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Telcos given 6 months for full coverage.

Telecommunication companies are given a six-month deadline beginning May 1 to have a 100 per cent coverage of Kuala Lumpur, Putrajaya and Cyberjaya areas, Energy, Water and Communication Minister, Datuk Seri Dr Lim Keng Yaik said Friday.

The service providers are also given until the end of 2005 to give full coverage throughout the nation, he told reporters after launching Time dotCom’s Wireless Enhanced Broadband Internet Service or Webbit, here.

“There are about 11 million mobile phone users in Malaysia and how many of them are totally connected in the country?” he said, adding that even Kuala Lumpur, Putrajaya and Cyberjaya are not well connected.

“I do not want to see any blind spots in these areas,” Dr Lim said. To provide full coverage, the Minister said the service providers could either build new transmission towers, domestic inter-roaming or share transmission towers.

“If not, let others build the transmission equipment and force the service providers to use it with a price,” he said.

Currently, there are three telecommunication service providers in Malaysia namely, Maxis, Celcom and DiGi.

Dr Lim said the service providers needed to further invest in base stations in order for the people to use the services.

He said he has spoken to the Malaysian Communications and Multimedia Commission (MCMC) on the issue. MCMC chairman Datuk V. Danapalan was present at the function.

Dr Lim said if the suggestion was not taken seriously by telcos, he would seek MCMC’s and drastic actions could be taken.

Asked whether the telco’s would be fined or their licences revoked, he said it would be a combination of both or otherwise.

“I leave it to the regulator to talk to them and recommend to me the best solution,” he said. He said that the Cabinet had been pressuring the Ministry on the issue in many of the its meetings.

However, this deadline does not apply to wireless broadband service providers as the users are very little but warned that such problems should not prevail.

Dr Lim said the Ministry would come up with a pricing benchmark for new service providers who need to use the current telecommunications infrastructure.

“We need to have a balance between those who put in the infrastructure and those who are interested to use it,” he said.

He said the Ministry was keeping track with those Internet service providers as there were so many now.

“They get the money upfront but don’t provide the service. We have to regulate this,” he added.

On the progress of information and communications technology (ICT) industry, he said overall it had been satisfactory.

“However, if we look into the current subscription of broadband services by Malaysians, there is still much to be done in terms of access and consumer use of the available technology,” he said.

Based on the statistics by the MCMC, as at end of February 2004, there were only 125,547 Malaysians subscribing to broadband services and the penetration rate was only at 0.5 per cent, which is far behind compared to Singapore and South Korea.

As of June 2003, the penetration rate based on total households Singapore was 31 per cent while South Korea the penetration rate was 75 percent. “This is a major challenge in view that broadband technology is an enabler that can propel our country’s economic progress,” he said.

Broadband technology enables multiple applications both for individual and business use. These include using voice over broadband, Internet, television or video and audio applications.

For businesses, broadband technology offers among other things, web hosting, e-mail hosting and Files Transfer Protocol facilities, he said.

Hence, he urged telecommunication companies to take proactive steps so as to enable the general public to readily adapt to this latest technology.

He said TIME’s Wireless Broadband Access service, or Webbit, was viewed as one of the key elements in penetrating the broadband market, as it provided an alternative solution effectively.

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