APAC Policy Perspectives Series 1: Malaysia (Continued)
Home APAC Policy Perspectives Series 1: Malaysia (Continued)

APAC Policy Perspectives Series 1: Malaysia (Continued)

Malaysia: Public Policies and Regulation, Legal and regulatory framework on FTTH/Fiber Networks

Continued from the previous month.

Competition Policy, Infrastructure Sharing

In Malaysia, there are various provisions under the Communications and Multimedia Act 1998 (CMA) to address competition issues. While competition is ex-post, several ex-ante regulations are in place to ensure there is a level playing field in the industry.  For example, MCMC can rely on ex-ante access regulatory framework to regulate facilities and services that have bottleneck characteristics and for long term benefits of end users.  The regulated facilities and services are subject to standard access obligations, which imposes an obligation on access providers to provide access to the regulated facilities and services to access seekers on an equitable and non-discriminatory basis and on reasonable terms and conditions. As a result of ex-ante access regulation, barriers to entry, particularly in the fixed market has reduced significantly. Fixed and mobile operators are now able to compete in both the fixed and mobile markets.

In addition, infrastructure sharing is also regulated under the access framework to encourage and facilitate the efficient use of existing infrastructure to promote downstream competition. Infrastructure sharing included in the access list include sharing of towers and associated tower site (including rooftop space), poles, street furniture, in building common antenna systems, access to central equipment room and ducts and manholes.

Besides ex-ante regulations, the CMA contains competition provisions that amongst others include prohibition on anti-competitive conducts and provisions on dominant position (DP). If a dominant operator abuses its DP and engages in conduct has or may have the effect of substantially lessening competition (SLC), MCMC can issue a direction to the operator to cease the conduct, and to implement appropriate remedies. MCMC has published a Guideline on DP that outlines the Commission’s general approach to the application of DP test under section 137 of the CMA. It identifies some of the factors that the Commission may take into account when assessing whether a licensee is in a DP. In addition, MCMC has issued another Guideline on SLC that outlines the Commission’s general approach to the meaning of SLC. It identifies some of the anti-competitive conducts and the factors that the Commission may take into account when assessing whether a conduct has the purpose or has, or may have the effect of SLC in the market.  

Both ex-ante access and ex-post competition regulations are put in place to ensure network operators are able to compete fairly with each other, which then encourages efficiency, attracts investment, encourage innovation, creates a wider choice for consumers and helps reduce prices and improve quality

Access to Public Assets, Streamlining of Permitting

As the Government has recognized communication services as a public utility since June 2021, several initiative have been undertaken to streamline policies on infrastructure planning and facilitating infrastructure rollout which includes:-

  1. An amendment made to Uniform Building By-Laws (UBBL) 1984 that includes the use of new G20 form approved by Majlis Negeri dan Kerajaan Tempatan / State and Local Governments’ Council (MNKT). The amendment is to ensure the installation of internal communications infrastructure and cabling work is certified by competent stakeholder. This is to ensure the accountability in line with the Communications and Multimedia Regulations (Technical Standards) 2000 and Garis Panduan Perancangan Infrastruktur Komunikasi / Infrastructure Planning Guidelines (GPP-I).
  2. Adoption and implementation of GPP-I which serves to include the requirement for all new development to plan for communication reserves. Through this guideline, it is intended that no new development area is left without digital connectivity.
  • Establishment of State Digital Council or State Infrastructure Committee to facilitate issues on the communication infrastructure development.
  1. Review or establishment a unit to manage utility corridor by State Government in states to standardise the process and fees to hasten the deployment of FTTH network.
  2. Development of relevant technical codes to facilitate the implementation of national initiatives and infrastructure rollout as well as requirements of approval by local authorities, such as:-
  3. Fixed Network Facilities – In-building and External (MCMC MTSFB TC G024:2000)
  4. Basic Civil Works – Part 1: General Requirements (MCMC MTSFB TC G025-1:2022)
  5. Basic Civil Works – Part 2: Open Trench (MCMC MTSFB TC G025-2:2020)
  6. Basic Civil Works – Part 3: Micro Trench (MCMC MTSFB TC G025-3:2020)
  7. Basic Civil Works – Part 4: Horizontal Directional Drilling (HDD) (MCMC MTSFB TC G025-4:2020)

Sources:-

  1. JENDELA Phase 1 (September 2020 – 31 December 2022) Concluding Report

https://myjendela.my/Sitejendela/media/Doc/JENDELA-Phase-1-Concluding-Report.pdf

2. Insight Paper on Digital Connectivity – Ensuring Everyone Get Connected : A Glance at Malaysia’s Digital Connectivity Journey

https://www.mcmc.gov.my/skmmgovmy/media/General/pdf2/Insight-Digital-Connectivity.pdf

Other topics

The success of digital infrastructure implementation is highly dependent on the commitment and contribution from all parties including federal and state governments, local authorities, industry players, private sectors as well as the communities:

  1. Federal Government – The Government of Malaysia has recognised communication services as a public utility and the use of communication infrastructure planning guidelines to ensure no new development areas are left without digital connectivity. The government also facilitates by providing various incentives to the industry and private sector to participate in the digital infrastructure supply chain;
  2. State Government and Local Authorities – facilitate to streamline the processes involved and harmonised infrastructure rollout to shorten deployment timeline for better resources, cost and time efficiency;
  • Industry players – a full commitment to ensure all plans can be completed on time to close the gap in the infrastructure and services across the country;
  1. Private sectors – involve in the digital development ecosystem such as supplying the raw materials and components as well as field and civil works; and
  2. Communities – providing feedback on coverage and quality for continuous digital infrastructure improvement to further improve the quality of user experience. Use of established platform for ICT provided by the government  to address the gap in ICT literacy as well as providing knowledge sharing platform to improve socio-economic level

JENDELA is focusing on the development of digital infrastructure to increase the number of  premises passes with fibre connectivity and to enhance 4G coverage and quality of experience through construction of new 4G towers and upgrading existing base stations. Moreover, JENDELA has implemented Broadband Wireless Access (BWA) via satellite connectivity as an effort to provide broadband access to rural and remote areas. Apart from that, the Point of Presence (PoP) method of fibre optic was implemented to expand the broadband infrastructure network and coverage in areas around schools and populated area to enable the availability of fibre access.

As the Government has recognised communication services as public utility, several initiative have been undertaken to streamline policies on infrastructure planning and facilitating infrastructure rollout which includes:-

  1. Development of the Garis Panduan Perancangan Infrastruktur Komunikasi / Infrastructure Planning Guidelines (GPP-I) which serves to include the requirement for all new development to plan for communication reserve. Through this guideline, it is intended that no new developement area is left without digital connectivity;
  2. The approval of Uniform Building By-Laws (UBBL) 1984 amendment that also incorporates the amendment of G20 form to clarify the requirement for a proficient person to certify the completion of internal telecom cabling works;
  • Development of relevant technical codes encompassing areas such as 5G, network security, infrastructure and network facilities, as well as communications equipment to facilitate the implementation of national initiatives and infrastructure rollout. As of May 2023, 72 technical codes have been registered under the Communications and Multimedia Act 1998 (CMA 1998).
  1. As 5G technology provides services at short-ranges distances and requires massive installation of 5G infrastructure, MCMC with other stakeholders has also drafted a guideline and technical code for minor communication, and infrastructure which also accomodate the requirements for aesthetic installation which intends to facilitate Local Authorities in developing a simplified process specifically for the minor communications infrastructure category;
  2. Establishment of State Digital Council or State Infrastructure Committee to facilitate issues on the communication infrastructure development; and
  3. Establishment of “Special Committee on Standardisation of Communication Infrastructure Development Charges and Fee” to study and propose a mechanism to standardise the cost of charges and fees imposed for the development of communication infrastructure throughout the country.

Source(s):

  1. JENDELA Phase 1 (September 2020 – 31 December 2022) Concluding Report

https://myjendela.my/Sitejendela/media/Doc/JENDELA-Phase-1-Concluding-Report.pdf

2. Insight Paper on Digital Connectivity – Ensuring Everyone Get Connected : A Glance at Malaysia’s Digital Connectivity Journey

https://www.mcmc.gov.my/skmmgovmy/media/General/pdf2/Insight-Digital-Connectivity.pdf

APAC Policy Perspectives Next Series is coming next month.

Stay tuned !

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