ICT Issue

One of the nation ICT issue is about the slow roll out of broadband especially in Sabah and Sarawak rural areas. According to the National Broadband Plan, 50% of the population must have access to high-speed Internet connections by year 2010 but penetration is lingering at the 26% mark now. Due to their isolated locations, these under served areas were largely being bypassed by telecommunications companies that preferred the more profitable urban areas.

As we know, high-speed broadband networks are a platform supporting innovation throughout the economy today in much the same way electricity and transportation networks spurred innovation in the past. New innovations such as smart electrical grids, telemedicine, intelligent transportation networks, interactive learning and cloud computing will require fast communication networks to operate efficiently. Thus it is important for the country to have the high-speed Internet connection especially at the rural areas.

Many governments especially the developed country including Malaysia have stepped in to fill the gap using stimulus funds to pay for new broadband networks. But there has been significant debate about whether these investments make economic sense, particularly as governments are entering into an area which has recently been entrusted to the private sector. But Malaysia has go beyond of this border since the launch of the MSC (Multimedia Super Corridor).

Currently, there are four company known as Packet One Network Sdn Bhd, Y-Max Networks Sdn Bhd, Asiaspace Sdn Bhd, and Redtone International Bhd assigned by the government to provide WiMAX (Worldwide Interoperability for Microwave Access) broadband services to under served areas and groups in the country. However due to lack of financing in those state, these four company have not fully accomplished the government mission to have the high-speed Internet connection in rural areas.

Telecommunication companies have been investing to upgrade their older copper and coax cables to new fiber lines which have vastly larger capacity but the economic crisis has threatened to halt this investment just when consumers and businesses are using more Internet bandwidth. Telecommunication investment largely mimics GDP (gross domestic product) growth but in a more exaggerated way.