled plans to embark on an ambitiousinitiative to roll out high-speed broadband servicesacross the country. The government official alsorevealed that incumbent fixed-line carrier TelekomMalaysia
(TM) has been awarded the megabroadband project.
Targeted to cover 2.2 million premises, the projectis estimated to cost 15.2 billion ringgit (US 4.46billion) over 10 years, Najib was quoted to say in localnews reports.
We have asked the Finance Ministry to verify thefigure, which includes the cost of last-mile fiber,core network and Iimprovements tol internationalconnectivity, Najib told local reporters.
State-owned TM has been directed to start initialwork on the project, though deployment of the physicalinfrastructure is likely to come only six months after thepartnership agreement has been signed. Thegovernment is targeting to ink the agreement as soonas possible, Najib said.
The countrys deputy premier explained that theCabinet Committee on Broadband, which he heads,chose to partner TM because the telco already ownsan existing infrastructure. This, he said, would allowadditional investment to be done on a lower cost basisand at a faster speed.
We want the Inew high-speed broadbandiservice to be rolled out quickly and in a cost-efficientmanner, so that Malaysia would not be left behind interms of competitive edge, he added.
Najib left open the possibility for other telcos to geta dip in the project, though he noted that the role ofthese industry players would only be determined later.
STUDYING THE COST
According to local reports, the government hadcommissioned consultant firm McKinsey Co. toconduct a feasibility study, which estimated that aninvestment of 15 billion ringgit (US4.4 billion) wouldbe required to ay fiber-opt
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