Business

Wednesday November 11, 2009

Broadband market heating up

By B.K. SIDHU


WiMAX players ramping up efforts to boost connectivity in Malaysia

COMPETITION in the broadband space is building up. Despite the furore created by Packet One Networks (M) Sdn Bhd’s (P1) “Cut Already” advertisements, it did grab some attention.

Rival Telekom Malaysia Bhd has since come up with advertisements showing a man who appears fed-up with his wireless connectivity and is contemplating throwing his modem and laptop out of the window.

There is talk in the market place that P1’s aggressive marketing strategy has helped it gain market share from its rivals, but this could not be verified.

This week, P1’s advertisements have taken a new twist. The company is shouting out loud that its services are now available in more places than before. Well and good if it can expand and ensure there is consistency in coverage and service quality, and not just sign up new users.

But the question to ask is: What are the other three WiMAX players doing?

YTL Communications Sdn Bhd (YTL Com), Asiaspace Sdn Bhd and REDtone International Bhd have been slapped with a RM1.9mil, RM1.7mil, and RM200,000 fine respectively for failure to meet their stimulated targets of 25% population coverage by end-March. But are they in hibernation mode?

REDtone is doing a lot in trying to connect Sabah and Sarawak with WiMAX despite having to work in difficult terrains. It remains hopeful of securing a nationwide WiMAX spectrum like the other three. Asiaspace meanwhile has recently expanded its services to SS2 in Petaling Jaya and is moving to other areas.

YTL Com is expected to launch its WiMAX services in July. The company raised eyebrows yesterday when it formed a cooperation with major telecommunication players – Cisco, Clearwire, Samsung and GCT Semiconductor Inc – to create content and devices for WiMAX.

Globally, WiMAX Forum says there are nearly four million WiMAX subscribers and the numbers are expected to grow significantly as more countries deploy WiMAX.

A report said mobile WiMAX is considered by many as the first true 4G technology, giving customers access to global data, information, entertainment and communication any time, anywhere, with low latency and high-speeds of up to 10 Mbps.

But operators continue to struggle with the technology due to lack of capacity, technology instability, unavailability of devices, interoperability issues, lack of spectrum, and regulatory constraints.

The report said there was a new promise with the WiMAX 802.16m standard, which will be backwards-compatible with 802.16e-2005, and this could provide speeds of up to 120 Mbps downlink and 60 Mbps uplink, according to the IEEE’s IMT-Advanced proposal documents.

There are currently 500 WiMAX network deployments in more than 145 countries, with four in Malaysia. This translates to a coverage of over 430 million people, said US-based Clearwire senior vice president global ecosystem and standards Ali Tabassi. He expects the coverage to reach over 800 million by end-2010.

Clearwire has raised US$3.2bil to build a nationwide network in the United States that will be capable of covering a population of up to 120 million people.

There will be a dramatic change in the way we work, play and learn in Malaysia if YTL Com keeps its promises – to commercially launch its 4G WiMAX services by July next year.

YTL group managing director Tan Sri Francis Yeoh said YTL Com’s offering will be “affordable, world-class quality products and services that improves the way people in Malaysia learn, work and play.”

The company will spend RM2.5bil to provide nationwide coverage from day one, going against the norm of expanding only when there is demand for such services.

They believe in economics of scale and this fast track initiative will ensure consumers in Jeli or Kota Marudu will get access to YTL Com’s services the same day an urbanite gets it in Kuala Lumpur. If achievable, it will thrust Malaysia in the forefront of the broadband sphere.


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