More broadband proposals surface

PETALING JAYA: Last year cable manufacturer Optical Communication Engineering Sdn Bhd (OCE) submitted a concept paper to the Government, suggesting a larger part of the existing infrastructure be used to roll out high-speed broadband (HSBB) in Peninsular Malaysia at a price tag of RM3bil.

OCE believed that a large part of the existing fibre infrastructure could be put to better use and help the country save billions of ringgit.

The price quoted was based on estimates that nearly half the equipment needed would be supplied by the company’s plant. The RM3bil did not include last-mile connectivity.

While OCE was in the midst of talks, the Government went ahead to announce that Telekom Malaysia Bhd (TM) would undertake the HSBB. This was done in September 2007 and it was via direct selection with no tender bid called.

OCE chief executive officer Robin Wong, when contacted, confirmed that such a paper was submitted.

“We are still waiting for a response from the relevant authorities. Our concept is about rolling out 3,000 points in the peninsula, each point able to link 1,000 to 8,000 customers,” he told StarBiz.

Today, Wong is still interested in participating in the building of a HSBB network.

He is not alone. Of late, many more proposals have sprung up despite TM being scheduled to sign the agreement (after two postponements) with the Government on Sept 16.

Two other hopeful parties are High Speed Broadband Sdn Bhd (HSBT), with a privately funded proposal to link 2.5 million lines at RM18bil, and Dr Mohamed Awang Lah, the CEO of Jaring, with his own proposal to wire up five million premises at RM5bil.

HBST was given a chance, which it bypassed, but now wants another shot.

TM’s proposal is to roll out HSBB to 1.3 million premises at RM11.3bil (from RM15.2bil earlier) and the Government will fork out RM2.4bil for the project.

“With a number of parties interested in playing a role and contributing to the social and economic development of the nation, the Government should perhaps give due consideration, open and objective hearing to their proposals.

“Why shut them out and painstakingly try to craft or pull out answers as if from the magician’s hat in support of the incumbent?” asked an industry expert.

Another expert suggested that it was about time the “Government reviews the whole process that was originally planned by the Malaysian Communications & Multimedia Commission (MCMC) – the open bidding process.

“The MCMC’s process of bidding by consultants in early 2007 was intercepted by TM’s own appointed consultant and that is why MCMC had to abort the exercise.

“The exercise was to come up with a plan for national broadband implementation for tendering out to licencees to submit their proposals. With abundant alternative offerings, perhaps it is a good time to revert to such process.”

All these parties believe there is room for a second network, which should be based on a open-access concept, versus TM’s HSBB privately-owned network, which observers say will offer limited access to other players.

“In a big country there can be multiple backbones, but we are a small country. There should be a common backbone which offers fair and equitable access to all players. The owners of the backbone should not compete at the service level,” Mohamed said.

Since StarBiz carried his story on Thursday on the RM5bil proposal, he said several service providers had voiced their interest.