MCMC Annual Report - 2008

Suruhanjaya Komunikasi dan Multimedia Malaysia,Off Persiaran Multimedia, 63000 Cyberjaya, Selangor Tel: 6 03 86 88 80 00 | Fax: 6 03 86 88 10 00 E-mail: [email protected].
my | Web: www. skmm.gov.my | 1-800-888-030
ANNUAL REPORT
Diversified culture, united towards communication excellence
000 Table of Contents

001 002 003 003 004 006 016 026 030 Statutory Requirement National Policy Objectives Vision/Mission Statement Core Values Clients Charter Chairmans Message Commission Members Senior Directors A Snapshot of Statistics on Communications & Multimedia Activities 095 096 097 099 100 100 101 Rates Monitoring SKMM Complaints Bureau Consumer Issues Prepaid Registration Phishing Network Security Centre Enforcement
001
01 Speeding Up the Growth of ICT

034 036 037 037 037 038 038 042 044 045 048 051 Progress Report for Broadband (MyICMS 886) 2008 TMs Undertakings Application of the Regulatory Framework for High-Speed Broadband Network Economic Indicators on Broadbands Benefits to the Nation Indicators for Broadband Take-up Report on QoS Compliance on Broadband Services Managing Communications Infrastructure Promotion of Local Content Development and NCDG Establishment of R&D Initiatives Under Digital Home Implementation of U-Library Digital TV Mobile Number Portability (MNP)
05 Upholding National
Culture & Identity
Content Regulation 106
06 Channeling Equal Access

to ICT Services
112 112 USP Fund USP Projects in Bridging Digital Divide
07 Enhancing ICT Ethics

and Excellence
120 121 123 125 Consumer Forums Activities Content Forums Activities Report on Technical Standards Forum Report on Access Forum
08 Enhancing Postal
128 Postal Services
Services Standards
02 Ensuring Communications
056 058 058 059
Integrity & Excellence
Categorisation Market Supervision Services Accessibility Implementation of WiMAX Services
09 Accelerating Growth
132 International Affairs
Through Global Partnerships
03 Responding to New
064 066 072 081 081 085
10 Delivering Better Performance

for Greater Effectiveness
138 140 Human Capital Development IT Strategic Review
Emerging Technologies
Spectrum Management Strategic Review (SMSR) 2007/2008 Spectrum Research Collaboration Spectrum Assignment and Management NASMOC and Spectrum Engineering and Interference Resolution Spectrum Co-ordination Numbering
Statutory Requirement
In accordance with Section 47 of the Malaysian Communications and Multimedia Commission Act 1998, the Malaysian Communications and Multimedia Commission hereby publishes a report that entails the activities of the Commission and has submitted it to the Minister of Information, Communications and Culture together with a copy of its Audited Financial Statements of the Malaysian Communications and Multimedia Commission Fund for the Year Ended 31 December 2008 to be laid before both Houses of Parliament.
SKMM Annual RePort 2008
11 Building 1Malaysia Through

144
ICT Convergence
Corporate Highlights
12 Maintaining Transparency
148
04 Expanding Digital Reach

092 093 095
and Good Governance

Governance and Audited Financial Statements
Nationwide Mobile Coverage: Time 1/Time 2 Projects Quality of Service Required Application Service (RAS)
002 National Policy Objectives

We shall endeavour to fulfill the 10 National Policy Objectives for the communications and multimedia industry as enunciated in the Communications and Multimedia Act 1998:
1. To establish Malaysia as a major global centre and hub for communications and multimedia information and content services; 2. To promote a civil society where information-based services will provide the basis of continuing enhancement to quality of work and life; 3. To grow and nurture local information resources and cultural representation that facilitate the national identity and global diversity; 4. To regulate for the long-term benefit of the end-user; 5. To promote a high level of consumer confidence in service delivery from the industry; 6. To ensure an equitable provision of affordable services over ubiquitous national infrastructure; 7. To create a robust application environment for end users; 8. To facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and national assets; 9. To promote the development of capabilities and skills within Malaysias convergence industries; and
003 Vision
To become a globally competitive, efficient and increasingly selfregulating communications and multimedia industry generating growth to meet the economic and social needs of Malaysia.
Mission
We are committed to: a. Promoting access to communications and multimedia services; b. Ensuring consumers enjoy choice and a satisfactory level of services at affordable prices; c. Providing transparent regulatory processes to facilitate fair competition and efficiency in the industry; d. Ensuring best use of spectrum and number resources; and e. Consulting regularly with consumers and service providers and facilitating industry collaboration.
Core Values
Authoritativeness Integrity Competence
10. To ensure information security and network reliability and integrity.
004 Clients Charter

Our undertaking to our clients are: General Consumers
Recording all complaints received Acknowledgement to complainant within three working days Forward complaint received to relevant service provider within five working days Follow-up on status of complaint from service provider after 15 days
005
Licencees
Promote fair competition and market development through transparent regulatory processes as outlined in the CMA 1998 Provide resolutions to disputes when necessary Promote effective regulation by monitoring all significant matters relating to the performance of its licencees and reporting to the Minister at the end of each financial year Review the Rules & Regulation every three years or as and when directed by the Minister. This is to ensure that the Rules & Regulation remain relevant
Assignment Applicants
Apparatus Assignment (AA)
60 days to process the AA application subject to the Licence Committee meeting, border co-ordination by FACSMAB, JTC and Trilateral (Malaysia, Singapore and Indonesia) meetings and approvals
Number Assignment
30 days to process normal assignment applications e.g. PSTN Numbering Application 45 days to process special assignments e.g. mobile, short codes
Licence Applicants
60 days from receipt of complete application to process NFP, NSP and CASP licence applications and to recommend to the Minister for approval 45 days from receipt of complete submission to process NFP and NSP class licence registrations 30 days from receipt of complete submission to process ASP class licence registration
006 Chairmans Message
007
The Malaysian Communications and Multimedia Commission celebrates its 10th Anniversary on 2008 as the regulator of the communications and multimedia industry in Malaysia and the implementor of the Communications and Multimedia Act 1998-an Act which has played an integral role in the convergence of the communications and multimedia industry, as well as in the nations growth as a technologically-competent and economically-competitive nation.
Overview of the Communications and Multimedia Industry in 2008 Key Growth Indicators in Communications and Multimedia
Over the ten years since the Communications and Multimedia Act 1998 was implemented, the total gross revenue of this industry grew four times over, from RM12.0 billion in 1999 to RM40.8 billion as at the end of 2008. The revenue has contributed to 6.1% (2007 : 5.9%) of the total Gross Domestic Product (GDP) of the country and approximately 8.3% (2007 : 7.7%) of the Gross National Product for 2008. The industry has grown tremendously over the last ten years, with the value of the communications [and transportation] sub-sector growing almost 240% from 1999 to 2008, giving a compound average growth rate (CAGR) of 13.02% per annum. Even during the apex of the world economic crisis and in a relatively volatile and variable market of 2008, the communications and multimedia industry was able to expand growth and achieve a market capitalisation of RM48.5 billion or 7.3% of the total Bursa Malaysia market capitalisation (2007 : RM69.5 billion or 6.7% (after delisting of Maxis from Bursa Malaysia Stock Exchange). No doubt the communications and multimedia industry is important for the nations growth, not only for the investment and revenue it generates but also for the manufacture of goods and provision of services that it creates besides shaping the competitive landscape of a nation. Since the implementation of the Communications and Multimedia Act 1998s regulatory framework, the communications and multimedia industry has achieved marked progress from many different aspects. Among those developments include the proliferation of a number of private-sector telecommunications, television and radio service providers. In the period of 2000 - 2001, 87 licences have been issued forth where 20 licences were network facilities provider, 19 were network service providers, 18 were content application service providers and 30 were application service providers. By the end of 2008, the number of licences issued has multiplied many times over - 79 network facilities provider, 86 network service providers, 23 content application service providers and 401 application service providers. As evidenced by the value of the industry and number of licencees, this sector has indeed contributed to and facilitated the economic development of the country. the ten-year period of convergence, this path towards cellular mobile connectivity continued at full speed as consumer demands changed towards mobility and multi-functionality of their telephones. In 2008, Mobile Number Portability (MNP), which is the ability to change ones service provider without changing the number, also enhanced consumers choice over cellular mobile services available to them. Nationwide telephony coverage was also expanded to cover rural areas. In 2008, under the direction of the Minister to further expand cellular coverage nationwide, a new programme known as Time 3 was introduced, with the objective of increasing national population cellular coverage to 97% by 2010. The Time 3 programme is targeted at extreme rural areas and villages with a population density of below 80 persons per square kilometre. Key target areas include Felda, Felcra, plantations, Orang Asli settlements, new tourist spots and significant federal highways. The announcement of the programme was made by the Minister during the opening of the USP Technology Symposium in Seremban on 12 June 2008. Back in 1997, the total mobile phone subscribers was only 2.46 million which gave a modest mobile penetration rate of only 11%. In 2008, the cellular penetration rate rose many times over to 96.8%, comprising 27.6 million subscribers.
Datuk Dr. Halim Shafie

Chairman, Malaysian Communications and Multimedia Commission
Telephony Connectivity
The gradual substitution of fixed-line telephone subscriptions by cellular mobile telephone subscriptions is an overriding trend in most countries which have a developed telephony infrastructure and network. Over
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Broadband Connectivity
What have we achieved in terms of broadband connectivity within the ten years of convergence? Over the last six years, the number of broadband subscribers in Malaysia increased from 19,000 in 2002 to 1.4 million in 2008. In terms of household penetration, broadband increased two-fold from 11% in 2006 to 21.1% as end of 2008. Subscriber base has extended from simple voice and SMS services in the 1990s to the growth of more data services in the advent of 3G and increased wireless access through WiFi hotspots in the mid 2000s. The upward trend in statistics indicates that the increase in demand is driven by the publics increasing awareness of the importance of access to broadband services. 2008 can be seen as a landmark year for the implementation of the National Broadband Plan. The strategy as proposed through the Cabinet Committee on Broadband (CCB) is for nationwide broadband implementation to achieve 50% household penetration by 2010. In May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first covering High Speed Broadband (HSBB) of selected areas of more than 10 Mbps and the second being Broadband for General Population (BBGP) with speeds of up to 2 Mbps. On 15 September 2008, the Government and Telekom Malaysia Berhad (TM) agreed to work jointly on the first category covering HSBB Project, and will be realised through a Public-Private Partnership (PPP) arrangement between the Government and TM. Hence, all systems are geared towards achieving the 50% household penetration target by 2010 and getting Malaysia connected.
Broadcasting in Malaysia
2008 marked a crucial turning point for the broadcasting industry in Malaysia with preparation towards digital television (TV) crossover. The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform is still in analogue format and in line with the development of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and set an analogue switch-off date of 2015. As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda was placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010. The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services, beginning with the rollout of trials in 2006. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the countrys National Policy Objectives on communications and multimedia. The traditional boundaries of broadcasting continue to blur as content is offered over both analogue and digital platforms. Malaysians have been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005. During the year in review, the broadcasting sector which comprises four free-to-air privately-owned TV stations under the Media Prima Berhad Group, two Government-owned free-to-air TV stations and one Direct-to-Home satellite TV operator, ASTRO in total had a combined revenue of RM3.8 billion as at end of 2008 as compared to RM3.3 billion in 2007, indicating a growth of 15.2% from last year. A major contributor of the broadcasting sector revenue is Advertising Expenditure (Adex) which grew from RM5.5 billion in 2007 to RM 5.8 billion in 2008, a growth of about 5.5%.
vendors, and so on). The Government allocated a budget of RM1 million under the RMK-9 budget for the implementation of Projek Usahawan Pos Mini Luar Bandar (PUPMLB), intended for the rural areas. 105 suitable locations have been approved. 64 new mini post offices were successfully opened nationwide. 21 are operating in Felda settlements. In 2008, the number of courier licencees increased to 113 from 109 and the industry is set to become more competitive as the players set to increase service level through business transformation and higher utilisation of technology. The Postal and Courier Services sector contributed about RM0.9 billion in 2008 towards the countrys GDP.
in 2007 continued in 2008 to improve the Commissions ability to acquire, create, use and retain talents. The adoption of a Strategy Focused Organisation (SFO) as a principal theme for organisational capacity and capability development in 2008 successfully paved the way for a more deliberate management of Key Performance Indicators (KPIs), focusing on areas relevant to the core objectives of the Commission. The combined theme of the Strategy Focused Organisation (SFO) and Process Improvement would be the focus of the organisational development programmes of the Commission for 2009. These are supported by performance measurements tools such as the Balance Scorecard approach which guided us to view organisational performance from multiple dimensions, with emphasis on inter-linkages between strategy planners, decision-makers and strategy implementers. Just as how SKMM expects performance from its staff, it also recognises the need to nurture and develop its human capital. With this in mind, a centre of excellence in the form of the SKMM Academy was established with the aim of intensifying efforts in learning, training and enhancing expert capacity; thus to create a work force within SKMM that is authoritative, competent and admired by the industry.
The Year 2008 in Review Organisational Transformation

No doubt the landscape and ecosystem of the communications and multimedia industry have changed considerably over the last ten years of SKMMs existence and implementation of the CMA 1998 regulatory framework. We are dealing with technology and services, and its very usefulness and existence is synonymous with change. The defining change factor for the communications and multimedia industry is the convergence of technology and services. It is with these dynamic characteristics of change and convergence that SKMM has embarked on an organisational transformation to meet the everchanging landscape of the industry. The change management programmes in 2008 endeavoured to break new grounds in providing SKMM with enhanced capacities and capabilities to deal with the challenges brought about by a dynamic and uncertain external environment. In particular, the Organisational Transformation initiatives that commenced
Postal and Courier Services

The Post Office and Mail Delivery network is an essential infrastructure for economic growth whereas the courier and express delivery service industry plays a major role in providing the domestic and international connections crucial for business to develop, to serve various markets besides maintaining supplies. 2008 saw the Commission enforcing the mandatory performance service standard for domestic mail services with effect from 1 August 2008 in its efforts to improve the standard of services of mail delivery in terms of speed and reliability. The Post Office network is extensive and has expanded with more than 688 post offices and more than 6,300 postal channels (Pos Mini, postal agents, stamps
Strengthening Corporate Governance

For a regulatory body such as SKMM, governance is fundamental as its actions and decisions would have significant impact on the stakeholders. The principles of good governance is ingrained in the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998 where the role and functions of SKMM are defined, whereas the Communications and Multimedia Act (CMA) 1998 establishes the framework for regulating the communications and multimedia sector. The principle of transparency which underpins good corporate governance is the hallmark of the regulatory
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governance, facilitate information sharing and contribute to industry development. Concurrently, it will also create an IT architecture framework process that is easy to manage and monitor as well as improve the quality, integrity and availability of SKMMs data. Various deployment strategies and plans will be rolled out based on the proposed IT Strategic plan in various stages for 2009 and 2010. This is to ensure SKMM has an integrated Information Infrastructure, Enterprise Business Application and Knowledge Management that are all well connected and collaborated to meet SKMMs vision and mission for the next five years. the development of eight essential infrastructures, both hard and soft. These new services and infrastructure are aimed at generating growth in six areas that have been identified as key for the consumers and businesses in Malaysia. The MyICMS 886 Strategy acts as the catalyst of development in those areas from 2006 until 2010. The availability and access to broadband which is implemented through the National Broadband Plan, is the main area of development under the MyICMS 886 Strategy. As mentioned before, the target proposed through the Cabinet Committee on Broadband, is to achieve 50% household penetration rate by the end of 2010. On 15 May 2008, the Government announced its twopronged plan of extending broadband penetration throughout the nation, namely the implementation of the High Speed Broadband (HSBB) which will deliver up to 10 Mbps to selected areas across the country, and Broadband to the General Population (BBGP) with speed up to 2 Mbps. Four months later, on 16 September 2008, the Government entered into a public-private partnership agreement with Telekom Malaysia Berhad (TM) for the implementation of the HSBB project. The total cost of the HSBB project is RM11.3 billion for the period of ten years, with the Government contributing RM2.4 billion for the first three years whilst TM has undertaken to invest RM8.9 billion during the ten-year duration. The HSBB project will cover the Klang Valley, industrial areas nationwide and the Iskandar Malaysia development area; in other words the high economic impact areas. The National Broadband Plan is implemented and monitored through the Integrated Project Management Office chaired by SKMM and which reports to the Steering Community on Broadband chaired by then Ministry of Energy, Water and Communications and from 2009 onwards by the Ministry of Information, Communications and Culture. No doubt the benefits of having HSBB has now become a necessity rather than a luxury as the world becomes more connected through the Internet and economic transactions are done on-line. The countrys competitive edge depends on such high-speed delivery of connectivity. However, let us not forget the other thrust of the National Broadband Plan which will have far reaching consequences in meeting the 50% household penetration target; that is the BBGP plan that gives emphasis on the attractiveness and affordability of the general population to own broadband access in their homes. BBGP areas include underserved areas throughout the nation in terms of broadband access services and underserved groups within a community. BBGP areas on the Universal Service Provision (USP) areas and implementation with its main objective to bridge the digital divide between the have and have not communication and multimedia services areas. BBGP is not something new. We had drawn up a new framework for the implementation of BBGP under the National Broadband Plan since 2007 for underserved areas. The project involves implementation and set-up of an initial 85 Community Broadband Centres and 105 Community Broadband Library Centres across the country that are now fully operational and serving the respective communities where they are found. An additional 89 locations are in the process of implementation in 2009. More importantly, the BBGP projects have begun to bear fruit. We have received positive feedback in terms of its implementation and usefulness of the facilities to the community where each is located. To ensure effective usage of the facilities and avoid under utilisation, we have hired on-site full-time supervisors to run awareness and training programmes. In the long-term, SKMM is confident that this effort will help narrow the digital divide and encourage the growth of a knowledge-based society throughout the nation as envisioned under the MyICMS 886 blueprint Apart from the BBGP initiatives implemented in the USP areas, SKMM also prioritised the provision of collective universal service access for basic telephony as well as Internet over individual access. This is to ensure that the target uneconomical areas are provided with communications services through means of widespread community access to such services. Throughout 2008, SKMM set its focus into developing broadband community access centres (or USP Broadband Community projects) where promotion, awareness, marketing, and ICT enrichment training on information and communications technologies (ICT) took place in support for social service delivery to deserving communities.
Operational Relevance
framework in the CMA 1998. The principle of openness is clearly embedded in the CMA 1998 such as public inquiry and consultation channels with the stakeholders on matters of significant interest to the public or licencees. The sound governance mechanism provided in the CMA 1998 is aimed to give confidence to the stakeholders in SKMMs decisions and ensure that they have a full understanding of how SKMM implements Government policies and how these would contribute towards industry growth and consumer protection. Based on the Commissions role, the need to maintain its operational independence and protect its reputation, SKMM subscribes to three basic values, namely authoritativeness, integrity and competence (AIC). Apart from strengthening its internal capacity through the process of transformation, we have also implemented an organisation-wide Integrity Plan and Clients Charter to ensure that the principle of transparency cuts across all levels of the organisation. Internal controls were enhanced and improved upon through the set-up of an Internal Audit Department. The internal auditors, who report directly to the Internal Audit Committee of the Commission, ensured that recommendations to improve internal audit controls were followed through by the Management. They will continue with their assessment of the sufficiency of the internal control systems from time to time based on the approved internal audit plan. All these are implemented with a view to enhance authoritativeness, ensure integrity and improve competency of SKMM in weathering the challenges of regulating the sector.
Broadband to the Nation

With efforts at strengthening internal capacity and corporate governance through organisational transformation well underway, SKMM is focused and poised operationally to meet the 10 National Policy Objectives on communications and multimedia for the country. It is apt that after ten years of convergence and after four years of its implementation, we revisit the underlying aims of MyICMS 886; the main blueprint for the progress of ICT in Malaysia. MyICMS 886 or the Malaysian Information, Communications and Multimedia Services 886 Plan was conceived in 2006 as a catalyst and strategy that would enhance the existing plans and programmes for the development and promotion of ICT in Malaysia. It is an initiative driven by the private sector and supported by a strong Government policy, regulatory and institutional framework support in its implementation. The MyICMS 886 Strategy targets eight service areas to drive Malaysia in the provision of advanced information, communications and multimedia services. The introduction of the eight service areas, in turn, catalyses and promotes
Content Development as a Catalyst for Broadband Take-up

It is recognised that infrastructure deployment alone is not enough for the adoption of broadband. Content development is recognised as a critical success factor for broadband take-up under the National Broadband Plan; consumers and end-users are more interested in what broadband can deliver to them rather than the framework in which it operates. At the same time, it has generated excitement and entrepreneurship in the communications and multimedia industry. With such development and activities in mind, the Government approved the establishment of a National Content Development Fund or known as NCDG in short which was launched in 2007 with an initial start-up grant of RM20 million. At the end of 2008, the fund size was increased to RM50 million proving the Governments commitment towards encouraging content entrepreneurship or contentpreneurs who have the potential to participate and contribute to the growth of the nations economy.
Enhancing Organisational Efficiency

In line with rapid technology advancement and to meet the dynamics of the communications and multimedia industry, which in itself focuses on the technology and the efficient delivery of services, we have mapped out an overall SKMM Information Technology/Information Systems (IT/IS) Strategic Plan Blueprint to support the vision and mission of SKMM. The overall objectives of the IT/IS Strategic Plan are to provide a common and shared IT Enterprise Platform to enhance public service levels, support improved decision-making process, improve industry
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markets that are characterised by the monopoly of a few players (oligopoly) such as in Malaysia, prices tend to be high and the supply of services and facilities can be controlled easily, resulting in bottlenecks in the upstream markets or downstream markets or both. As a result, service providers can price their products at prices above what would be set in a competitive market. The rate control mechanism is normally employed in the above situation to ensure rates or tariffs are not artificially inflated or do not contain excessive economic rents (price is above the price that would be set in a competitive market) and that prices charged are fair and reflect underlying costs. Telecommunications is a vital service for most organisations, whether engaged in services or manufacturing. Fair and low prices are considered necessary to ensure the competitiveness of economic activities in these sectors. In a globally-competitive environment, it is therefore imperative that the cost of telecommunications services is competitively priced so that local providers of services and products can compete with those in other countries. The Rates Rules 2002 sets out the prescribed level of rates to be charged for specified applications services. The rules covering the range of service charged and activities that comes under the Rates Rules 2002 including charges for Internet access services, as well as for telephony, cellular and data services. In 2008, service providers have complied with Section 197 of the CMA 1998, covering the rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to its customer, normally on the websites, media advertisements, brochures and also through their customer service hotlines. One of the channels of consumer contact has been the SKMM Consumer Complaints Bureau (CCB) which acts as a focal point to deal with public complaints In 2008, 4,289 complaints were received, this being almost double the 2,147 complaints received in 2007. The types of complaints ranged from poor service, connectivity or coverage, billing disputes, SMS scam or fraud, spam and unsubscribed mobile content, online, television, radio, SMS and e-mail content as well as radiation and telecommunication tower issues, and illegally-installed satellite television dishes. Based on analysis of the complaints received, several actions were identified to help improve consumer protection for communications and multimedia users and these are outlined in the Good Consumer Practice (GCP) guidelines that was launched and issued to the industry service providers through the Consumer Forum on 9 December 2008. All these combined with other Consumer Protection programmes such as the pre-paid mobile service registration, anti-phishing, enhancing 999 services and others. SKMM also receives complaints on offensive, obscene and misleading content through the CCB. All complaints are processed and evaluated against the CMA 1998, pertinent licence conditions, the Content Code and other regulations. In the case of Internet complaints, they are reviewed according to Section 233 of the CMA 1998, based on the nature of the content, evidence of intent and whether there are local elements in the content. Complaints which do not fall within the ambit of the CMA 1998 are forwarded to the relevant authorities or agencies for further action. SKMM received a total of 259 complaints in 2008, a nearly three-fold increase from 95 complaints received in 2007. Complaints relating to Internet websites surged in 2008, representing 83% of total complaints for the year compared to 47% in 2007. One of the reasons for the increase was increased awareness initiatives undertaken by the Commission to publicise the complaints procedure. The new media especially the Internet is becoming more ubiquitous to the Malaysian culture as we become a connected society. New media content is a term that refers broadly to content that can be accessed through channels other than the traditional mediums of television and radio. The falling costs of accessing the Internet, affordability together with an increase in broadband penetration, a plethora of devices have collectively accelerated the development and consumption of new media content. Whilst we are keen to promote a connected society and a healthy on-line lifestyle that will eventually contribute towards a higher penetration in broadband, there is widespread concern regarding the social impact of the online environment and the mobile lifestyle. Of particular concern is the quality of content that is being accessed and the need to protect the young generation from such offensive or prohibited content. Towards a better understanding of new media, SKMM established the Research Collaboration on New Media Content between SKMM and Institutions of Higher Learning. Research information will provide the Commission with valuable information and insight for the formulation of strategies and policies for effective development and regulation of new media content. The Research Collaboration programme was launched in April 2008 and embarked on its maiden projects with four private and public universities. The programme is open to all private and public local universities and the process of award of research grants will be conducted annually. The development of new media services and online media has prompted a shift in media regulation. The proliferation of social media online has provided amateurs and end-users with the facilities and tools to create their own content, so much so that social media and user-generated content are ever advancing its share of Internet traffic, globally. Traditional statutory regulation and its legal framework, especially in its practical application, is no longer able to adequately take on the tasks of ensuring consumer protection and quality of content. In recognition of this, SKMM realises that the public must be involved in efforts to regulate content and content applications services effectively. Self-regulation has become a vital component in its regulatory approach, co-existing and complementary to statutory regulation.
One of the objectives of the NCDG is to encourage and promote multiple platforms that use content using convergence technology or 360 degree content applications; that is technology that can be used on many different platforms and channels such as in theatres, television, computers and laptops and certainly on cellular mobile phones.
Focus on the Consumer

At the same time that HSBB infrastructure is enhanced and deployed, and content and end-user applications are further developed, we have also turned our attention to the consumers of broadband to ensure that their rights are not neglected. The Mandatory Standards for Quality of Service (QoS) for Broadband Access Service is the instrument used to ensure compliance of service providers to minimum standards for broadband access service. It was enforced with effect from 1 January 2008 and consists of 14 standards of service requirements. Service providers are required to submit their network performance reports every six months to SKMM based on the QoS Mandatory Standards. As more broadband service providers enter the broadband service market and more services are offered, SKMM may then review and revise the QoS in consultation with relevant stakeholders, namely the consumers of broadband. SKMM also maintains a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Dial Up and PSTN. As at end December 2008, SKMM had finalised the submission of tenders to perform the assessments for Cellular, Broadband Dial Up and PSTN services by reputable consultants. The assessment exercise will be performed in 2009. Consumers interest and protection was also enhanced through the Communications and Multimedia Rates Rules 2002. Rate regulations are normally driven by consumer protection and economic reasons. In
regarding service providers offerings. Since it was launched in August 2007, the number of complaints received has increased tremendously. From early January 2008, CCB started using the Aduan SKMM on-line complaint management system to record and update status of complaints and reporting. The CCB provides several channels for consumers to lodge their complaints; a 1800 hotline number, email, letter, fax and even walk-in complaints handling. In May 2008, the Aduan SKMM complaint system http://aduan.skmm.gov.my was opened to the public for online submission of complaints. It has since become one of the main channels for the public to lodge complaints. In 2009, consumers would also be able to lodge complaints through short messaging system (SMS) through the cellular mobile phones. The CCB handles complaints and queries lodged by consumers with regard to the provision of the communications and multimedia services by the licencee service providers. It also serves as an additional channel for consumer complaints to be addressed complementing the existing consumer complaints mechanism implemented by the Consumer and Content Forum and the service providers respectively.
Strengthening Enforcement
SKMMs constant monitoring has contributed towards the increase of more effective enforcement action. This helps ensure the rights of the licencees, investors, consumers and the public are always protected and the confidence in the communications and multimedia industry are maintained at all times. In 2008, 403 cases were investigated by SKMM for various offences under the CMA 1998, three cases under PSA 1991 and two cases under DSA 1997. Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees. 23 offenders were charged in court and 107 were offered compounds amounting to RM1,498,600 for various offences committed. Aside from enforcement actions, in 2008, SKMM with the co-operation of the major licencees successfully
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of this review is on stimulating the level of competition in the broadband market. In this, SKMM adopted a forward-looking approach and considered the newer technological developments such as the high-speed broadband network and WiMAX. In considering the high-speed broadband network, SKMM ensured that the review is consistent with the regulatory framework to be applied to the TM HSBB as stated in the Ministerial Direction on HSBB and Access List. As a result of considering all relevant factors stated in the Ministerial Direction on HSBB and Access List, two new services, High Speed Broadband Network Services with Quality of Service and High-Speed Broadband without Quality of Service, were included in the Access List. In addition, SKMM also implemented Full Access, Sub-loop, Line Sharing and Bitstream Services (collectively also known as Unbundling of Local Loop in other jurisdictions) on the copper network, in areas where the high-speed broadband network is not deployed. This would enable other service providers to access the copper network in order to provide competitive broadband services to their customers. With the completion of this review, SKMM envisages that competition will be promoted in the wholesale market which will eventually benefit end-users in the form of lower prices, better quality of services and a more attractive range of products and services. Not only is market competition encouraged and developed through licensing and access to market for the sake of consumer choice but competition is also encouraged through the change of service ecosystem namely the implementation of Mobile Number Portability (MNP). Upon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide. After a successful LLT SKMM, in line with the Tenth National Policy Objective to ensure reliable and secure network, has taken on the responsibility to create a proactive platform that will be able to disseminate early warnings to its stakeholders, critical network information infrastructure and the public on possible threats through the SKMM Network Security Centre (SNSC) Project. The SNSC has been established to monitor malicious payloads and cyber attack signatures over the Malaysian Internet traffic. Any detection of such threats would be period, MNP was then launched nationwide on 15 October 2008 and all limits on port-in numbers and restrictions on locations were lifted.
organised seminars for their employees with the objective of educating staff on compliance issues, CMA 1998 and the relevant Regulations and to ensure all the compliance issues are adhered to. In addition, it is hoped that this would promote selfregulation and better compliance by the licencees in accordance to the law. Approximately 700 employees attended the seminar and speakers from SKMM were also invited during the seminar.
Cybersecurity in the Age of Connectivity

An integral part of our efforts at consumer protection is in the area of cybersecurity. The Internet has shifted key financial and personal information into the hands of the consumers. Almost everything can be done on the Internet with much ease, for instance buying and selling, banking, social networking and many other activities. However, much like the real world, criminal elements do lurk on the Internet. Cyber threats have been on the rise and they come in many forms and disguise, and whats even more alarming, also getting more organised. The message is clear that concerted and collective efforts at national, regional and international levels are required to deter such criminal acts that are costly to both consumers and businesses. In Malaysia, a cyber security monitoring centre was set up to increase vigilance over the networks.
followed by advisories to all critical network information infrastructure owners and further assistance to mitigate the threats. SKMM has successfully completed the first phase of the SNSC project, involving seven major ISPs. We recognise that ISPs, being the owners of networks in Malaysia, collectively form the Malaysian Internet. They are the heart beat of the Malaysian Internet as they interconnect the Malaysian public and private networks with the global networks. The future phases of the NSC project will include other smaller ISPs, other critical information infrastructure and existing cyber security agencies. The SNSC will conduct periodic cyber exercises with external entities to continuously revise its policies and ensure the readiness of our nations networks in dealing with cyber threats. Also, in efforts to enhance the countrys capability to withstand cyber threats, SKMM hosted the inaugural IMPACT World Cyber Security Summit (IMPACT WCSS), held in Kuala Lumpur from 20 to 22 May 2008. This was the largest ministerial forum ever organised on cyber security threats, which saw a gathering of ministers, industry leaders, technology luminaries and cyber security experts from 27 countries including Australia, Canada, India, Japan, Mexico, Saudi Arabia, Singapore, South Korea, Thailand and the United States. The IMPACT WCSS included the inaugural meeting of the IMPACT International Advisory Board, a ministerial round-table, and plenary sessions and indepth discussions on the latest cyber security threats, trends and issues facing countries. The Summit was officiated by the former Prime Minister YAB Tun Abdullah Ahmad Badawi, who delivered the keynote address. Dr Hamadoun Toure, the SecretaryGeneral of the ITU also delivered his address during the opening ceremony. The goal of the inaugural summit was to chart the
Choice for the Consumer, Competition for the Providers

In April 2008, SKMM commenced the review of the Access List and Mandatory Standard on Access, and conducted preliminary discussions with the stakeholders of the communications and multimedia industry. On 25 September 2008, SKMM issued the Public Inquiry Paper in accordance with Sections 55(2), 55(4), 59 and 61 of the Communications and Multimedia Act (CMA) 1998 to seek public opinion. SKMM also conducted two public hearings wherein the public were able to seek clarification on issues raised in the Public Inquiry Paper. Subsequently, SKMM published the Public Inquiry Report on 21 December 2008, followed by issuance of two determinations, namely the Access List and the Mandatory Standard on Access on 5 January 2009. In undertaking this review, SKMM began by examining the competitiveness of the seven markets within the communications and multimedia industry, covering fixed telephony, mobile telephony, upstream network elements, interconnection, leased lines, broadcasting transmission and broadband markets. Thereafter, SKMM determined the facilities and services on the Access List to ensure end-users long-term benefits. Consistent with the Governments objective to increase broadband penetration in Malaysia, an important focus
direction of the IMPACT as a global multilateral collaborative platform for a joint partnership between governments and the private sector to combat cyber security threats. Part of the effort will include the establishment of an early warning system i.e., the IMPACT Centre for Global Response which will facilitate swift identification and sharing of information with member-governments during cyber security emergency and threats. It is envisioned that this system will actively monitor threats and be a focal point for governments during any cyber security incidences. The Centre will also play an important role in policy formulation, international cooperation as well as become a centre for training and promulgation of cyber security best practices.
International Participation
Besides the IMPACT WCSS which stands to leapfrog Malaysias involvement in efforts against cyber terrorism, SKMM also takes an active and pro-active role in international affairs with communications and multimedia stakeholders. SKMMs international activities are, first and foremost, guided by the CMA 1998, in particular the first National Policy Objective to facilitate the transformation of Malaysia into an industry global hub. In planning and organising international engagements and activities, SKMM is cognisant of the global communications and multimedia scenario, especially the need to create resiliency in the industry during the global economic slowdown and to ensure that the countrys needs are met. SKMM engages with various international organisations listed in a Ministerial Direction issued under Section 269 of the CMA 1998. Working in close partnership with the Ministry of Energy, Water and Communications (KTAK), SKMM represents Malaysia as the regulatory authority in communications and multimedia while at the same time building and co-ordinating Malaysias International profile and activities in this industry.
Furthermore, SKMM collaborates with its various counterparts both regionally and internationally to enhance regulatory measures and practices towards mutual industry competitiveness and growth, facilitate inbound and outbound investments and trade, as well as to develop network and human resource capabilities in communications and multimedia applications and transactions. These various engagements serve to create cross-border industry alliances and smart partnerships for the growth of the industry. Consequently, SKMM is also involved in various bilateral and multilateral negotiations such as Free Trade Agreements and Economic Partnership Agreements with our trade partners, which is led by Ministries of Foreign Affairs and International Trade and Industry.
Fast Forward 2009

As we peek into 2009, we will see the slowdown in growth for the communications and multimedia industry in tandem with the global economic downturn. However, I am confident that the industry will still act as a major catalyst and contributor towards increasing the competitiveness of the country in the future. What is in store for us in the next decade? The foundations have been set, the progressive build-up is on its way and it is up to the current and future visionaries and workforce to lead the way for the industry to realise its full potential.
016
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Commission Members
018
Commission Members
019
Datuk Dr. Halim Shafie

was appointed as Chairman of the Malaysian Communications and Multimedia Commission (SKMM) on 1 April 2006. Datuk Dr. Halim obtained a Bachelor of Economics (Hons.) from the University of Malaya (1972), Masters in Public and International Affairs from the University of Pittsburgh, USA (1980) and a Doctorate in Information Transfer from Syracuse University, USA (1988). He also attended the Advanced Management Programme at the Harvard Business School, USA, in 2000. Datuk Dr. Halim has held several positions in the Government sector, including serving as Assistant Secretary at the Ministry of Education. He served as Programme Coordinator for the National Computer Training Center at the National Institute Public Administration (INTAN), and as Director of the Information Technology Division of the Malaysian Administration Modernisation and Management Planning Unit (MAMPU) in the Prime Ministers Department. Datuk Dr. Halim went on to serve as the Director of INTAN before being appointed Deputy Secretary-General to the Ministry of Energy, Communications and Multimedia, in 1999. He was subsequently appointed as Secretary-General to the Ministry of Energy, Water and Communications, from November 2000 till March 2006 immediately prior to his current position as Chairman of SKMM.
Tan Sri Datuk C. Rajandram

is currently the Executive Deputy Chairman of Rating Agency Malaysia Holdings Berhad (RAM). Prior to assuming the lead position to start up Malaysias first credit rating agency, he had held various positions with Bank Negara Malaysia from 1962 until 1991. He was seconded to the Ministry of Finance from June 1986 to April 1991 as the Director of a special unit for monitoring and restructuring Government owned companies. From August 1998 to July 2001, Tan Sri Datuk C. Rajandram was the Chairman of the Corporate Debt Restructuring Committee (CDRC), one of the three institutions set up by the Government following the 1997 Asian financial crisis. He is a Fellow of the Certified Public Accountants, Australia (FCPA), Member of the Australian Society of Cost Accountants, Associate Member of the Australian Institute of Bankers, Member of the Malaysia Certified Public Accountants (MACPA) and Fellow of Bankers Institution of Malaysia (FBIM). Tan Sri Datuk C. Rajandram was appointed as a Commission Member on 1 December 2002 and is currently serving his third term as a Commission Member.
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Commission Members
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Dato Dr. Halim bin Man

is currently the Secretary-General of the Ministry of Energy, Green Technology and Water. His career in the Government spanned more than 30 years. He began his career as a civil servant with the Ministry of Home Affairs in 1977. He had served the National Institute of Public Administration (INTAN) in various capacities for about 16 years, during which he gained vast experience in training and human capital development. In 1999, he was entrusted by the Government to establish and lead INTAN North East Sarawak Campus. During the stint at INTAN, he had also been appointed as a Consultant to develop training programmes in Brunei Darussalam, Zimbabwe, Namibia and many others. In 2002, he was conferred the Eisenhower Fellowships, USA. Due to his vast experience and knowledge in the field of leadership, management and training, he was seconded as the Registrar of the University of Malaya in January 2003. In 2004, Dato Dr. Halim bin Man was appointed as the Deputy Secretary-General of the Ministry of Energy, Water and Communications and subsequently, in 2006, he was promoted to be the Secretary-General of the same ministry which is now known as the Ministry of Energy, Green Technology and Water. Dato Dr. Halim bin Man is an Exco Member of the Eisenhower Fellowships Association Malaysia. He is also a board member of Bank Simpanan Nasional, Telekom Smart School, GITN Sdn. Bhd. Malaysia-Thailand Joint Authority, Multimedia Development Corporation and Water Asset Management Company Berhad. Dato Dr. Halim bin Man was appointed as a Commission Member representing the Government on 1 September 2007 and is currently serving his second term.
Datuk Dr. Abdul Samad bin Haji Alias

is a Fellow of the Institute of Chartered Accountants in Australia. He has extensive experience in auditing and accounting. He is currently Chairman of Bank Pembangunan (M) Bhd, Chairman of Malaysia Venture Capital Management Berhad and Chairman of Malaysia Debt Venture Berhad. He is a Board Member of Lembaga Tabung Haji, Malaysia Deposit Insurance Corporation, Perbadanan Kemajuan Iktisad Negeri Kelantan, Felda Holdings Berhad and TH Plantations Berhad. He is also a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. In 2006, Datuk Dr. Abdul Samad received global recognition through the Association of Chartered Certified Accountants Award for Achievement in Asia. Datuk Dr. Abdul Samad bin Haji Alias was appointed as a Commission Member on 1 October 2007.
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Commission Members
023
Dato Dr. Gan Khuan Poh

is currently the Chairman of Lintramax (M) Sdn Bhd and Silver Bird Group Berhad and sits on the Board of Directors of Prudential Assurance Malaysia Berhad, Time Engineering Berhad and DagangNet Technologies Sdn Bhd. He is also a member of the Executive Council of the Malaysian Economic Association after being the immediate past President of the Association, a member of the Tenaga National Berhad Economic Council and the Senior Economic Research Fellow of the Asian Strategic and Leadership Institute. He served in the public service as an Administrative and Diplomatic Service Officer at various positions from the District level to the Federal Government especially in the Prime Ministers Department, at the Development Administration Unit, the Implementation Co-ordination Unit and the Economic Planning Unit (EPU) before retiring as the Senior Director responsible for Macroeconomics in the EPU. Then he became the Group Managing Director of the Pilecon Group of Companies. He joined Universiti Kebangsaan Malaysia as a Professor holding the post of a Senior Fellow of Institut Kajian Malaysia dan Antarabangsa (IKMAS). He holds a Ph.D.(Economics) and an M.A.(Economics) from Duke University, USA, a M.B.A.(Finance) from Cornell University, USA and B.A.(Honours) in Business Economics from University Malaya. Dato Dr. Gan Khuan Poh was appointed as a Commission Member on 1 April 2002 and is currently serving his fourth term.
Encik Mohamed Sharil bin Mohamed Tarmizi

was appointed as Chief Operating Officer (COO) of the Malaysian Communications and Multimedia Commission (SKMM) on 16 June 2008. Encik Mohamed Sharil brings with him a considerable number of years of experience in the legal field, communications and multimedia industry, as well as experience in the financial advisory and strategy consulting areas. Encik Mohamed Sharil was the Executive Director and Head of Strategy in BinaFikir Sdn Bhd, a financial advisory and strategy consulting firm, prior to being invited to join SKMM as the COO. He first joined SKMM in May 2000 and left for BinaFikir after serving SKMM for a period of six years. His last position in SKMM was the General Manager and Senior Advisor in the Office of the Chairman. In the international arena, Encik Mohamed Sharil has worked closely with the main international organisations in the Internet field, such as the Internet Corporation of Assigned Names and Numbers (ICANN), where he was the immediate past Chairman of the Government Advisory Committee (GAC) and a board member of ICANN for 4 years. Encik Mohamed Sharil holds a Bachelors Degree in Law from University College of Wales, Aberystwyth and qualified as a Barrister from Grays Inn, England and Wales (UK). In recognition of his in-depth knowledge of the communications and multimedia sector both locally and globally, he was appointed as a Commission Member of SKMM from 1 May 2006 and he continues to serve as a Commission Member to date.
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Commission Members
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Datuk Idris Abdullah

holds a First Class LLB (Hons) degree from the University of Malaya. Datuk Idris Abdullah is a Senior Partner of Idris and Company Advocates since 1989, a Sarawak -based legal firm. He began his career in 1981 as a resident lawyer at Ting and Company Advocates in Sibu, Sarawak. Between 1982 and 1985, he served as an in-house Legal Advisor to a Sarawakian Group of Companies with diverse business interests. During his tenure, he was also involved in advising the groups activities in human capital development, corporate affairs and corporate finance. Datuk Idris Abdullah was also a shareholder of many Bumiputra companies based in Sibu, Sarawak. He was appointed a Director and the Chairman of Kuantan Flourmills Bhd, from October 2002 until September 2005. He is also an advisor to some Sarawak companies involved in construction and building, motor vehicle trading, recreation club and education. Currently, he is the Chairman/ Director of Magnus Energy Group Ltd., which is listed in the Republic of Singapore, with interests in oil and gas in China and Australia, and development of coal mining activities in Indonesia. Datuk Idris is also a Member of the Companies Commission, having been reappointed a third term on 16 April 2009. As an active Member of the Companies Commission, Datuk Idris has been appointed a Member of the Audit Committee and Member of the advisory panel of the Companies Commission Training Academy (COMTRAC). Datuk Idris Abdullah was appointed as a Commission Member on 26 May 2008.
Datuk Mohd. Zain Mohd Dom

holds a Bachelors degree in Sociology. He started his career in the diplomatic service in 1976 and has, amongst others, held the positions of Assistant Under Secretary and Principal Assistant Director of the International Trade Division, Assistant Permanent Malaysian Representative to Geneva and Deputy Permanent Representative to the United Nations, Geneva (International Trade Division). Other notable appointments include being the Minister Counsellor for Economic Affairs of both the Malaysian Permanent Representative Office to the European Union (EU), Brussels and the Malaysian Permanent Representative Office to the World Trade Organisation (WTO), Geneva. He was the Lead Negotiator for the Malaysia-Australia Free Trade Agreement (FTA), the Malaysia-New Zealand FTA as well as the ASEAN-Australia-New Zealand FTA negotiations in 2005 and 2006. Datuk Mohd. Zain was appointed as the Secretary-General of the Ministry of Domestic Trade and Consumer Affairs on 6 February 2007. He was appointed Chairman of the Companies Commission of Malaysia on 1 March 2007. He is a Member of MyIPO Board since 6 February 2007. Datuk Mohd. Zain was appointed as a Commission Member on 1 January 2008.
026 Senior Directors
027
Zamani Zakariah
Senior Director, MyICMS
Dato Jailani Johari

Senior Director, Universal Service Provision
Senior Director, Research & Planning
Toh Swee Hoe
Mohd Aris Bernawi
Senior Director, Resource Assignment & Management
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Senior Directors
029
Amarjit Singh
Senior Director, Content, Consumer, Network Security and Postal
Ruzlan Zabidi
Senior Director, Management Services
Mohd Ali Hanafiah
Senior Director, Technology, Standards and Network
Tengku Zaib Raja Ahmad

Senior Director, Human Capital Management
Senior Director, Strategic Information System
Nik Abdul Aziz Nik Yaacob
Laila Hassan
Acting Senior Director, Licensing & Economic Regulations
030 A Snapshot of Statistics on Communications & Multimedia Activities

1) C&M Revenue Market Share by Sector Communications and Multimedia Revenue Market Share by Sector 2008 Broadcasting RM3.8 billion (9%) Pos Malaysia RM0.9 billion (2%) Others RM0.6 billion (2%) Penetration Rate (%) 3) Cellular Mobile Penetration Rate (1997-2008) 120 100
85.1 98.6
031
6) Percentage of Internet Users per Household by Age Groups Percentage Share of Household User Base (%) Age Category Below 15 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 and above 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2005 6.5 18.6 17.2 12.5 12.2 9.9 9.6 5.1 8.4 2006 7.3 18.7 16.3 11.3 12.3 10.4 10.6 6.1 7.1 2008 6.8 17.9 15.7 11.9 11.7 11.2 9.3 6.1 9.4
80 60
43.9 56.5 36.9
74.1
72.3
40
21.8
30.8 9.7 12.0
20 0 Major Telcos RM35.5 billion (87%) Source: IPR 2008 2) Fixed Line Demand and Penetration Rate 4.8 4.7 Total Subscribers (million) 4.6 4.5 4.4 4.3 4.2 4.1 4 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: IPR 2008 0 Yes No 10 5 19.7 19.5 19.7 19.6 18.8 Fixed Line Demand Penetration Rate 18.1 17.2 16.6 16.1 15.8 15.3 25 20 Percentage Rate (%)
Source: SKMM Household Use of Internet Survey 2008 7) Percentage of Household Use of Internet by Activities
Source: Industry, SKMM Cellular Mobile Penetration Rate 4) Mobile Subscriber Base by Age Group Age Pre teens & teens (up to 19) Adults (20-49) Seniors (50+) Percentage Share of Handphone User Base (%) 2005 13.1 78.2 8.7 2006 20.5 66.8 12.6 2007 20.9 66.8 12.3 2008 24.4 62.5 13.1 Internet Usage For getting information Communications by text Leisure Education Financial activities Public services e-Government transactions* Online stock trading* Others 2008 11.5 88.5 Percentage Share of Household User Base (%) 2005 40.5 99.6 47.1 46.8 14.6 12.7 1.3 2006 84.5 80.7 52.7 45.9 23.6 12 0.2 2008 94.4 84.7 63.5 64.5 31.8 29.2 19.8 5.9 0.7
15
Source: SKMM Handphone Users Survey (HPUS) 2008 5) Percentage of Users Accessing Internet through Mobile Age Percentage Share of Handphone User Base (%) 2006 18.4 81.6 2007 13.7 86.3
*Not canvassed in 2005 and 2006 survey Source: SKMM Household Use of Internet Survey 2008
Source: SKMM Handphone Users Survey (HPUS) 2008
032
ICT has become an essential part of our lives. We rely more and more on its applications in so many facets of our daily life, more so at work and how we do business. To meet with this ever-growing dependence on ICT, it is vital that we keep in tandem with its applications so as to accelerate its penetration and usage within an even wider growing base offering enhanced technology with faster access.
01
Speeding Up the Growth of ICT
034 036 037 037 037 038 038 042 044 045 048 051 Progress Report for Broadband (MyICMS 886) 2008 TMs Undertakings Application of the Regulatory Framework for High-Speed Broadband Network Economic Indicators on Broadbands Benefits to the Nation Indicators for Broadband Take-up Report on QoS Compliance on Broadband Services Managing Communications Infrastructure Promotion of Local Content Development and NCDG Establishment of R&D Initiatives Under Digital Home Implementation of U-Library Digital TV Mobile Number Portability (MNP)
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Progress Report for Broadband (MyICMS 886) 2008
High Speed Broadband (HSBB)
The strategy for the nationwide broadband implementation to achieve 50% household penetration by the end of 2010 was proposed through the Cabinet Committee on Broadband (CCB) chaired by the Honourable Deputy Prime Minister. On 15 May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first being High Speed Broadband (HSBB) for selected areas delivering more than 10 Mbps and the second is Broadband to the General Population (BBGP) with speeds of up to 2 Mbps. On 16 September 2008, the Government and Telekom Malaysia Berhad (TM) entered into a public-private partnership (PPP) with the signing of the Agreement for the HSBB Project. The total cost of this ten-year project is RM11.3 billion, with the Government contributing RM2.4 billion for the first three years. In turn, TM will undertake investments to the tune of RM8.9 billion over the ten-year duration. The project will cover the inner Klang Valley, industrial areas nationwide and Iskandar Malaysia, connecting 1,335,544 premises with the HSBB network. Through this agreement between TM and the Government, returns from the project will be apportioned on a Revenue Sharing basis of either the fixed revenue sharing or the surplus revenue sharing methods. Any cost-savings derived from the project will be returned to the Government and TM through a mutually prearranged formula. The whole nation, covering the Government, the business sectors, socio-economic sectors and people representing all walks of life, stand to benefit greatly from the enhancement of the HSBB services offered through the public-private partnership approach. With the roll-out of the HSBB infrastructure, a whole new highly-interactive digital lifestyle environment will proliferate and thrive. Many new offerings and enhanced services will be introduced, such as eEducation, e-Commerce, e-Health, e-Government, Internet Protocol TV (IPTV) and e-Payment. The implementation of nationwide broadband services is indeed timely and stands to significantly contribute to the development and growth of the countrys social-economic community. by TM and to ensure local companies involvement in this project. The Technical Monitoring Committee is tasked to monitor the technical aspects of HSBB and BBGP implementation such as infrastructure-related issues, coverage areas and claims verification. The Technical Monitoring Committee held several discussions on finalising the process of consultant appointment for the HSBB project. The Committee explored ways and means for industry-players to work towards achieving the target of 50% broadband penetration. This includes ensuring industry players to expand on the coverage areas for their services to achieve the target set. Lastly, the Broadband Take-up Committee is responsible for a comprehensive broadband data collection and trend analysis so as to track the progress of broadband take-up, and thereon to review and analyse available schemes and incentives. The Committee organised a workshop with various industry players to establish and identify the indicators for broadband and explore ways of ensuring the data received by SKMM is more comprehensive and accurate. In addition to the above, an Industry Consultative Committee on Broadband Implementation was formed and a number of meetings were held to handle issues related to industries with regard to the nationwide broadband implementation. In turn, the above four committees report to the Integrated Project Management Office (IPMO) comprising members from the Ministry of Energy, Water and Communications (KTAK), SKMM and TM. The IPMO monitors the National Broadband Implementation, focusing on three core areas, covering Measurement, Awareness and Promotion, and Applications. The Integrated Content Development Taskforce (ICON) was formed to study the online content development initiatives of both the public and private sectors. ICON is chaired by the Chief Secretary to the Government. The secretary for the meeting is jointly held by MAMPU and MDeC, which represents both the public and private sectors initiatives, respectively. The organisation of the NBI Governance structure is shown in Figure 1 below. Other key aspects addressed as part of the coordination and monitoring exercise to ensure the success of the HSBB project include: 1) In November 2008, at an HSBB Implementation Co-ordination meeting involving KTAK, SKMM and the related ministries and government agencies, an agreement was established to process every complete application for site approval from TM within five working days. TM was also allowed to make bulk submissions for obtaining approval in order to facilitate and accelerate the HSBB project implementation. Each agency concerned and the Local Authorities have agreed to appoint a Liaison Officer comprising a Senior Officer to process the applications and assist to speed up decision-making associated with such HSBB project applications. 2) In December 2008, the Taskforce comprising officers from SKMM and KTAK undertook the verification process for the HSBB roll-out over three days at TMs site. In essence, the verification covers two major areas, namely: a. Technical verification which includes project and equipment verification, and documentation such as tender documents, project timelines, etc; b. Financial verification which covers considerations such as cost of equipment and documentation such as purchases, accounts and project accounts verification with project managers. Based on the methodology and sampling used to verify the expenditures and claims, the Taskforce verified a total of 36 projects in the Access, Core and International networks categories.
National Broadband Implementation (NBI) Governance Structure

To ensure the target of a 50% household penetration by the end of 2010 is realised, several working committees have been established to monitor and supervise the ongoing progress of the project. The National Broadband Implementation (NBI) Steering Committee was established under the Cabinet Committee on Broadband and this Committee, in turn, oversees these working committees from both the demand and supply sides. The working committees are as follows: 1) States Broadband Implementation and Co-ordination Committee 2) HSBB Procurement Monitoring Committee 3) Technical Monitoring Committee 4) Broadband Take-up Committee The States Broadband Implementation and Co-ordination Committee was formed to ensure the success of the broadband implementation in each state. Discussions were held with several state governments. The HSBB Procurement Monitoring Committee was established to monitor the HSBB procurements made
INDUSTRY CONSULTATIVE COMMITTEE MEETING ON BROADBAND IMPLEMENTATION
CABINET COMMITTEE ON BROADBAND (CCB) Chairman : YAB DPM NATIONAL BROADBAND IMPLEMENTATION (NBI) STEERING COMMITTEE Chairman : Dato KSU KTAK
INTEGRATED CONTENT DEVELOPMENT TASKFORCE (ICON) Chairman : Tan Sri KSN HSBB PROCUREMENT MONITORING COMMITTEE
Figure 1: NBI GOVERNANCE STRUCTURE
STATES BROADBAND IMPLEMENTATION AND CO-ORDINATION COMMITTEE TECHNICAL MONITORING COMMITTEE
INTEGRATED PROJECT MANAGEMENT OFFICE (IPMO)
BROADBAND TAKE-UP COMMITTEE
036
037
Community Library that are inter-connected by network. A department has been formed to undertake this project. Two knowledgesharing sessions on U-Library in the form of ExecutiveTalk@SKMM for information professionals of public libraries throughout the country were organised. e. Metropolitan Web Portal a collaboration between SKMM and DBKL to set up a portal containing information on Kuala Lumpur. This portal called www.kul.com.my was launched on 12 May 2008 together with the Wireless@KL project. with exploring various initiatives by stakeholders on delivery-platform sharing and business model development for convergence. enhance the business and consumer-user experience. The awareness programme serves as a platform for the public to acquire more knowledge on broadband, which stands to become the catalyst for many other technological advancements such as RFID, VoIP and so on. anti-competitive practices; and d. Promotion of the national policy objectives; To direct SKMM to defer the implementation of Full Access Service, Line-sharing Service and Sub-loop Service where such services are provided over the HSBB network for seven years from 16 September 2008 to 15 September 2015; To provide a statement of TMs intention that three HSBB services (High-Speed Broadband Access Services, High-Speed Broadband Connection Services and High-Speed Broadband Transmission Services) will be provided to Access Seekers on a commercially negotiated basis; and In all other aspects, the Access List remains unaffected. The other major benefits of broadband for the country include the following: 1) Improved access and higher quality of education, health, financial services and tourism; 2) Improved business environment for investors; 3) Improved sustainability of the countrys environment; 4) Narrowing disparity between the urban and rural from e-inclusion; and 5) Creation of new industries and services.
2008 Projects Covering Broadband Implementation

The two main projects undertaken covering the broadband implementation are as follows: 1) Pilot Broadband Project in Penang and Kulim This project was implemented with the target of achieving a broadband penetration rate of 80% in Penang in 2010. It involves broadband expansion in six locations in Penang and Kulim covering Batu Feringghi, Bayan Lepas, Bukit Mertajam, Batu Kawan, Kulim and Kepala Batas. All the six locations are connected by a Common Data Centre located in Kulim. As of 2008, 43 locations within Bayan Lepas, Batu Feringghi and Kulim were equipped with WiFi Hotspots facility. 2) Klang Valley Broadband Push (KVBP) The KVBP pilot project, which was launched earlier in 2007 to increase broadband penetration rate to 90% of households in the Klang Valley by the year 2010, continued to be pursued. Among the projects implemented in 2008 include: a. WiFi within libraries - 10 libraries in the Klang Valley were equipped with free WiFi facility. b. Wireless@KL a collaboration between DBKL and Packet One Networks (M) Sdn Bhd, with the support of SKMM, to install 1,500 WiFi hotspots in Kuala Lumpur. Since the launch of this project on 12 May 2008, up to 200 hotspots in 42 locations in Kuala Lumpur and almost 700 Access Points (AP) have been installed. c. eSchool - a collaboration between SKMM and TM with the placement of ICT facilitators in four schools (St Johns Institution, SM Cyberjaya, SM Agama Bestari Subang Jaya and SK Taman Tun Dr Ismail) to assist teachers and students in the usage of ICT facilities. d. U-Library a collaboration between SKMM and a number of libraries in the Klang Valley; the National Library of Malaysia, Kuala Lumpur Library, Raja Tun Uda Library, Perpustakaan Hipermedia Subang Jaya and Petaling Jaya
TMs Undertakings
In return for the funding participation of the Government in the public-private partnership with TM, as well as in supporting the initiatives towards achieving the targeted broadband penetration rate, TM has committed to several undertakings as stated in the HSBB Agreement. They are as follows: 1) Extending the HSBB network to government buildings and Institutions of Higher Learning (both public and private) within and outside of the main zone identified for HSBB network coverage. A total of 83 institutions will be connected with the HSBB network. 2) Providing a content platform for other content and application providers. 3) Developing telecentres outside areas specified for USP (Universal Service Provision) for the public within the first five years of the project. 4) Devising and offering low-cost broadband packages to the public. 5) Organising public awareness programmes such as exhibitions, conferences, broadband experience centres, and other activities. The overall benefits from such undertakings are that HSBB stands to enhance the Governments public service delivery and the education processes of the Institutions of Higher Learning. Besides that, HSBB stands to drive the growth within the local content development community by enhancing consumer experience and improving content developers productivity. The development of telecentres will bridge the digital divide and provide basic broadband access to everyone. With an affordable broadband package in effect, this will significantly
Application of the Regulatory Framework for High-Speed Broadband Network

With the signing of the HSBB Agreement on 16 September 2008 between the Government and TM, the Ministerial Direction on High-Speed Broadband and Access List, Direction No. 1 of 2008 (Ministerial Direction on HSBB and Access List) was issued on the same date, and was registered on 19 September 2008.
Indicators for Broadband Take-up

The monitoring of broadband take-up is performed on a weekly basis. Broadband indicators are based on technology type, at both state and national levels. As at Quarter 4 of 2008, the household broadband penetration rate was 21.1% with the number of broadband subscribers in Malaysia standing at 1.7 million, with 1.3 million being residential subscribers and 0.4 million non-residential subscribers. SKMM and the Wireless Broadband Operators have worked together under the Broadband Take-up Committee to undertake a survey. With effect from Quarter 4 of 2008, mobile broadband substitution on fixed lines for household penetration had been factored at 39.4% contribution. The usage of broadband by technology indicates that the widely popular ADSL (Asymmetric Digital Subscriber Line) service has captured the most users, with 1.2 million subscribers in the last quarter of 2008. This represents 75% of broadband subscribers, ahead of mobile broadband with 22.5%, SDSL (Symmetric Digital Subscriber Line) at 0.5%, Satellite 0.3%, others (fixed-line) at 0.4% and others (wireless) at 1.4%. The percentage of broadband subscriptions by technology is shown in Figure 2, (see next page).
Economic Indicators on the Benefits of Broadband to the Nation

The increased broadband will contribute significantly towards the increase in Gross Domestic Product (GDP). According to the Economic Planning Unit, based on initial estimates, the contribution to GDP is projected at RM6.68 billion or 1% in 2010. Around 135,000 new jobs are expected to be created at the same time. Table 1 shows the contribution to GDP and new jobs to be created in the future.
Broadband Promotions in 2008

The Mybroadband conference and exhibition with the theme Experiencing Convergence was held from 28 to 30 October 2008 at the Kuala Lumpur Convention Centre. The objective of the exhibition was to promote broadband services, showcase the latest technologies, solutions in broadband and ICT applications, together
The Ministerial Direction on HSBB and Access List directed SKMM on the regulatory framework to be applied to TMs HSBB network, as follows: To direct SKMM to review the HSBB network in relation to other networks. The factors to be considered in this review are specified as follows: a. Long-term benefits of end users; b. Effect on infrastructure investment; c. Effect on competition including any
Year
Contribution to GDP (based on 6.0% real GDP) RM(Billion) 6.68 10.68 3.59 15.88
Number of Jobs Percentage (%) Created 0.98 1.39 1.32 1.16 135,000 220,000 281,000 329,000
2010 2012 2017 2022
Table 1: Source - Economic Planning Unit
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Managing Communications Infrastructure
HSBB Implementation Scope
The scope of the HSBB project includes end-to-end deployment of high-speed broadband infrastructure that would require installation of new facilities and improvement to existing facilities. In general, the project entails deployment of broadband infrastructure as follows: 1) Access Network infrastructure 2) Core Network infrastructure 3) International Network connectivity It is expected that TM will deploy HSBB access to about 1.33 million premises in the areas identified by 2012. While the access infrastructure will only see deployment of HSBB infrastructure capable of minimum speeds of at least 10Mbps, the deployment of new infrastructure and upgrading of existing infrastructure in the backbone (core infrastructure) and international connectivity stands to improve general connectivity and bandwidth for the nations overall broadband infrastructure. Item 1. 2. 3. Category Access Core International IMPLEMENTATION AS OF NOVEMBER 2008 No. of Projects 168 143 2 313 2008 with the RoS under the name of Persatuan Pengendali Internet Selangor dan Wilayah Persekutuan or the Internet Operators Association of Selangor and the Federal Territory. The MyIX peering members comprise the following: 1) Telekom Malaysia Berhad 2) JARING Communications Berhad 3) AIMS Data Centre Sdn Bhd 4) Maxis Broadband Sdn Bhd 5) DiGi Telecommunications Sdn Bhd 6) TT dotcom Sdn Bhd 7) Nasioncom Sdn Bhd 8) REDtone CNX Broadband Sdn Bhd 9) Bizsurf (M) Sdn Bhd 10) Airzed Broadband Sdn Bhd 11) eB Technologies Sdn Bhd 12) Optical Communication Engineering Sdn Bhd 13) Paneagle Communications Sdn Bhd 14) HeiTech Padu Berhad 15) VDSL Network Sdn Bhd 16) MyKRIS Asia Sdn Bhd 17) Clear-Comm Sdn Bhd 18) Izzinet Sdn Bhd 19) NTT MSC Sdn Bhd 20) Packet One Networks (M) Sdn Bhd 21) U Mobile Sdn Bhd 22) Celcom (M) Berhad 23) Global Transit Communications Sdn Bhd 24) Macro Lynx Sdn Bhd The Association undertook preparations to hold its first Annual General Meeting to appoint members of the Executive Committee for the following positions: 1) Chairman 2) Deputy Chairman 3) Six Committee Members Among the items of the agenda of the AGM included the preparation of the financial and business plans for MyIX, including establishing the peering charges to be paid by peering members.
Others (Fixed) Satellite 0.4% 0.3% SDSL Others (Wireless) 0.5% 1.4% Mobile 22.5%
ADSL 75.0%
Radiation and Communications Tower Matters

In 2008, various public complaints were received voicing their concerns regarding RF radiation. On a positive note, SKMM agreed that measures of such nature should be attended to seriously and with urgency. Complaints were received nationwide which required extra and immediate attention to resolve the problems amicably. SKMM embarked on several initiatives, covering the organisation of a series of awareness programmes. Road shows, seminars and symposiums were held nationwide and below are some of the events undertaken during the course of the year. Event Date 13 Jan 2008 11 Mac 2008 05 Jun 2008 24 Jul 2008 20 Aug 2008 05 Nov 2008 08 Nov 2008 25 Nov 2008 16 Dec 2008 Title Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi RF Dialog @ Lebuh Tunku Kudin 2, Gelugor, Penang Seminar Kesedaran Radiasi Struktur Telekomunikasi Seminar Radiasi Frekuensi Radio dan Kesihatan Awam Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi Di Rembau Taklimat Kesihatan dan Keselamatan - Struktur dan Transmisi Komunikasi - Ipoh, Perak 5 RF Seminar - Wireless@Penang Seminar Radiasi Frekuensi Radio dan Kesihatan Awam - Miri, Sarawak Taklimat Kesihatan dan Keselamatan Berkaitan Struktur dan Transmisi Komunikasi - WPKL & Putrajaya
Figure 2 : Percentage of Broadband Subscriptions by Technology The broadband community access consists of 2,264 cyber cafes nationwide covering 11.3 million population, Government Net (1.2 million), 36 private institutions of higher learning (0.38 million), 20 public institutions of higher learning (0.41 million), 42 rural Internet centres (0.21 million), 117 Community Broadband Libraries (0.59 million), 2,008 Public Hotspots (0.35 million), 58 Community Communications Development Programmes (0.29 million), 12 Community Broadband Centres (0.06 million) and 10,000 SchoolNet locations (5.4 million).
About 65% of the investments at this stage are in the core network where TM had installed or upgraded new backbone capacity. This included Metro-E, Broadband Remote Access Servers (BRAS), Transmission, Control and support system. About 30% of the investments involved improving international connectivity where TM built the Asia-America Gateway cable system with its consortium members. The remaining 5% was invested in various civil works, fibre-optic installation and mini roll-out for access projects in various areas within the Klang Valley. There were also 3,000 premises passed known as Mini Roll-outs at this stage.
SKMM-HSBB Verification Taskforce Team members during site inspection at Wangsa Maju, Kuala Lumpur
The Malaysian Internet Exchange Report for 2008

SKMM was tasked to look into the establishment of the Malaysian Internet Exchange (MyIX), as a neutral exchange established to keep local traffic within the country by promoting and allowing direct peering among local Internet service providers. MyIX will not only reduce the international connectivity costs but also improve traffic latency, thereon also improving the quality of service for Malaysian Internet users. Since its establishment on 15 December 2006, the MyIX peering members have been increased to 24 members and the total traffic from the members has increased from 400Mbps many fold. As a result of the increase in bandwidth utilisation, the capacity of MyIX was upgraded from 1Gbps to 10Gbps in October 2008 to cater for the everincreasing demand. In formalising the collaborative arrangement for the peering members, it was agreed that the members of MyIX form an association under the Registrar of Societies (RoS). This was duely registered on 31 July
Verification on Network Roll-out

As provided for under the HSBB Agreement, the Government will verify the network roll-out implemented by TM. During initial stage, a Verification Taskforce was set up within SKMM and KTAK to verify the network roll-out and to recommend to the Government for payment to be disbursed to TM. The Taskforce verified the investments made by TM in access, core and international from 28 November to 11 December 2008. Documents and equipment were verified, both at the TM office and at sites where the projects were undertaken. The PPP Agreement provided for an independent consultant to be appointed by the Government to verify the claims made by TM. A tender exercise for the appointment of the consultant was undertaken in November 2008 with the selection being finalised in December.
Report on QoS Compliance on Broadband Services

Whilst ensuring that consumers receive the best returns from their subscribed services, SKMM applies a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Broadband, Dial-up and PSTN (publicswitched telephone network). As at end December 2008, SKMM initiated the exercise to perform the assessments for Cellular, Broadband Dial-up and PSTN services on an outsourced basis through experienced and reputable consultants.
HSBB Infrastructure Deployment

TM commenced work for some of the HSBB infrastructure following the issuance of the Letter of Award for the project on 25 July 2008 (Effective Date), pending the signing of the Agreement on 16 September 2008, which outlined TMs responsibilities and obligations for the project covering the stipulated period of ten (10) years. As at November 2008, TM successfully implemented 313 projects as scheduled, details as follows:
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gears can continue to assist SKMM to educate and resolve further complaints from the public. Future complaints received by SKMMs Consumer Complaints Bureau (CCB) is expected to be reduced through this approach. FAQs, public survey, useful links and many other topics. In conclusion, SKMM is aware about the industry requirements and the general public concerns with regards to various issues on towers and communications infrastructure. As such, SKMM has proposed to establish an industry committee to expedite the issues within the proposed terms of reference (TOR). 2. Malaysian Maritime Academy (ALAM) Certification of Proficiencies for designated skill area of Radio 2003 Operator (Maritime) 3 Sep 2003
3.
Objectives of the Formation

1) A choice platform where industry players can converge to table and address issues of interest and concerns such as infrastructure, health and radiation, etc. 2) Commitment from industry players in helping to resolve problems on infrastructure and health/radiation matters. 3) To cover the advent of new technology players: GSM, 3G and WiMAX. 4) Finding mutual consensus, a model solution for the industry, states, local authority and the public on various issues related to radio communication infra roll-out.
The test gear for RF measurement
Multimedia College (MMC); formerly known as Telekom Training College
Certification of Proficiencies 15 Jul 2002 for designated skill area of Non-Radio Operator (Cabling Provider)
One of the seminars organised by SKMM and held in Kuala Lumpur
SQASI undertakes certification programmes for certifying of all types of communications equipment for wired and wireless categories. ALAM and MMC undertake the certification programme for proficiencies under the designated skill area pursuant to Regulation 26(1). ALAM is responsible to conduct the certification category for the designated skill area of a radio operator. In turn, MMC is appointed to carry out the certification programme for cabling providers.
The seminars involved the participation of experts from the Ministry of Health (MoH), Agensi Nuklear Malaysia (ANM) and University Malaya Medical Centre (Prof Dr Ng Kuan Hoong, the author of SKMMs book on Radiation, Mobile Phones, Base Stations and Your Health). This publication was widely circulated amongst the participants to raise their understanding on radiation matters. SKMM has been working closely with MoH to provide consultancy regarding the radiation emission from various communications infrastructure and mobile phones. The consultancy which began in 2007 includes assisting MoH in developing the guidance document on EMF from base stations and mobile phones and the study on WiFi for the safe usage in hospitals. These areas need to be further developed to address rising concerns from the public and to provide assurance and guarantee that communications infrastructure utilising radio frequency (RF) are safe. SKMM is also actively involved in the development of the Malaysian Standards (MS) for EMF under the purview of Department of Standards Malaysia (DSM). The MS will be based on the International Commission on Non-ionizing Radiation Protection (ICNIRP) which is widely accepted internationally. Upon registration, the MS will be the basis of EMF emission in Malaysia. Moving forward, SKMM will be ready to counter public complaints by measuring the level of RF radiation at the complainants premises, so as to prove to them that the measurement level is far below the safe level. To provide SKMMs regional offices with choice understanding and relevant knowledge on radiation emission, the ROs were trained and equipped with appropriate tools to measure the RF radiation levels at selected sites. For this exercise, SKMM purchased relevant test gears to ensure adequate knowledge was disseminated to the staff of SKMMs regional offices. The test
SKMM also undertook a revamp to the contents of its website information pertaining to radiation.
No. of Certificates Issued
The proposed Committee is expected to be established in the first quarter of 2009 The following chart records their achievements in performing their functions as and would comprise industry members, State-backed Companies (SBC), Local registered certifying agencies for 2007 and 2008. Councils, SKMMs regional offices and other relevant organisations. Amongst CAs Achievement for 2007 & 2008 2007 other objectives to be achieved include: 2008 Target for full implementation by end-2009 3000 2,693 Continue these efforts until the end of 2010 to achieve the Broadband penetration 2,511 2,384 2500 rate of 50% 2,050 2000 Faster and smoother infra and service roll-out 1500 Reduce number of public complaints pertaining to RF radiation 1,051 919 1000 Increase number of sites at all states
500 0 SQASI MMC Certifying Agency ALAM
Certification Matters Certifying Agencies

Section 186 of the CMA 1998 provides for SKMM to register Certifying Agencies (CA) or Classes of Certifying Agencies (CCA) including agencies outside Malaysia. This affects the certifying mechanism for purposes of certifying compliance with codes or standards under Part VII, Technical Regulation of the CMA 1998. To date, SKMM has appointed three organisations and registered them as CAs.
The web address at www.rfrad.gov.my
For the year 2008, a total of 2,384 certificates (Type Approval) for the category of communications equipment were issued by SQASI. Of this total, 1,823 approvals or 75.5% were issued for radio-based (wireless) equipment. Compared to 2007, the total certification for this category has decreased slightly by 5.1%. Year 2007 2008 Certification Category Telephony 556 561 Radio 1,955 1,823 Telephony (%) 22.1 23.5 Radio (%) 77.9 76.5 Total 2,511 2,384
No. Organisation 1.
Registration Category
Date of Appointment 3 Sep 2003
The website contains a wide selection of information covering awareness programmes, publications, RF measurement results at complainants premises,
Sirim QAS International Certification of Sdn Bhd (SQASI) Communications Equipment
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2C : 2D : cabling provider fibre-optic for network (aerial and underground installation, jointing, testing and maintenance); and cabling provider cabling network design for network.
Certifications of Radio Operator Proficiencies by ALAM

ALAM issues two categories of certifications under the certification of proficiencies for designated skill area of radio operators, i.e. certification of Maritime Radio operator of Global Maritime Distress and Safety System (GMDSS) of: General Operators Certificate (GOC) and; Restricted Operators Certificate (ROC) The statistics for the certification programme conducted in 2007 and 2008 is detailed in the following table: Year 2007 2008 Certification Category GOC 657 820 ROC 272 231 Total 929 1,051
Certifications of Amateur Radio Proficiencies by SKMM

This category of certification has been conducted by SKMM since 2001. Two classes of certification are available, i.e. the Amateur Radio Operators Certificate (AROC) for Class A and AROC for Class B. The certifications are undertaken with two (2) separate examinations known as the Radio Amateur Examination (RAE) for the AROC Class B and the Morse Code Test (CW Test) for AROC Class A. In 2008, SKMM successfully conducted two RAEs and two CW tests. Details of the examinations/tests are shown in the following table: No. Examination/Test Radio Amateur Examination (RAE) Morse Code (CW) Test (Practical Test) Date Conducted 24 Jun 2008 17 Dec 2008 25 Mar 2008 24 Sep 2008 No. of Candidate Attended 1,818 1,802 20 18 Passed 1,037 993 13 9
concern of the authorities should relate to ensuring that adequate and exciting media contents and services can be provided over new networks. In this industry, the phrase CONTENT IS KING echoes loud and clear. Without any credible plans being effected for content development, the future of these networks might be at risk. Based on this realisation, the broadcast sector has taken bold steps to produce more local contents. In 2008, ASTRO allocated RM229 million for local content development compared to RM141 million in the preceding year. Meanwhile, Media Prima Berhad created its own content production arm called Primeworks Sdn Bhd and announced a RM250 million budget allocation for local content production for 2008 compared to RM196 million in 2007. The content market in 2008 was invigorated by several developments such as the introduction of new channels on ASTRO, the countrys general elections, rapid growth in cellular subscriptions, aggressive promotions of HSDPA (High Speed Downlink Packet Access) and the entry of a new player, U-mobile into the market. Mobile subscriptions grew to more than 26 million in 2008 compared to 23.3 million in 2007. HSDPA take-up also grew exponentially to 203,900 last year compared to the previous years figure of 96,300. The content industry in Malaysia is estimated to be worth RM7 billion as at 2008. It would appear that the colossal potential of the networked content industry has not been fully explored and promoted to become a reliable engine of growth. And from a national point of view, the content industry has an immense potential to become an engine for productivity and growth. Besides the economic benefits and implications, this industry also brings social benefits and at the same time, strong social implications. It offers Malaysians an exclusive opportunity to project our unique culture and national identity to the world. If we do not nurture our local content industry in time, our communications and media networks will be overrun by foreign contents which may have little regard and hardly any affinity for our local culture and values. Hence, content development has been identified as one of the six growth areas under the MyICMS 886 Strategy. The Content and Industry Development Department bolstered its effort in this area throughout 2008 with the objective of transforming Malaysia into a global hub for content development and services. The department adopted three key approaches namely: Facilitating stakeholders under the prevailing policies and regulations, Stepping up capacity building efforts; and Providing incentives for content development.
Networked Content Development Grant (NCDG)

The RM20 million allocation made available under the NCDG scheme set up by SKMM has become one of the major hypes in the local content industry since its launch in 2007. The purpose of this scheme is to render funding assistance to small and medium-sized entrepreneurs (SMEs) content developers in line with the MyICMS 886 Strategy. It aims to facilitate and encourage the involvement of Malaysians in the creation, production and distribution of highly creative, original and marketable contents for both the domestic and international markets. The table below provides some key facts and figures on the NCDG in 2008. No. 1. 2. 3. 4. Description Applications received Applications approved Unsuccessful applications Applications on WIP (Works-in-Progress) Total amount approved Status 32 6 10 16 RM4,030,530.00
The certificates were issued under the provision of Regulation 27(2) of the Communications and Multimedia (Technical Standards) Regulations 2000 in conjunction with the Merchant Shipping (Training and Certification) Rules 1999 and its standard of competence and is in accordance with the provisions of Regulation IV/2 of the International Convention on STCW 1978 as amended in 1995 and the ITU Radio Regulations.
1. 2.
Certifications of Cabling Proficiencies by MMC

The Multimedia College (MMC) conducted certification programmes for certification related to cabling proficiencies. In 2007, a total of 2,050 candidates were certified in this proficiency category and for 2008, 2,693 candidates were certified. The following table details their certification achievement for 2007 and 2008. Year 2007 2008 Certification Category 1A 526 738 1C 0 0 1D 126 40 2A 714 607 2C 658 1,269 2D 26 39 Total 2,050 2,693
The Amateur Radio Operators Certificate (AROC) Class B is issued to those successful in the RAE; for Class A, it is issued to successful candidates in the CW test.
More attention was accorded to contents which have the potential to be exploited on multiple platforms as a means to promote convergence and triple-play business models. Although certain types of contents have their primary platforms such as broadcast, mobile or online, the developers applying for the grant were constantly challenged to prepare their product proposals to be suitable for use on other platforms so as to generate more revenues from the content that they had created. The rigorous and transparent assessment procedures have seen only 25% approval rate for NCDG applications. At the core of this evaluation process is an expert committee comprising experienced and senior content development personnel representing the nine major stakeholder organisations within the industry. Although the approval rate was apparently low, the outstanding performances shown by the six successful NCDG projects had given qualified justification. One of the projects, an animation series called Mustang Mama Die-Hard Sports Fan by Inspidea Sdn Bhd, received international recognition and generated considerable revenue for the company. Further details about the NCDG are available at http://www.skmm.gov.my/what_we_do/ncdg/ncdg.asp
Promotion of Local Content Development and NCDG

Overview
Networked content is becoming an increasingly important subject alongside the rapid development of communications technology. In recent years, the Government has been increasing efforts to roll out world-class communications infrastructure to facilitate social and economic developments. Various directions and licences have been issued to support the robust progress in delivering communications and information services, such as 3G and WiMAX, to the masses. Some of the more recent mega-initiatives being geared up in these sectors are the High Speed Broadband (HSBB) and Digital Terrestrial Television Broadcasting (DTTB). However, as with all developments in communications, people are not interested in the technical details of these new networks or facilities; rather, their interest lies in what these new networks can deliver for them. This means that a primary
Legend: 1A : cabling provider copper pair for customers premises (installation, jointing, testing and maintenance); 1C : cabling provider fibre-optic for customers premises (installation, jointing, testing and maintenance); 1D : cabling provider cabling network design for customers premises; 2A : cabling provider copper pair for network (aerial and underground installation, jointing, testing and maintenance);
Market Access
One of the two expected results of MyICMS 886 for Content Development is stated
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their Mobile Money Edutainment application. SKMM also teamed up with ASTRO and MDeC to co-organise a reality TV show called Nextgen Contentpreneur Awards (NCA), aimed at encouraging Malaysian youths to explore various aspects and skills of content creation. Besides competitions, SKMM also conducts seminars and workshops to enlighten the public about burgeoning opportunities in networked content development. Two seminars were held in Kuching and Kuala Terengganu during 2008. Six workshops on mobile content development were organised throughout the country in collaboration with Maxis. SKMM and the Ministry of Energy, Water and Communications (KTAK) also organised a dialogue session which brought together two important stakeholders in the content industry, namely the animation companies and the broadcasters. SKMM played the role of moderator and many interesting issues pertaining to the content industry were discussed. One of the issues, the lack of demand stimulation, was taken up by SKMM for further consideration. Futuristic smart homes are starting to descend from the level of sci-fi vision, enabling lifestyle services that are empowered by the next-generation of communications and sensor-based technologies. In the medium- to long-term, the connected home will leverage multiple elements of a home network to create a smart home environment that will weave digital services into consumer lifestyles. This connected lifestyle services will be the connection that binds consumers together by providing new social networks. Today, service providers deliver distinct services to discrete devices. As the connected home takes shape, services need to be delivered by a centrally-controlled system where devices can talk to each other and services are designed to meet the needs of consumers. Services will be created, managed and delivered around consumer-centric lifestyle packages rather than the product-centric silos that characterise todays product offerings. Digital Homes use networking technologies to integrate appliances, devices and services within the home to control and monitor the entire living space from within the home as well as from remote locations. This would mean that Digital Homes are closely related to the telecommunications, broadcasting, home appliances networking and solutions. As such, the development of Digital Homes and other services, infrastructure and growth areas under the MyICMS 886 Strategy such as High Speed Broadband, Digital Multimedia Broadcasting, Short Range Communications, USP, Multiservice Convergence Network, Home Internet Adoption, Product Design and Manufacturing and Foreign Ventures are interconnected and interdependent. With the objective to educate the general public and create awareness on digital lifestyles, SKMM together with the Multimedia University (MMU) and various industry players (Intel, LG, Maxis, Astro, Senstech, EOM Systems and TMNet) collaborated to construct a Model Digital Home. Housed at the Multimedia University in Cyberjaya, the home functions as: A technology showcase of innovative digital home related products; A platform to introduce and demonstrate functionality of digital home technologies from tertiary institution, industry partners, etc; To provide a physical environment that acts as a test home for newly invented products/solutions; Generate interest and promote adoption of digitalliving from business perspective or consumer perspective. The digital universe is expanding, and in todays Connected Life, consumers expect entertainment, information and communication when they want it, how they want it, and even where they want it. This Model Digital Home showcases an end-to-end digital home ecosystem of innovative and integrated technology featuring 3G mobile home monitoring, an integrated security system, an intelligent home automated control system, a sensor friendly environment, and many other applications. This dream home of the future, conceptualised to meet the lifestyle of choice of every family member embodies four major lifestyle ideals, comprising Automation & Control, Safety & Security, Entertainment & Infotainment, and Healthcare & Comfort. In further promoting the Digital Home concept to the industry and public, a digital home model was showcased at the Experiencing Convergence. MyBroadband Conference and Exhibition 2008 (EC.MyBB08), held at Kuala Lumpur Convention Centre (KLCC) from 27 to 30 October 2008. The Model Digital Home showcased how todays progressive technology can enable converged video, voice and data (triple-play) services for a seamless consumer experience. The home, named DImpian, was equipped with fibre-to-the-home (FTTH) technology delivering high-speed broadband access service at 10Mbps to the home, 3G mobile home monitoring, an integrated security system, an intelligent home automated control system, a sensorfriendly environment, as well as a Digital Car. Visitors to the state-of-the-art home had the opportunity to experience the true meaning of convergence. DImpian was a joint partnership between SKMM, the Ministry of Energy, Water and Communications (KTAK) and TM, and supported by Maxis, HewlettPackard and LG.
as content will be a sizeable export revenue contribution for Malaysia. To realise this vision, SKMM collaborated with other government agencies such as MDeC and FINAS to conduct market access programmes. In April 2008, SKMM became one of the co-organisers to bring Malaysian companies to sell their contents and to find co-production partners at MIPTV 2008 in Cannes, France. The annual MIPTV organised by Reed MIDEM in Cannes is the largest media trade market in the world for co-producing, buying, selling, financing and distributing contents across all platforms. Attended by 13,000 participants and with participation of more than 4,000 companies/agencies from 93 countries, MIPTV is a concentrated avenue for local producers to meet and strike deals with major foreign buyers from Europe, America and Asia. The Malaysian Pavilion at MIPTV 2008 hosted by the three co-organisers-MDeC, SKMM and FINAS-drew tremendous results. An animation licensing rights and a co-production deal worth RM7 million were sealed during the event. Other contracts worth RM71 million were finalised after MIPTV 2008 event. (Source: MDeC) Malaysias participation at MIPTV 2008 produced indeed encouraging results towards achieving the objectives of MyICMS 886.
Capacity Building
Building talented human capacity and commercial viability are vital aspects towards the creation of a sustainable eco-system of content development. In order to achieve this aspiration, SKMM leverages on its strength as the regulator and developer of the communications industry and to bring various parties together to conduct capacity-building activities. In 2008, SKMM continued to collaborate with Maxis to co-organise the Mobile Content Challenge (MCC). MCC provides a platform for university students from all over the country to create exciting mobile content and applications. MCC 2008 garnered increased interest and participation compared to MCC 2007. Students from 59 institutions of higher learning submitted 185 entries for 2008 compared to only 96 entries for 2007. The MCC project also achieved another important milestone in 2008. Two top winners of MCC 2007 entered into commercialisation contracts with two content providers in 2008. These were Focus IT from Universiti Malaysia Sarawak, who signed a commercialisation deal with Metadome Sdn Bhd for their HalalPro application and first runner-up team, Kids Cashier from Universiti Teknikal Malaysia, Melaka, signed with LTT Global Sdn Bhd for
Establishment of R&D Initiatives Under Digital Homes

The MyICMS 886 Strategy has identified and targeted Digital Homes as one of the new services which stand to propel Malaysia in the delivery of advanced information, communications and multimedia services towards improving the quality of life of Malaysians besides boosting the countrys global competitiveness. The desired goals in this area are as follows: a) Short-term Home Gateway introduced in 60,000 homes to support small-office, home-office (SOHO) type of applications; b) Mid-term 500,000 homes interworking with external networks; c) Long-term 1 million connected homes. A digital home is defined as a home that is equipped with network that allows disparate devices to interoperate seamlessly. Consumers are able to access digital content from any device, anytime and anywhere, both inside and outside the home, through a home gateway. This would be a device that offers broadband connectivity to the home and delivers services to the home environment and to the different devices and interfaces that make up the home environment.
Implementation of U-Library
The mission of the Ubiquitous Library Initiative is to provide physical and digital access to knowledge resources in the knowledge repositories, richly
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the existing broadband infrastructure in connecting communities under the National Broadband Plan (NBP), which calls for leveraging on the development of traditional information resources. This would foster an engaging learning experience for the diverse information needs of an inclusive knowledge society, encompassing communities that are underserved, that includes people with disabilities; unemployed adults, retirees, minority communities, rural communities and community organisations. In this respect, issues of digital divide could be addressed. Pursuant to the U-Library strategy paper, two committees have been established as the Ubiquitous Library Steering Committee (ULSC) and Ubiquitous Library Technical Committee (ULTC) on 18 July 2008. ULSC comprises representatives from the Ministry of Energy, Water and Communications (KTAK); Ministry of Unity, Arts, Culture, and Heritage (KEKKWA); Ministry of Housing and Local Government (KPKT); Economic Planning Unit (EPU); Malaysian Administrative, Modernisation and Management Planning Unit (MAMPU); Multimedia Development Corporation Sdn Bhd (MDeC); National Library of Malaysia; Council of the State Public Library Directors and Association of University Libraries (PERPUN). Their role is to advise, monitor, approve and make decisions pertaining to recommendations and proposals by the ULTC on the implementation of the U-Library Pilot Project. National Library of Malaysia (PNM) (VIRTUA) Selangor State Public Library (PPAS) (ALS Global)
endowed with local content and international content, promptly and accurately without limitation of time, geographic location and users, simply known as anytime, anywhere, by anyone. The Ubiquitous Library Initiative has the objective of making information accessible with the widening of broadband service and RFID technology, in a co-operative library network system with the provision of a U-Library Portal for the purpose of creating, sharing and exchanging knowledge to keep communities together, promote learning and enhance social networking within a knowledged society. It formulates the information landscape underpinning the demand for broadband and sensor technology in keeping with the MyICMS 886 Strategy.
U- Library Consortium
Pustaka Negeri Sarawak (ANGKASA)
INTAN Library Bukit Kiara (ILMU)
U-LIBRARY IS ABOUT ACCESS

UBIQUITOUS LIBRARY Physical Access anytime, anywhere ACCESS WITH HSBB Digital Access anytime, anywhere Negeri Sembilan State Public Library (PPANS) (Clarice) Kuala Lumpur Library (Horizon)
Sensor Technology Awareness on the U-Library concept was further explained through Executive Talks, a series of events in the form of knowledge sharing. The first Executive Talk of 23 June 2008 was graced by Mr Johnson Paul from the National Library Board of Singapore (NLB) who highlighted U-Library: Value Innovating Services. The second Executive Talk took place on 18 August 2008, and was facilitated by Mr Samba Natarajan of McKinsey Singapore who focused on the Opportunities and Challenges of Broadband. Both executive talks were attended by senior librarians and representatives from the telecommunications industry. The U-Library Initiative is very much aligned with
U-Library Portal
Digitalisation
U-Library Portal
RFID
Library Mgt. System, NUC, Delivery Channel & Cashless Payment Gateway
Content
NUC, K-Repository
Borrowing & Returning Anytime, Anywhere
Information Discovery Anytime, Anywhere by Anyone
The Ubiquitous Library Steering Committee (ULSC) agreed that the pilot project be activated to connect a consortium of six libraries that include the National Library of Malaysia, Selangor State Public Library, KL Library, Negeri Sembilan State Public Library, Pustaka Negeri Sarawak, and INTAN Library at Bukit Kiara. All libraries have installed their library management systems, and these will be seamlessly connected to the National Union Catalogue through NISO Z39.50 (Information Retrieval Service Protocol). ULTC is represented by the participating libraries, the National Centre for Sensor Technology at UPM, Pos Malaysia Bhd, National Registration Department and Touch n Go and has been actively engaged in monthly meetings and occasional workshops, resulting in readiness assessment, development of U-Library
policy, requirement analysis for the U-Library system and U-Library Trial Run. The Readiness Assessment on the six participating libraries which took place between 2 and 9 September 2008 observed salient features that concerned governance, standards conformance for interoperability, common membership, and RFID-LMS integration in a heterogeneous setting within the U-Library consortium. The outcome was presented by the Chairman of SKMM at the Third ICON Meeting on 23 September 2008. The U-Library Pilot Project was accorded positive support by the Chief Secretary to the Government, YBhg. Tan Sri Mohd. Sidek Hassan. The Chairman of SKMM, YBhg. Datuk Dr. Halim Shafie emphasised the importance of observing five elements
for the U-Library Trial Run, which include Common Membership within the U-Library Consortium, National Union Catalogue or KIK, Delivery Service of Pos Malaysia, Broadband Speed and Connectivity amongst members of the participating libraries.
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Library Portal, National Union Catalogue, Library Management System, RFID technology, delivery service and cashless payment gateway in facilitating the participating libraries to be engaged with citizens through inter-lending service with the support of special delivery mechanism by Pos Malaysia, anytime, anywhere. Multipurpose kiosks endowed with RFID technology for self-service operations would empower citizens who are U-Library members to perform the suite of inter-lending transactions. The book drop will have RFID technology to accept the returned items belonging to any consortium library before their journey home to the owning library through the delivery service. The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform, however, is still in analogue format and in line with the developments of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and has set an analogue switch-off date of 2015. As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda were placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010. The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services beginning with the roll-out of trials in 2006. Digital Terrestrial TV (DTT) broadcasting in Malaysia will see the introduction of Standard Definition TV (SDTV) and High Definition TV (HDTV) that comes with additional services such as electronic programme guide, interactive TV, pay-per-view, video-on-demand, tele-shopping, telebanking, tele-health and many others on both fixed reception (through roof top antenna) and mobile reception (through mobile devices). using an analogue to digital converter box/set top box connected to the current analogue TV set or by purchasing a set top box (STB) and a digital TV tuner. Alternatively, the viewer can opt to purchase an integrated digital TV (iDTV) set that has a built-in set top box (STB). creating a boost for the creative and content industry. Young and local talents can be nurtured to produce high quality content while local production companies will have increased opportunities to create, produce and supply content to the digital platform. New content providers may emerge with differing and niche
U-LIBRARY MODEL
1. U-Portal Information Discovery Gateway for Users 2. LMS LMS for participating libraries Interoperability functionality Z39.50 (Information Retrieval Service Protocol) ILL functionality -Z39.83 NISO Circulation Interchange Protocol (NCIP)/SIP2 3. RFID System UHF for Tracking & Tracing with NCIP/ SIP2 (Standard Interface Protocol) 30 January 2009 has been designated for the kick-start of the U-Library Trial Run. The collaborative efforts of ULTC and ULSC culminate with the preparation of the RFP for the pilot implementation of the U-Library Initiative, scheduled for Quarter 4 of 2009. Lessons learned from the U-Library Pilot experience shall weave the fabric 6. Library Content National Union Catalogue
In co-ordinating the Ubiquitous Library initiative, SKMM takes the role of a Partner to work with the consortium of six libraries towards agreed objectives with clearly defined responsibilities. SKMM has appointed a Technical Advisor for this Ubiquitous Library Initiative.
7. Broadband Infrastructure
5. Cashless Payment Touchn Go MEPS
Digital TV
Digital Multimedia Broadcasting
Digital multimedia broadcasting covers both terrestrial and satellite TV and audio services. It enables the broadcasting of a vast amount of content on multiple devices such as TV and radio sets, mobile phones, portable media players and laptops. The Malaysian population has been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996, with a choice of over 100 TV channels, some interactive services and eight terrestrial radio stations. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005.
Benefits of Digital TV
Digital TV allows for broadcasting of more TV channels on a single radio frequency spectrum with improved picture quality and additional data and interactive services. It is more spectrum-efficient as one single radio frequency can accommodate up to six TV and multiple radio channels as compared to one TV channel occupying a single radio frequency spectrum in the analogue form. Most importantly, viewers will be able to enjoy high quality picture, clear audio and uninterrupted services even during bad weather. Viewers can receive digital TV services through an ultra high frequency (UHF) roof top antenna, either
Digital TV services will bring a host of benefits to the country, both economically and socially, being a major development contributor towards the national agenda. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the countrys National Policy Objectives. Digital broadcasting has a key role to play in the socioeconomic and cultural development of Malaysia. It is of fundamental importance in the emerging information society and knowledge economy, in which access to information and knowledge is regarded as a prerequisite to economic and societal development. DTT deliberately takes advantage of the opportunity provided by the process of migrating from analogue to digital broadcasting to accelerate the achievement of the countrys socioeconomic development goals, in general and the ICT development goals, in particular. Upon the roll-out of the multiple digital TV/Radio channels, more content and applications will be required, thus
programming strategies. The growing creative industry will provide an opportunity to nurture and increase local information resources or content such as the coverage of Malaysian stories and infotainment in multi-lingual and multi-cultures in the vast digital broadcasting platform contributing towards building national identity and social cohesion, and adding to global diversity. Digital broadcasting technology will enable the efficient delivery of a huge amount of content and information to the urban, semi-urban and rural population, thus fulfilling the Governments agenda in bridging the digital divide. The digital divide in Malaysia can be further narrowed by enabling access to e-government services, especially those who thus far have had limited or no access to rich information services. The digital technology comes with the capacity and features to enable the provision of services to the population while on the go,anywhere and anytime, in a multiplicity of languages, thus increasing access and use of rich information services which is in line with the Governments vision towards a more informed society.
4. Delivery Channel Pos Malaysia Berhad
for the national roll-out under the 10th Malaysia Plan. The U-Library Model unleashes seven components that will pivot HSBB to offer physical access for the purpose of unlocking knowledge resources in a network that requires the facilities of the U-
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anticipated that the advertising rates for electronic media will become even more competitive and subsequently attract more advertisers to reach their target markets thus, increasing the total advertising expenditure in Malaysia. efficiency and availability of mass devices. SKMM further initiated to conduct a Public Inquiry on the determination of a standard for digital terrestrial broadcasting in Malaysia in August 2006 and a report was published in October 2006. A Commission Determination on the mandatory standard for freeto-air digital television broadcasting was issued in November 2006 in which the Commission set forth the adoption of the DVB-T (Digital Video Broadcasting on Terrestrial) standard as the mandatory standard for the roll-out of DTT service in Malaysia. Another important milestone for digital broadcasting implementation is the adoption of technical specification for the middleware standard for STB. The middleware in the STB is the application that enables access to rich information and services on the digital terrestrial platform. Similar to the adoption of the standards for DTT, the decision to adopt the technical specification of the STB relies on factors such as worldwide deployment, commonalities of devices and technology maturity. Considering the importance of this milestone which will directly impact the viewers, SKMM further engaged in an industry consultation in late 2007 to propose the minimum technical specification for the middleware standard for the set top box. In August 2008, SKMM registered the minimum technical specification for the middleware of the set top box as a Voluntary Industry Code under the Communications and Multimedia Act (CMA) 1998, based on the MHEG 5 standard and using Mpeg 4 coding techniques. As spectrum management is key to the implementation of DTT, SKMM subsequently conducted a spectrum planning activity in 1997 to determine the optimal allocation of spectrum to the broadcasting licensees. This activity employed the utilisation of a specialised software that enabled the generation of digital coverage area predictions and provides the information on the constraint and interference areas to the current spectrum occupation. The spectrum planning activity has to be conducted carefully, taking into consideration factors such as the migration of other existing operators that are currently occupying the broadcasting band, border channels coordination with neighbouring countries and other adjacent service operators to avoid interference. The spectrum planning activity was completed in December 2008 following further deliberations within the industry. The finalisation of the spectrum planning completes the preparatory steps towards the roll-out of commercial digital TV services. In December 2008, SKMM proceeded to prepare the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for DTT services, for public consultation. In facilitating the migration towards digital TV, SKMM formed a Digital Switchover Group (DSoG) in July 2008, comprising public and private broadcasters, equipment manufacturers, Malaysian Technical Standards Forum, broadcasting service provider and the relevant divisions within SKMM. The DSoG met regularly with a prescribed Term of Reference and discusses work plans to meet the analogue switch-off date of 2015. The DSoG also functions to make recommendations on policies and framework for digital migration for further consideration by the Government. In ensuring the readiness for the industry to migrate to digital TV broadcasting, SKMM initiated the move to fund a DTT trial-widening exercise to enable the participation of private broadcasters and other new content providers. The trial is aimed to evaluate the latest compression standard Mpeg 4 and high definition TV (HDTV) services. The trial widening is aimed to last for a year, beginning the second quarter of 2009. Additional efforts to introduce Mobile TV services were initiated by SKMM during the year in review. The Malaysian Technical Standards Forum Berhad (MTFSB), an industry forum designated by SKMM funded a mobile TV trial in January 2008 in collaboration with industry players such as RTM, AMP Radio stations and many local interest groups and worldwide equipment manufacturers that supplied the loan equipment on a voluntary basis. The mobile TV trial was conducted employing the Terrestrial Digital Mobile Broadcasting (T-DMB) standard (a Korean-based standard) and was aimed to evaluate the performance and features of this particular standard. Earlier trials using other competing standards namely Digital Video Broadcasting on Handheld (DVB-H) and Media FLO were conducted in 1997 by Maxis. The T-DMB trial demonstrated that the T-DMB technology is a matured technology, proven to be stable and suitable for implementation as recommended by the task group. The trial spurred substantial interest within the local players to consider this potential technology for mobile TV service roll-out. Having used equipment from international manufacturers, Malaysia is now recognised and listed in the DAB and T-DMB global map. The valuable experience gained during the trial was a feat, enabling Malaysia to share this valuable knowledge with the rest of the world. The trial which was successfully undertaken had provided valuable hands-on experience to the members. landscape in Malaysia. It is anticipated that the DTT infrastructure can be rolled out in 2010 with commercial services available by 2012. There will also be additional initiatives to be undertaken by industry players such as Asia Space and Media Prima to implement mobile TV trials using T-DMB technology on L-Band and Band III frequencies consecutively in 2009. Additionally, RTM has indicated interests to initiate the trial on Digital Audio Broadcasting using DRM (Digital Radio Mondiale, a German-based technology) and DAB + (a European-based technology). The initiatives taken thus far by both SKMM and the industry stand to enhance further efforts to create Malaysia as the communications and multimedia hub, whilst keeping abreast with worldwide trends.
Another important benefit derived from digitalisation is the Digital Dividend in which the spectrum released by analogue broadcasters after the migration period can be utilised to introduce even more new services such as wireless broadband (cognitive radio), highspeed mobile broadband, regional television, more high definition TV, emergency services and others. Whilst there are already digital TV receivers available in the market today, the migration towards digital will see an enhancement of the production and marketing efforts of the digital TV receivers by manufacturers. It is expected that the requirement for STB or digital receivers/tuners can be, to a large extent, supported by the countrys local manufacturing industry. This means that the industry will need to harness existing and make new investments in production facilities to meet the expected demand for electronic equipment, particularly STBs, UHF antenna and new TV display sets. Additionally, in order to ensure equipment compliance and quality assurance, the TV receiver devices need to be certified by certifying agencies. This means that a new business activity would be established resulting in the creation of more job opportunities. Within the current analogue environment, the latest report by the Nielsen Media Company Malaysia indicates that the Malaysian advertising expenditure grew by 13% to RM6.2 billion in 2008. The growth in 2008 was driven by Terrestrial TV (+20%), Newspapers (+8%), Radio (+21%) and Point-Of-Sale (+28%). Newspapers and Terrestrial TV continue to command the bulk of total advertising across the medium measured, with respective shares of 54% and 35% followed by Radio (5%). As in the past, print media has always dominated the advertising market due to its low advertising rates and wide distribution channels. With the introduction of more TV/Radio channels across the multiple digital broadcasting platform, it is
Digital TV Initiatives
SKMM has undertaken several initiatives to introduce digital TV services in Malaysia beginning 2001 upon the presentation of a paper entitled Analogue to Digital Migration for Television to the Economic Planning Unit (EPU). Subsequently in May 2002, SKMM organised a workshop with all the government agencies, working on the final draft of the Malaysian Spectrum Plan. In September 2002, EPU appointed a consultant to study and prepare a National Digitalisation Master Plan. Following this, in April 2003, SKMM conducted a public consultation by issuing a discussion paper entitled `Concepts for the Introduction of Digital Terrestrial Television (DTT) in Malaysia. Upon completion of this study, the Consultant produced two reports namely the RTM Digitalisation Plan and the National Digital Master Plan in 2004. SKMM consequently approved four temporary radio frequencies in 2005, two stations each at Ulu Kali and KL Tower, following the application by RTM to implement DTT trial transmission. The RTM DTT trial was launched in 2006 and covered approximately 25% of the population within Klang Valley and involving 2,000 trial users. The said trial employed digital video broadcasting on terrestrial (DVB-T) as the standard and using Mpeg 2 (Moving Pictures Expert Group 2) coding format. Content genre on the digital trial platform comprise music, sports, news and interactive channels aired by RTM on the digital platform. In rolling out DTT services, the decision to adopt a particular standard by a country is deemed as the initial key step to ensure successful roll-out, taking into consideration factors, among others, worldwide deployment, technology maturity, performance,
Mobile Number Portability (MNP)

Background
Upon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide. In carrying out the LLT, SKMM learnt from the experience of other jurisdictions which showed that launching MNP on a wide scale also brings with it potential risks. For instance, calls were not able to be made in Mexico when MNP went live just a few months before Malaysias launch. SKMM chose to take a measured approach so as to ensure that the implementation will run smoothly and all potential hitches could be addressed and managed during the LLT i.e. before the nationwide implementation. During the LLT, SKMM limited the porting activities to only five centres in the Klang Valley for each mobile
Moving Forward
The completion of the spectrum planning activity will propel and facilitate the industry to roll out commercial digital TV service in the near future. SKMM is currently ready to issue the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for Digital Terrestrial Television (DTT) services, for public consultation in 2009. Amongst various activities planned, the industry and public will be invited to provide their views with respect to the sharing of digital TV broadcasting infrastructure, multimedia hub operations, spectrum usage and the number of new digital TV services and applications to be offered. Such feedback will be given due consideration, which will ultimately shape the DTT
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customer ID, unpaid outstanding bills and the existence of supplementary lines which were not ported together.
Port Request 324,641 Successful Port 211,697 Port Rejected 103,697
operator. In turn, each of them was only allowed to accept 100 port requests per day. After a successful LLT period, MNP was then launched nationwide on 15 October 2008 and all limits on portin numbers and restrictions on locations were lifted.
to process Consumer Ports throughout the duration of 29 August to 31 December 2008 are as follows:
100% 90% 80% 70% 60% 50% 40% 95.7%
officers of the Donor and Recipient in terms of issue resolution; and b. Initial technical issues on the operators side especially during the early stages. These awkward issues are being addressed by the operators. Based on the efforts and also the experience gained during the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come.
Table 1: Overall Porting Figures

Thousands 160 140 120 100 80 60 40 20 0 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Non-Consumer Ports
With Non-Consumer Ports (corporate clients), the porting process will take longer as it will involve a large amount of phone numbers. Hence, the maximum porting duration allowed under the MNP Industry Business Rules was ten days for the first year and this to be lessened to five days thereafter. The time-frame taken by operators to process Non-Consumer Ports throughout the duration of 29 August 31 December 2008 can be seen in Graph 3 below:
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% <=5 Day 1.8% 6 Days 0.6% 7 Days 0.3% 8 Days 0.2% 9 Days 0.0% 10 Days 0.4% >10 Days 96.7%
Port Req Succ Port Rejected
30% 20% 10% 0% 1.7% 0.8% 0.8% 0.4% 0.6%
Based on Graph 3 and Table 3, 96.7% of all port requests for Non-Consumers were completed within one day of the port request being made and this augurs well for SKMMs plan to reduce the timeframe allowed for porting. Currently, Non-Consumer Ports only account for 2,460 (or about 1%) of the total successful ports. It is also noted that 0.4% of the port requests went beyond the 10-day limit allowed. Based on the experience gained within the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come. We remain optimistic that such delays will be addressed and become a thing of the past.
1 Day 2 Days 3 Days 4 Days 5 Days >5 Days
Graph 2: Chart on Time-frame for Consumer Ports Number of Days 1 Day 2 Days 3 Days 4 Days 5 Days More than 5 Days % of Port Completed 95.7% 1.7% 0.8% 0.8% 0.4% 0.6%
Porting Activities
The following are some of the statistics based on the implementation of MNP commencing the nationwide launch up to 31 December 2008 (covering a period of about two and a half months). It includes:
Graph 1: Pattern of Port Requests, Successful Port & Port Rejects (Monthly Tabulation)
Duration Taken For Porting

The duration taken for porting can be divided into two categories, namely the duration for Consumer Ports (individuals) and also Non-Consumer Ports (corporate clients). The two categories are distinguished as the complexity in porting process between the two categories differ significantly.
Cost of Porting to Consumers

SKMM did not dictate to the industry the amount of porting fees that may be charged to customers who wish to port. However, SKMM did decide that any porting fee charged should not be too exorbitant and should be capped at RM25.00. Currently, none of the operators is imposing any porting fees to the port-in consumers. Right from the LLT period, Celcom, DiGi and Maxis decided not to impose any porting fees to the consumers. U Mobile charged customers RM10.00 for porting fees during the LLT but decided to lift the porting charges on 16 October 2008 (i.e. the second day of the nationwide launch). From 16 October to 31 December 2008, all operators did not impose any porting fees to their port-in customers.
Overall Porting Figures

The overall porting figures as at 31 December 2008 are as follows: 1) There have been 324,641 requests to port their numbers to a different operator; (these include multiple port request by Recipient operators i.e., the same number may request for port more than once after the first request has been rejected by the Donor); 2) Of the total requests, 211,697 numbers have been ported successfully; and 3) 103,697 port requests were rejected for various reasons, with the main reasons being mismatch
Table 2 : Time-frame for Consumer Ports Based on Graph 2 and Table 2 above, 95.7% of all port requests for Consumer Ports were completed within one day of the port request being made (almost 80% within four hours or less). This reflects favourably on SKMMs plan to reduce the timeframe allowed for porting. Currently, Consumer Ports account for 209,237 (or about 99%) of the total successful ports. It is important to note that 0.6% of the port requests went beyond the five-day limit allowed and these were attributed to the following reasons: a. Initial lack of co-ordination between the designated
Graph 3 : Chart on Time-frame for Non-Consumer Ports
Number of Days <=5 Days 6 Days 7 Days 8 Days 9 Days 10 Days More than 10 Days Table 3 : Time-frame for Non-Consumer Ports
% of Port Completed 96.7% 1.8% 0.6% 0.3% 0.2% 0.0% 0.4%
Consumer Ports
With Consumer Ports, the porting process will take less time as the total numbers involved (including those with supplementary lines) usually are limited. Hence, the maximum porting duration allowed by SKMM based on the Public Inquiry held early on was five days for the first year and this to be lessened to two days thereafter. The overall view of the time-frame taken by operators
054 ICT is a socio-economic enabler, helping the country to move forward and enhancing competitiveness amongst enterprises. It is necessary for us to keep an eye on the quality of interoperability, making sure it is up to mark, whilst being managed and run by qualified service providers.
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Ensuring Communications Integrity & Excellence
056 058 058 059 Categorisation Market Supervision Services Accessibility Implementation of WiMAX Services
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The new individual licences were issued to: No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Name of Licencee Touch Mindscape Sdn Bhd Wellcom Communications (M) Sdn Bhd Sector Solutions Sdn Bhd Y-Max Infra Sdn Bhd MOL Media Sdn Bhd Stealth Solutions Sdn Bhd Tune Talk Sdn Bhd Global Transit Communications Sdn Bhd Kedah ICT Holdings Sdn Bhd I R&D Sdn Bhd Paneagle Communications Sdn Bhd Macro Lynx Sdn Bhd Malaysia Airports (Sepang) Sdn Bhd Segi Maju Consortium Sdn Bhd Tyoe of Licence NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) CASP (I) NFP (I) NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) NFP (I) & NSP (I) Licence Issuance Date 4 Feb 2008 4 Feb 2008 4 Jul 2008 7 Jul 2008 4 Aug 2008 4 Aug 2008 12 Sep 2008 26 Sep 2008 29 Sep 2008 14 Nov 2008 14 Nov 2008 28 Nov 2008 5 Dec 2008 5 Dec 2008 Service Category Nominated Facilities Provider Broadband Services Nominated Facilities Provider WiMax IPTV Tower Construction MVNO Bandwidth Services Broadband Services in Kedah Broadband Services in I-City Shah Alam Broadband Services Broadband Services Facilities and service provider for KLIA area Radio Trunking Facilities & Service Provider not impede the achievement of the objects of the CMA 1998; and the administration of the CMA 1998. In 2008, two companies, namely Touch Mindscape Sdn Bhd and Syarikat Prasarana Negara Berhad, were awarded with Nominated Facilities Providers registration through a Ministerial Declaration issuance. However, Tenaga Nasional Berhad withdrew their application.
Categorisation
The Malaysian Communications and Multimedia Commission (SKMM) is entrusted to issue licences under the Communications and Multimedia Act (CMA) 1998, the Postal Services Act (PSA) 1991 and the Digital Signature Act (DSA) 1997.
namely: NFP Network Facilities Providers NSP Network Services Providers ASP Application Service Providers CASP Content Application Service Providers Under these four categories, two types of licences are issued, namely the Individual Licence and Class Licence. The individual licences are issued for activities which require a high degree of regulatory control whilst the class licence only requires registration and, are renewable annually. The list of licencees are maintained at the respective registers maintained by SKMM. Individual licence holders can undertake the following categories of activities:
and cables, and towers which are used in conjunction with other network facilities.
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Network Service Provider (NSP) Individual Licence

Services available under the Individual Licence category include bandwidth services, broadcasting distribution services, cellular mobile services, access application services and space services.
Issuance of Class Licences

There were 21 applications for NFP Class Licence, 27 applications for NSP, 424 applications for ASP and 16 applications for CASP. The number of registrations for class licences in 2008 is as follows: Class Licence NFP NSP ASP CASP Number of Registered Licencees 15 15 401 13
Licences under the Communications and Multimedia Act 1998

As Malaysias communications and multimedia industry matures and progresses towards convergence, licences under the CMA 1998 are formulated to ensure they are both technology and service neutral. CMA 1998s licensing terms allow a licencee to organise and manage marketing-related activities. This creates opportunities for much-needed awareness and expansion within the industry, particularly in the area of Application Service Provider and utilising a more effective network infrastructure. There are four categories of activities for consideration,
Content Application Service Provider (CASP) Individual Licence

This licence is applicable for those providing content application services such as satellite broadcasting, subscription broadcasting, terrestrial free-to-air TV and terrestrial radio broadcasting. During the financial year 2008, SKMM received 14 NFP, 16 NSP and three CASP Individual Licence applications. However, only 12 NFP, 12 NSP and one CASP applications were approved by the Minister and registered by SKMM.
of CASP (I) licences, which involved special licence conditions on location change of control centre and percentage of local content. As for the NFP licences, applications to vary licences are related to type of facilities and percentage of foreign shareholding. Only one application was received for variation of NSP (I) licence on licenced area. Three licencees surrendered their licence due to failure to roll out their services and one licencee applied to transfer the licence.
Network Facilities Provider (NFP) Individual Licence

This licence is issued to those who own and/or provide certain network facilities such as radio communications transmitters and links, fixed links
Application for Variation of Individual Licence Conditions / Transfer and Surrender of Individual Licence
In addition to new licence applications, SKMM also processed applications for variation of licence conditions and transfer of individual licence in 2008. Five applications were received for variation
Application for Nominated Facilities Providers

Pursuant to Section 130 of the CMA 1998, the Minister may, on the recommendation of SKMM, determine that the licenced network facilities provider, other than the owner of any network facilities, be a nominated facilities provider for the network facilities for the purpose of the CMA 1998, if the Minister is satisfied that the nomination will
CASP and ASP Class Licences Nationwide Road Show

The main objective of this programme was to educate and inform all hotel owners/operators about licensing requirements under the CMA 1998, in particular `inhouse broadcasting and `Internet access services which would require registration under the CASP Class Licence and ASP Class Licences, respectively. SKMM has planned a series of briefings to all hotel owners/operators with the assistance of the Malaysian
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requested for a variation of DBP, an extension of time to roll out their services or a combination of both. In terms of compliance with regards to 30% Bumiputera equity, only two companies did not comply with the requirements within the first year and thus, had applied for an extension. Type of Licence Network Facilities Provider (I) Network Service Provider (I) Content Application Service Provider (I) Total Table 1: List of Licencees Inspected in 2008 In addition, SKMM also monitored licencees who were previously granted an extension to comply with some other licence conditions. For 2009, there are 14 NFP (I) and 15 NSP (I) and 1 CASP (I) licences that are on SKMMs monitoring schedule. SKMM will continue to monitor licencees to ensure an effective and well-managed communications and multimedia market which in turn stands to benefit the industry, besides protecting customers interest. Number of Licencees 4 7 2 13 Multimedia Act (CMA) 1998 to seek public opinion. In addition, SKMM also conducted two public hearings wherein the public were able to seek clarification on issues raised in the Public Inquiry Paper. At the close of the Public Inquiry on 21 November 2008, SKMM received 20 submissions. Subsequently, in accordance with Sections 65(2) and 55(5) of the CMA 1998, SKMM published the Public Inquiry Report on 21 December 2008, followed by issuance of two determinations, namely the Access List and the Mandatory Standard on Access on 5 January 2009. In undertaking this review, SKMM began by examining the competitiveness of the seven markets within the communications and multimedia industry, covering fixed telephony, mobile telephony, upstream network elements, interconnection, leased lines, broadcasting transmission and broadband markets. Thereafter, SKMM determined the facilities and services on the Access List to ensure end-users long-term benefits. Consistent with the Governments objective to increase broadband penetration in Malaysia, an important focus of this review is on stimulating the level of competition in the broadband market. In this, SKMM adopted a forward-looking approach and considered the newer technological developments such as the high-speed broadband network and WiMAX. In considering the high-speed broadband network, SKMM ensured that the review is consistent with the regulatory framework to be applied to the TM HSBB as stated in the Ministerial Direction on HSBB and Access List. As a result of considering all relevant factors stated in the Ministerial Direction on HSBB and Access List, two new services, HighSpeed Broadband Network Services with Quality of Service and High-Speed Broadband without Quality of Service, were included in the Access List. In addition, SKMM also implemented Full Access, Sub-loop, Line Sharing and Bitstream Services (collectively also known as Unbundling of Local Loop in other jurisdictions) on the copper network, in areas where the high-speed broadband network is not deployed. This would enable other service providers to access the copper network in order to provide competitive broadband services to their customers. In relation to WiMAX, SKMM was concerned with the origination and termination of services over WiMAX networks. SKMM decided that these services are similar to mobile services, and has included WiMAX as an example of technologies used for Mobile Network Origination Service and Mobile Network Termination Service. The second main area considered by SKMM is whether there could be any potential issues faced by WiMAX operators to ensure termination of voice services onto their WiMAX networks. SKMM highlighted in the public inquiry paper that it would be concerned if any-to-any connectivity is hampered, wherein endusers on WiMAX networks are not connected to endusers on other networks. Having considered all the views received, SKMM did not consider it necessary to take any action at this stage. In addition, the Wholesale Line Rental was also added to the Access List as SKMM views that by regulating this service, it would stimulate additional competition in the fixed-line market. Further, SKMM also removed Equal Access (PSTN) Service, Internet Access Call Origination Service, Inter-Operator Mobile Number Portability Support Services and Network Signalling Service from the Access List mainly due to the lack of services usage. With the completion of this review, SKMM envisages that competition will be promoted in the wholesale market which will eventually benefit end-users in the form of lower prices, better quality of services and a more attractive range of products and services.
Association of Hotels, effected in 2008 and to be continued in the following year. In December 2008, SKMM organised a briefing for all hotel owners based in Johor and Malacca. SKMM will continue the road show in 2009 to the rest of the regions.
Registration of Access Agreements

One of SKMMs roles is to evaluate the access agreements between licencees and determine whether the agreements can be registered. In 2008, SKMM received a total of 37 access agreements. SKMM registered a total of 21 agreements in 2008 comprising eight principal agreements, eight supplementary agreements and five novation agreements. However, some of the registered agreements in 2008 were lodged for registration in 2007, whist some of the agreements submitted in 2008 are still being evaluated or being amended by licencees pursuant to the evaluation that was carried out by SKMM.
2007. Packet One Network (Malaysia) Sdn Bhd, Asiaspace Sdn Bhd and Y-Max Networks Sdn Bhd have been designated to provide services in Peninsular Malaysia, whilst REDtone-CNX Broadband Sdn Bhd would cover East Malaysia. SKMM has been closely monitoring the WiMAX operators adherence to their respective Detailed Business Plans (DBP) through submission of a monthly progress report.
Electronics Licensing Management System (e-LMS)

The e-LMS was developed to enhance the processing of Class Licence applications. The system enables the following: Online Class Licence applications by external parties; and Licence fee monitoring by the Licensing Department. e-LMS stands to deliver positive impact to the industry as it will enable the industry to gain from such automation wherein registration, especially for the ASP Class Licences, will be processed in accordance with the clients charter. Currently, the e-LMS is on trial and it will be officially launched in 2009.
Packet One Networks (Malaysia) Sdn Bhd

As at 31 December 2008, Packet One deployed 591 transmitters in 197 sites. They spent a cumulative capital expenditure of RM186 million for the deployment of their WiMAX network. Currently, Packet One is providing services in selected areas around Selangor, Wilayah Persekutuan Kuala Lumpur, Johor, Kedah, Negeri Sembilan and Penang. Since their commercial launch on 19 August 2008, they have a total of 9,986 subscribers, comprising both corporate and residential consumers.
Complaints Competition Complaints

In 2008, SKMM received two competition complaints which were on matters that were previously investigated and concluded. Based on preliminary assessment, SKMM found that there were no new facts or developments that warranted SKMM to carry out full investigations.
Asiaspace Sdn Bhd

In its first year of roll-out, Asiaspace will only be concentrating on deploying network in Klang Valley. As of 31 December 2008, Asiaspace has rolled out in nine sites in the Klang Valley with an investment of more RM7 million. Asiaspace is providing WiMAX services in Kinrara, Sungai Way, Subang Jaya, USJ, Kelana Jaya, Taman Tun Dr. Ismail, Technology Park Malaysia, Seri Petaling, Bandar Tun Razak, Taman Maluri and Bukit Anggerik. Since their commercial launch on 30 August 2008, they have garnered a total of 121 customers, them being mainly residential consumers.
Market Supervision
Monitoring of Compliance with Licence Conditions
One of SKMMs roles is to monitor licencees activities to ensure compliance with the stipulated conditions. During the year under review, SKMM visited four licencees who hold both Network Facilities Provider (Individual) [NFP (I)] and Network Service Provider (Individual) [NSP (I)] licences, one licencee who holds only the NSP (I) licence and two licencees who hold the Content Application Service Provider (Individual) licence. Of these licencees, four companies complied with all the conditions. The remaining licencees had either
Access Complaints
SKMM plays a role in mediating access issues between service providers. Most of the issues that are reported to SKMM are during negotiation of access agreements.
Services Accessibility
Public Inquiry on the Review of the Access List and Mandatory Standard on Access
In April 2008, SKMM commenced the review of the Access List and Mandatory Standard on Access, and conducted preliminary discussions with the stakeholders. On 25 September 2008, SKMM issued the Public Inquiry Paper in accordance with Sections 55(2), 55(4), 59 and 61 of the Communications and
Implementation of WiMAX Services

The Commission had awarded four successful applicants with the 2.3GHz spectrum band for Broadband Wireless Access Systems on 30 March
Y-Max Networks Sdn Bhd

As of 31 December 2008, Y-Max deployed 11 transmitters in three sites in the Bukit Bintang area, namely at Plaza YTL, Star Hill and Lot 10. To date,
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targets on the deployment of transmitters and sites as at 30 September 2008. As a result, SKMM has imposed a penalty of RM6 million on UMTS.
Y-Max had spent RM1.3 million in capital expenditure. Since their launch on 28 August 2008, they have registered a total of three corporate subscribers.
REDtone-CNX Broadband Sdn Bhd

REDtone-CNX had deployed 15 transmitters in five sites with a capital expenditure of RM3.2 million. Their WiMAX services are currently available in Kota Kinabalu and Kuching. REDtone-CNX launched their services on 20 August 2008 and has three corporate subscribers.
Celcom (Malaysia) Berhad (Celcom)

On 28 April 2008, SKMM transferred the 3G Spectrum Assignment from TM to Celcom. Thus far, Celcom has achieved total population coverage of 70.88% and with 1.97 million subscribers. As of December 2008, Celcom has deployed 8,235 transmitters and 2,891 sites, and has presence in major Malaysian cities. Celcom completed four MVNO negotiations and launched one with Merchantrade Asia Sdn Bhd in July 2007. For International Roaming, Celcom has arrangements with 57 countries and 93 operators.
Implementation of IMT 2000 3G Services

SKMM monitors the Spectrum Assignment (SA) Holders of their 3G roll-out commitments and adherence to their Detailed Business Plan. The following are assigned with the 3G Spectrum: UMTS (Malaysia) Sdn Bhd SA awarded on 2 April 2003; U Mobile Sdn Bhd SA transferred from U Telecom Media Holdings Sdn Bhd (formerly known as MITV Corporations Sdn Bhd) on 19 December 2007; Celcom Malaysia Berhad SA transferred from Telekom Malaysia Berhad (TM) on 28 April 2008; and DiGi Telecommunications Sdn Bhd SA transferred from TTDotCom Sdn Bhd on 7 May 2008.
DiGi Telecommunications Sdn Bhd (DiGi)

SKMM had transferred the 3G spectrum assignment from TT dotCom Sdn Bhd to DiGi on 7 May 2008. DiGi had in October 2008 completed its selected commercial roll-out, whereby 100 individual subscribers who are DiGis internal users were selected. The coverage areas for the selected commercial roll-out are Subang Hi-Tech, Subang Jaya, along the LDP Highway and Setia Alam. As at 31 December 2008, DiGi has 152 transmitters and 60 sites. DiGi had spent RM50 million in 2008 for its 3G roll-out.
UMTS (Malaysia) Sdn Bhd (UMTS)
U Mobile Communications Sdn Bhd As at 31 December 2008, UMTS has deployed 6,449 (U Mobile)
transmitters and 2,325 sites, of which 1,378 sites and 4,134 transmitters have been upgraded with High Speed Packet Access (HSPA). UMTS has a population coverage of 48.5% and has coverage in all major cities in Malaysia. As at the end of 2008, UMTS has about 2.5 million 3G subscribers and 146,000 HSDPA or wireless broadband users. SKMM found that UMTS did not comply on the DBP As at 31 December 2008, U Mobile has deployed 2,546 transmitters and 885 sites. U Mobile has achieved an average of 21% population coverage nationwide and has approximately 1.2 million registered subscribers. U Mobiles 3G network is available in Klang Valley, urban areas in Negeri Sembilan and Ipoh, Perak. Domestic roaming arrangements with Celcom are available in other areas while U Mobile continues to progressively deploy its network nationwide.
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Anything is possible in the world of ICT. And adapting to its ever-changing environment is equally important. It is vital to be always prepared to continuously enhance technical expertise, ensure higher interoperability standards between networks and services through efficient management of resources and research programmes.
03
Responding to New Emerging Technologies
064 066 072 081 081 085 Spectrum Management Strategic Review (SMSR) 2007/2008 Spectrum Research Collaboration Spectrum Assignment and Management NASMOC and Spectrum Engineering and Interference Resolution Spectrum Co-ordination Numbering
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Overview of Spectrum Management International & Regional Co-ordination Conversion Plan Marketing Plan Database Accounting Invoicing & Receipting Spectrum Assignment Apparatus Assignment Class/ Exempt Spectrum Quality Control and development; Current and future trends and development in: spectrum management techniques; regulation; policy; and Development of Malaysias communications and multimedia sector and its impact on spectrum management. SKMM, on completion of the initial phase of the review released the preliminary findings in a public consultation (PC) paper which invited the public to comment or provide feedback on the issues that arose from the review. For the first time ever, SKMM further provided web based submissions to facilitate wider participation. The public was also invited to a clarification session on the PC document and was followed by focus group sessions with key spectrum groups and organisations. The PC period ran from 18 December 2007 to 4 February 2008. The response was encouraging with 27 fruitful responses received. Based on the data and information gathered and the results from the assessment and analysis, the SMSR 2007/2008 developed: 99 Recommendations for implementation over a 5-year plan. These can be generally categorised into the following areas: - Operational - Policy/Framework; and - Institutional Seven key strategic recommendations Develop a Five-year Spectrum Release Plan; Review the current spectrum plan incorporating WRC07 decisions and carry out a Detailed Spectrum Investigation (DSI); Establishment of National Spectrum Consultative Committee (NSCC); Flexibility to be built into policies to meet rapid convergence and technological developments; Use of spectrum pricing policy to manage demand and promote efficiency of use; Use of market approach (auction) for high-value spectrum as a way to select and award to the best; and Use of lighter touch regulation where applicable 21 Strategic Frameworks were provided to guide SKMM along the way in the implementation of the reccomendations: Standard Radio System Plan (SRSP) Development; Spectrum Allocation; Assigning Spectrum; Spectrum Sharing; Spectrum Release; Re-farming; SKMM Strategic Road Map National Spectrum Consultative Committee (NSCC); Standardisation; Monitoring and Inspection; Spectrum Interference Resolution; International Co-ordination; Regional and Cross Border Co-ordination; Satellite Filing and Co-ordination; Electromagnetic Compatibility (EMC); Spectrum Pricing; Spectrum Trading; Spectrum Auctioning; Public Consultation; Research Chair; Co-operative Education; and Human Capacity Development
Leading Regional Regulator SKMM well positioned to take advantage of world leading developments in spectrum management
Spectrum Management Strategic Review (SMSR) 2007/2008

Spectrum is a scarce resource and in recent years, it is becoming even more scarce, with the rapid advancement in wireless communications and the trend towards mobility and broadband communications. Efficient spectrum management is thus crucial to ensure that supply meets demand and that it provides a responsive and flexible framework to meet the need of all spectrum users. Among the salient features addressing this need are: Adequate provision of spectrum for public and community services; Maximising the overall public benefit derived from use of the spectrum by ensuring its efficient allocation; Encouraging the use of efficient wireless technologies and practices to enable operation of a wide ranges of services with an adequate quality of service; Supporting the policy objectives of the Government; and Promoting global spectrum harmonisation through international arrangements and framework. Rapid technological advancements in the field of spectrum have also provided the opportunity and avenue to review what we have been doing and what we may do in the future to ensure that the spectrum resource is optimally managed to meet the growing needs of the industry and other spectrum users. In executing the mandate under the CMA 1998 as the authority entrusted with managing the spectrum resource, SKMM had embarked on a Spectrum Management Strategic Review Project (SMSR 2007/2008) to review the current spectrum management framework and best practices, and to develop it further towards a progressive framework drawing on experiences from countries benchmarked in this study. It covers key issues such as: Spectrum Plan Policy & Reg Spectrum Engineering Standards & Certification
Spectrum Monitoring & Inspection
Spectrum Users Source: SKMM - Overview of Spectrum Management Maximisation of the overall public benefits from spectrum usage; Responsive and flexible framework to meet current and future needs of spectrum users; Transparent and effective spectrum management processes; Alignment of the framework to the CMA 1998 policy objectives and MylCMS 886 strategic plan; and Positive and strong framework to support the Governments push to position Malaysia as a global ICT hub and regional leader in the communications and multimedia industry. Initial information and views were obtained through interviews with major stakeholders (Government and Industry). The project team conducted interviews to gather stakeholders feedback and opinion, and to develop a detailed understanding of the current situation in Malaysia, particularly on issues related to the current spectrum management framework. The matters discussed at these interviews included: Current spectrum management practices; Current and future spectrum demand; Institutional aspects; and Domestic and international co-ordination and harmonisation Besides these interviews, research was conducted on the spectrum management practices of benchmark regulators identified as industry leaders. These benchmark regulators included the administration of the following countries and region: Australia (ACMA); Canada (IC); European Radio Communication Office (ERO); Hong Kong (OFTA); United Kingdom (OFCOM); and US National Telecommunication and Information Administration (NTIA). Key practices of spectrum management which worked well in the benchmark regulator countries were compared with those in Malaysia. SKMM further assessed and analysed matters such as: Future spectrum usage covering technology trends
Removal of Obstacles to Development
Insititutional Issues Staffing level Capacity building Organisational structure Operational Issues Market surveillance Service levels KPI Framework Realistic goal definition
Operational Issues Strengthen monitoring capability Detailed spectrum review Assignment terms Institutional Issues Staff retention, skills, capacities Collaboration with universities Framework Spectrum release plan Technology neutral
Framework Goals Spectrum trading Government payment for spectrum Operational Goals Stronger role in regional/ international Market based pricing mechanisms Transparency Institutional Issues Staff retention, skills, capacities
Evolution of Focus From Institutional to Operational to Framework /Policy 4 5 2012
Year 1
Source: SKMM, Spectrum Management Strategic Review 2007/2008
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Source: SKMM - Spectrum Research Collaboration Programme (SRCP) 2. Research Collaboration Panel (RCP) The RCP supports the RCSC. Members of RCP are from IHLs and the Industry who are elected by the RCSC. The RCP advises, manages and monitors the research programmes. RCPs responsibilities include: Identification of partnership programmes; Identification of appropriate existing resources available within the programmes perimetre (including subject matter experts); Development of programmes in collaboration with IHLs committed to the implementation of the selected programmes; Identification of research topics and evaluation of research proposals; Promotion of the Collaboration Programme to ensure its goals are achieved; Management and administration of the Collaboration Programme; Co-ordination to optimise the use of resources within the partnership; and Analyse and advice the Steering Committee and SKMM on research projects and their status. 3. Research Collaboration Secretariat The Secretariat (also known as SRCP Secretariat) supports the RCSC and RCP. The tasks of the Secretariat also include maintenance and updates of the web page for the IHLs Collaboration Programme (http://www. spectrumresearch.com.my). Source: SKMM - Committees Providing Guidance in Collaborative Process Research Collaboration Programme Management
SKMM University Collaborative Industry RCSC Report Feedback RCP 5 6 Feedback Quarterly Report 1 Monitors 4 Advises Secretariat
3 Refer
A summary of the results from the SMSR 2007/2008 exercise was shared with the public in a session held on 14 October 2008 at the SKMMs auditorium. Further consultations on specific items in the key strategic areas are expected in 2009 and 2010 as SKMM steps forward to carry through the strategic road map, implementing the recommendations.
Spectrum Research Collaboration Programme (SRCP)

The SRCP started in September 2006 with the establishment of the Research Collaboration Steering Committee (RCSC). The RCSC is responsible for the strategic direction, policy aspects, and determination of priorities, recommendations of collaboration projects to SKMM and also to approve the annual operational plans of the SRCP. The Objectives of SRCP Serve as a focal point of information, knowledge development, and Research and Development activities related to spectrum management. Develop SKMM knowledge resources; improve capability of those dealing with spectrum management. Provide platform for collaboration, sharing and exchange of knowledge, expertise and enhance capabilities to improve spectrum management. Source: SKMM - SRCP Objectives The SRCP is structured to ensure that the necessary governance of the research programmes or projects are sound and effective. There is the secretariat providing support to the two committees within the SRCP structure to provide a strong management framework and guidance in the collaborative framework. Secretariat and Committees Providing Guidance in the Collaboration 1. Research Collaboration Steering Committee (RCSC) The SRCP is governed by the RCSC and chaired by the Chairman of SKMM. Members of RCSC are from SKMM, KTAK, representatives from the Communications and Multimedia industry, government agencies, various stakeholders and Deputy Vice-Chancellors of Universities (Research Centres). RCSCs roles are to: Ensure integrity, transparency and independence of SRCP; establishment and maintenance of world-class standards and reputation, appropriate networking of available resources; Responsible for strategic direction, policy aspects, determination of priorities; Recommend collaboration projects to SKMM; and Approval of annual operational plan of SRCP, including modifying SRCP mandate as and when necessary.
2 Quarterly Report
1.
Secretariat monitors the progress of research projects, by evaluating Quarterly Reports, conducting technical visits to University together with RCP and meeting with research team, if necessary. Research teams are required to submit physical and financial progress report every quarter. Secretariat compiles quarterly reports and refers to RCP, as well as any outstanding matters pertaining the research. RCP advises Secretariat on technical issues regarding the research, while also reports the research progress to RCSC during Steering Committee meetings. Secretariat prepares paper and reports to SKMM management on the progress of the research projects, including advices and recommendations from RCP (if any). SKMM management acknowledges the report and provide feedback to Secretariat on any outstanding matters, with proposed actions to be implemented or directors to be informed to specific research team (if any).
2. 3. 4. 5.
6.
Spectrum Research Collaboration

As SKMM moves towards leadership in spectrum management, building human capital and resources in the areas of spectrum management is an important aspect to support the strategic road map. SKMM together with designated Institutions of Higher Learning (IHLs) collaborated in various programmes or projects on spectrum management related studies or research. This is being undertaken through the Spectrum Research Collaboration Programme (SRCP). The SRCP aims to improve the administrative, regulatory and technical expertise in spectrum management by promoting and funding research on spectrum management related matters in collaboration with IHLs and the industry. Through SRCP, experiences, knowledge, research studies or findings are shared with interested parties through a web collaboration portal at www.spectrumresearch. com.my. The portal was operational at the end of 2007 and served to disseminate knowledge as well as to aid networking among collaborative members. The web portal was officially launched on 12 April 2008.
Collaboration of the Parties in the SRCP

The RCSC steers the programme to achieve its mandate assisted by the RCP and the SRCP secretariat. This ensures effective governance of the whole SRCP. SKMM approves awards to all collaboration research projects through a tender process. Once projects are approved, collaboration amongst universities and the industry in the research areas are assisted through web networking hosted by SKMM. Universities and industrial participants can form Research Collaboration Clusters which may collaborate not only with each other, but also interact with the Research Collaboration Panel and the SRCP Secretariat. The SRCP establishes collaborative relationships with other centres or Universities, with similar or related initiatives, locally and overseas. In this respect, it is of particular importance to make use of the collaboration possibilities within regional and international framework such as the Asia-Pacific Telecommunications and EU framework. The figure shows the functional relation between the parties in the Collaboration Programme.
Source: Industry, SKMM - Research Collaboration Programme Management
Role of SKMM in the SRCP

The following are SKMMs role: SKMM allocates an annual fund available for selected Research and Development projects. SRCP budget allocation varies from year to year and currently stands at RM1 million per annum. SKMM issues the annual RFP and projects are evaluated with the assistance of the RCP with final approval for all research and development proposals resting with SKMM. The Chairman of SKMM is the Chairman of the Research Collaboration Steering Committee. Lecture series, conferences and other events are organised by SKMM in support of the SRCP. 2007 Total Fund Allocated No. of Projects Approved RM 3.844 million 11 2008 RM 1.06 million 6
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SRCP increases the weight of Malaysian spectrum management in the regional and international arenas. The spectrum research objectives are in line with promoting and achieving the goals of the Ninth Malaysian Plan and MyICMS 886 national development strategy. Source: SKMM - Other Benefits of Collaboration through SRCP 3. UTM, Univ. of Sydney, IIUM, UniKL Leader: Prof Dr. Rose Alinda binti Alias Adoption, Appropriation and Impact of Wireless Technologies on Malaysian Society Jun 2009
SKMM also leverages on this programme to bring experts from academia and industry, both local and overseas together for knowledge-sharing. This networking among them is an essential part of the programme as it ensures that Universities and researchers are focused and in touch with the industry. Through such collaborations, the SRCP will be able to seek, nurture and develop experts from local universities to assist the industry to find solutions as well as creating a ready pool of human capital that the industry can tap from. Spectrum Research Priority Areas Emerging Wireless Technologies Fast development of wireless broadband communications results in greater demand for radio spectrum and drives the development of new technologies to cope with increasing demand for broadband services. It is important for Malaysia to strengthen its research activities on emerging technologies and provide the funds for these. Emerging technologies include Cognitive Radio, Software Defined Radio (SDR), high-altitude platforms (HAPS) and Ultra Wideband (UWB). Spectrum Management In order to efficiently fulfill the increasing spectrum demand, spectrum management should put greater emphasis on the consideration of new emerging spectrum-efficient technologies and economic aspects such as spectrum cost. Studies on spectrum management will lead to policy and regulations development. For example, the study on spectrum cost versus network cost and issues on interference management techniques. Spectrum and Us Increasing demand for mobility requires more spectrum. There is a need to study how and to what extent this intensive use of spectrum will change and affect our lives. This is an exciting theme for sociologists, politologists and economists. The main task of the frequency managers is to provide as much spectrum as possible to fulfill increasing demands. In addition, electromagnetic radiation is a concern and studies in this area should be considered including investigations carried out by the World Health Organisation (WHO). Source: SKMM - Spectrum Research Priority Areas Other Benefits of Collaboration through SRCP Capacity building and knowledge growth for those involved in spectrum management. Funding research themes in line with needs of the industry. Platform for sharing knowledge and exchange of expertise locally, regionally and internationally. Promotion and organisation of seminars and workshops to a wider audience so as to help acquaint the public in aspects of spectrum management.
2008 Research Projects

The SRCP Secretariat announced the themes for the 2008 round of research collaboration with the RFP issuance in July 2008. A briefing session was conducted in the same month, providing opportunities for the researchers to seek clarification on the advertised research topics, as well as general information about the research programme. 31 submissions were received, this being a significant increase from the number of submissions received in the first round in 2007. However, out of the 31 submissions, only six research proposals were selected for the 2008 SRCP Research Fund. No. Lead IHL and Partner(s) UTM, Maxis Leader: Prof Dr. Tharek Abd Rahman Research Title Sharing Studies between the Mobile Service and Other Services in the 470960 MHz Frequency Band The Regulatory Measures to Enable Introduction of Software-Defined Radio and Cognitive Radio Systems Duration (months) 18
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Milestone of SRCP
SRCP Establishment (SEPT) Research Framework (APR) 1st RCSC (JAN) Colloquium 2008 (DEC) 2nd RCSC (APR)
MMU, MIMOS Wireless System CoLeader: Assoc Prof Dr. Lee Sze existence in Extended Wei C-Band UPM, UTM, USM, IIUM, CRC (Canada) Leader: Dr. Nor Kamariah Noordin Issues on Reliable Communications at Frequencies Bands above 25 GHz
Jul 2009
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Award 6 Research Projects (JAN)
Aug 2009
Award 11 Research Projects (SEPT)
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UTM, Uniten, IIUM Dynamic Spectrum Leader: Prof Dr. Norsheila Fisal Access Management System Using Cognitive Radio UTM, UKM, Maxis Leader: Prof Dr. Tharek Abdul Rahman Emerging Wireless Technologies (Spectrum Needs for IMT-Advances in Malaysia)
Aug 2009
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RCP Commenced (NOV)
RFP 2007 (APR)
Spectrum Research Portal (APR) 2008
RFP 2008 (JULY)
3rd RCSC Colloquium 2009 2009
7.
Sep 2009
2.
UTM, UKM, USM Leader: Dr. Muhammad Ramlee Kamarudin
20
2006
2007
Source: SKMM - Spectrum Research Collaboration Programme
8.
Research Projects 2007

The first Request for Proposal (RFP) was issued in 2007, wherein 22 submissions were received. Eleven specific research proposals were selected and awarded the first SRCP Research Fund. Two of the research projects were completed in 2008, and the remaining nine are scheduled to be completed in 2009. No. 1. 2. Lead IHL and Partner(s) Research Title Completion Date 10.
UTM, UMP, UiTM, Malaysian Red Crescent Society, RF Comm. Sdn Bhd, Radio Amateur operators Leader: Assoc Prof Dr. Ahmad Zuri Shaameri UKM, UUM Leader: Assoc Prof Datin Dr. Norizan Abdul Razak UM, DiGi Telecommunications Leader: Prof Dr. Kaharudin Dimyati MMU, MUST Leader: Dr. Chuah Teong Chee
The Use of Frequency Sep 2009 Adaptive HF System
3.
UTM, UiTM Leader: Prof Dr. Tharek Abd Rahman
18 The Possibilities of High Altitude Platform Station Gateway Links Deployment in the 5850-7075 MHz in Malaysia The Effect of Emission from Short Range Devices on Radio Communication Services Collaborative Spectrum Management System A Strategic Model in Spectrum Demand Allocation and Spectrum Pricing 18
9.
UNiM, First Principle Sdn Bhd Issue of Spectrum Cost Dec 2008 Leader: Dr. Cassey Lee Hong Kim versus Network Cost Uniten, UTM Leader: Assoc Prof Dr. Norashidah Md Din Radio Frequency Radiation (RFR) Preliminary Study for WLAN Networks and Mobile Phone Base Stations in Malaysia Dec 2008
The Impact of Wireless Technology Among Malaysian Society Synergising 2G, 3G and WiMAX Issues of Reliable Communications at Frequencies Bands above 25 GHz
Sep 2009
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UPM, UTM, USM, UIAM Leader: Dr. Raja Syamsul zmir Raja Abdullah A
Sep 2009
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UKM Leader: Dr. Rozilawati Razali UUM, MMU Leader: Assoc Prof Dr. Engku Muhamad Nazri Engku Abu Bakar
12 12
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Nov 2009
Source: SKMM - Research Projects 2008
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In May 2008, SKMM had a session with Universiti Pendidikan Sultan Idris at Tanjung Malim, Perak. The SRCP Secretariat presented to around 100 participants comprising researchers, lecturers and final year students from the institution. The session raised positive awareness of the programme besides raising participants interest to join the SRCP research community. SKMM looks forward to more of such interactive sessions in 2009 to promote the SRCP to other Universities through RCP visits. Six lectures were conducted in 2008, with participation from overseas presenters and local universities. The lecture series is also a platform where researchers under the SRCP who have completed their research project will be given a session to present their findings to the industry. This helps to enlighten the industry of the findings on a specific issue or topic and creates opportunity for further works and collaboration. SRCP Lecture Series 2006 - 2008 No. Lecture 1. Spectrum rules OK: Wireless Communications from Submarines to Satellite Wireless Broadband Access: An Overview on Standards and Systems Trials in Malaysia Evolution to Next Generation Mobile Network Approaches in Re-farming of Spectrum and Spectrum Management Mobile TV Presenter UTHM Date 1 Dec 06
SRCP Colloquium 2008

SRCPs 2008 activities included the inaugural SRCP Colloquium 2008, which was held on 18 and 19 December 2008 at the Putrajaya Marriott Hotel. The two-day event enabled all research teams to share and present their progress and findings to SKMM, RCSC, RCP and the SRCP research community. Each of the eleven team leaders from the SRCP Research Project 2007 presented updates to the audience comprising researchers, research officers and research assistants as well as representatives from KTAK and SKMM offices. The audience was invited for their comments and feedback on possible improvements to the projects. At the end of the Colloquium, all the presentation material was shared with the SRCP research community through the SRCP portal. 1 2 3
SRCP RFP 2008 briefing session, July 2008
Monitoring of Research Projects

Each research team is required to submit a quarterly progress report of their research project to the SRCP Secretariat. The quarterly report (with detailed writeups) shall comprise the physical progress of the project and also the financial report detailing expenses incurred. In addition, the RCP and SRCP Secretariats conduct monthly technical visits to each research university location on a rotational basis, to check on the progress of the research projects, provide feedback on the research works as well as conduct audit on the research facilities or equipment acquired from the research fund. This aims to ensure that the research project is on the right course towards achieving its intended objectives and also to attend to any difficulties faced by the researchers.
Briefing session to Universiti Pendidikan Sultan Idris, Perak, May 2008
2. 3.
Smart Antenna and Location-Based Services UTM MMU and DiGi
21 Mar 07 12 Jul 07
In August 2008, SKMM was invited to present the SRCP to participants of the Joint Sixth National Conference on Telecommunication Technologies (NCTT) Conference 2008. This event was hosted by Universiti Tenaga Nasional (UniTen) and was held in conjunction with the Second Malaysia Conference on Photonics (MCP) Conference 2008 at IOI Palm Garden Resort, Putrajaya. During the threeday event, the SRCP Secretariat delivered a paper on the Spectrum Research Collaboration Programme. A research team from UniTen also presented updates of their project Challenges in Radio Frequency Radiation Study for Mobile Base Station and WLAN Access Point Study.
4. 5. 6. 7. 8.
Maxis Communications Telenor Qualcomm
17 Aug 07 16 Aug 07 4 Sep 07 4 Oct 07 21 Feb 08 1) Chairman of SKMM officiated the opening of SRCP Colloquium 2008 on 18 December 2008 2) Prof Ir Dr. Ahmad Faizal, Chairman of RCP and Mr Toh Swee Hoe, Senior Director of Research Planning Division 3) Participants at the SRCP Colloquium 2008 4) Encik Mohamed Sharil Tarmizi, COO of SKMM delivering the Closing Speech at the event 5) Group photo at the end of the event 4 5
Current activities within ITU-R towards NTT DoCoMo IMT-Advanced or 4G Systems Set Top Box and Digital TV RTM/MTSFB, NDS AP, Telenor Broadcast Hldg AS
Lecture Series
One of the supporting activities of the SRCP is the Lectures Series, with invited speakers from the industry and universities, sharing their knowledge, expertise and experience about spectrum. Through such events, researchers can share their work, exchange views and issues on their ongoing research projects and possibly seek partnership or networking with relevant parties from the industry, Government and other IHLs. The series is opened to the public and attendance is free of charge. 9.
WiMAX Technology and the Strategic WICHORUS Inc. Importance of Interoperability for Large Scale Deployment Propagation Effect by Rain in Wireless Communications System The Sentinels: Technologies and Spectrum Occupancies of Radars UTM IIUM
5 Jun 08
Technical visit to University of Nottingham Malaysia Campus, November 2008
10. 11. 12.
1 Aug 08 24 Oct 08 21 Nov 08
Promotional Activities
Continuous efforts are made to introduce the research programme to the academia and industry. In addition to inviting the research community to the SRCP programmes at SKMMs headquarters in Cyberjaya, SKMM also responded to requests from universities to conduct Opportunities in SRCP session at their campus. This enabled more interested parties from the said university to learn about the research programme and to enquire on possible funding opportunities in the future. In such sessions, the RCP and SRCP Secretariat will be available to provide further insights on participation, opportunities for partnership and attend to questions from the audiences on research areas which may be funded by the programme.
Unmanned Aerial Vehicle (UAV): The USM Integration of UAVs Operation into Civil Airspace Awards Solutions, Inc
Acronyms
CRC DiGi Canadian Research Center DiGi Telecommunications Sdn Bhd (mobile operator) International Islamic University Malaysia Maxis Communications Berhad (mobile operator) Malaysian Institute of Microelectronic Systems
13. WiMAX Essentials: Technology, Interoperability, Deployment Challenges and Market Analysis
Lecture series on Unmanned Aerial Vehicle (UAV) by Universiti Sains Malaysia, November 2008.
22 Dec 08
IIUM Maxis MIMOS
Source: SKMM
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MMU MRCS MUST UiTM UKM UM UMP UNiM Uniten UniKL UPM USM UTHM UTM
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said transfer was held in SKMM, Cyberjaya on 27 January 2008. In November 2007, the Commission approved TT dotCom Sdn Bhd request for transfer of 3G Spectrum Assignment, from TT dotCom Sdn Bhd to DiGi Telecommunications Sdn Bhd. The event for the said transfer was held at Dewan Putra Perdana Shangri-La, Putrajaya on 7 May 2008. The total number of base stations for IMT2000 SA installed by all the operators in 2008 are 5,056.Total base stations installed by TM, UMTS, U Mobile and TT Dotcom according to regions are listed below: Region/ Operator Northern Eastern Central Southern Sabah Sarawak Total TM/Celcom 402 212 992 383 129 162 2,280 UMTS 416 107 1,357 314 43 60 2,297 U Mobile 0 0 479 0 0 0 479 TT dotCom/ DiGi 0 0 0 0 0 0 0 Meetings (LCM) papers were forwarded for LCM approval in 2008. The number of applications processed since the beginning of the year and the comparison against year 2007 are outlined below: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Total application 2007 2,489 17,649 20,210 8,140 11,482 4,509 1,622 2,491 5,403 2,874 3,328 3,439 83,636 Total application 2008 4,054 23,719 18,512 8,452 6,582 2,750 3,251 3,138 7,144 6,063 5,986 1,813 91,464 AA applications by type of apparatus
Land Fixed Station (Cellular Band) 25.2% Aeronautical Fixed Station 0.2% Broadcast Station 0.7% Amateur Station 2.1% Land Mobile Station 1.2% Aeronautical Mobile Station 1.3% Ship Station 3.3% Earth Station 3.9% Land Fixed Station 4.0% Terrestrial Microwave Station 58.1%
Multimedia University Malaysian Red Crescent Society Malaysian University of Science and Technology Universiti Teknologi MARA Universiti Kebangsaan Malaysia Universiti Malaya Universiti Malaysia Pahang University of Nottingham Malaysia Campus Universiti Tenaga Nasional Universiti Kuala Lumpur Universiti Putra Malaysia Universiti Sains Malaysia Universiti Tun Hussein Onn Malaysia Universiti Teknologi Malaysia
Spectrum Assignment and Management

Types of Assignment
Spectrum Assignment (SA) IMT2000 Spectrum Assignment International Mobile Telecommunication 2000 (IMT2000) or Third Generation Mobile System (3G) spectrum had been assigned to Telekom Malaysia Berhad (TM) and UMTS (M) Sdn Bhd on 2 April 2003 in the first round of the tender exercise. Two blocks of spectrum, comprising the earlier unassigned block in the first round of 3G tender and the remaining block in the core 3G spectrum [Terrestrial portion] band were put up for grab in this round of tender. TT dotCom Sdn Bhd and MITV Corporations Sdn Bhd were assigned with IMT2000 spectrum on 8 November 2006 and 2 March 2007 respectively through a second round of the tender exercise. On 19 December 2007 MITV Corporations transferred their SA to U Mobile Sdn Bhd. In January 2008, the Commission approved Telekom Malaysia Berhads (TM) request for the transfer of 3G Spectrum Assignment, from Telekom Malaysia Berhad (TM) to Celcom Malaysia Berhad (Celcom). The event for the
Table 3: Monthly AA Applications Since Beginning of the Year 2008 SKMM processed 10 types of AA. The table below gives the breakdown on the number of AA based on each type of AA for 2008 while the pie chart shows the graphical representation. Type of apparatus Ship station Aeronautical mobile station Land mobile station Amateur station Broadcast station Aeronautical mobile station Land fixed (Allocated cellular band) Land fixed station Terrestrial microwave station Earth station Grand total Table 4: AA Applications by Type of Apparatus Jan 49 15 78 59 12 2 0 166 3,158 515 4,054 Feb 90 47 114 305 49 6 18,359 154 4,544 51 23,719 Mar 141 39 293 149 89 18 268 1,117 16,278 120 18,512 Apr 69 30 119 97 212 19 303 295 7,273 35 8,452
Table 1: Total Base Stations for SA In terms of SA revenue collection, SKMM had collected more than RM40 million from TM, UMTS and U Mobile in 2008. The collected fees are from both SA and Annual Maintenance Fee. Details of the collection are shown in the table below: Operator Celcom UMTS U Mobile DiGi Total (RM) Table 2: Fee Collection Apparatus Assignment (AA) This section describes AA applications and collection for the year 2008. AA Applications for Year 2008 SKMM processed 91,464 applications in 2008. A total of 12 Licensing Committee SA Fee 8,000,000 8,000,000 0 0 16,000,000 Maintenance Fee 11,077,920 10,726,800 2,399,040 0 24,203,760 Total (RM) 19,077,920 18,726,800 2,399,040 0 40,203,760
SKMM also received various types of apparatus assignment applications from Government agencies. The agencies are as follows: Polis DiRaja Malaysia Majlis Keselamatan Negara Jabatan Penerbangan Awam Kementerian Pelajaran Malaysia Jabatan Penyiaran Malaysia Jabatan Pengairan dan Saliran Malaysia Jabatan Perpaduan Negara dan Integrasi Nasional Jabatan Meteorologi Malaysia Pusat Ko-Kurikulum May 44 13 110 55 16 57 232 298 4,632 1,125 6,582 Jun 80 8 96 347 177 15 414 342 1,248 23 2,750 Jul 67 23 58 42 18 1 238 248 2,553 3 3,251 Aug 47 28 21 79 15 1 276 109 2,528 34 3,138 Sep 276 24 68 572 15 25 2,535 206 2,708 715 7,144 Oct 37 11 29 112 0 1 254 138 5,467 14 6,063 Nov 1,165 913 52 100 3 0 188 617 2,010 938 5,986 Dec 948 8 53 12 7 0 0 4 781 0 1,813 Total 3,013 1,159 1,091 1,929 613 145 23,067 3,694 53,180 3,573 91,464
074
075
140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2007
Jabatan Pelajaran Perlis Jabatan Pelajaran Sabah Jabatan Air Negeri Sabah Jabatan Perkhidmatan Veterinar Terengganu Jabatan Bekalan Air Kedah Utara Universiti Teknologi Malaysia Universiti Teknologi MARA Universiti Utara Malaysia Delegation of Approval to Senior Director In order to reduce the time taken to approve applications for Apparatus Assignment, SKMM has taken the initiative to shorten the AA processing period by recommending to the LCM and SKMMs Chairman to delegate the approval to Resource Assignment and Management Division Senior Director. The approval was given by SKMMs Chairman for the following services: Allocated Cellular Band-GSM900 and GSM1800 WiMAX 2.3 GHz CDMA 450 Revenue from AA and SA A total of RM214.9 million in revenue has been collected by SKMM. For 2008, the SKMM collection has increased by RM27 million compared to 2007. The collection since early of the year are shown in the following table and graph. Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Year 2007 (RM) 2,244,763 5,526,190 158,387,218 4,375,681 1,978,996 2,157,284 3,254,849 1,153,943 2,029,165 2,153,346 1,961,549 2,143,356 187,366,340 Year 2008 (RM) 4,032,896 62,965,472 107,705,563 14,629,851 3,587,013 4,267,402 3,009,695 3,349,441 6,665,073 3,129,964 1,240,143 379,710 214,962,223
Class Assignment (CA) SKMM presented the new CA for LCM approval on 22 May 2008. However the committee requested that a CA Committee be set up with participation of Technical Standard Department, Spectrum Research and Planning Department, Legal and Secretarial Department and Resource Assignment Management Department. To date, five meetings have been organised to finalise the document. The proposed nine new schedules as an addition to the existing schedules are as follows: Radio frequency identification device Active medical implant Aeronautical mobile telemetry access device Mobile satellite access device Satellite broadcasting receiver device Terrestrial television broadcasting receiver device Terrestrial radio broadcasting receiver device One-way radio pager receiver device Satellite radiolocation receiver device There are also amendments, additional frequency bands and update of technical parameters made for the existing schedules. The schedules are: Cellular mobile access device Short range communications device Leased channel radio access device Wireless access device Very small aperture terminal Security device Wireless microphone device Short range communications device
to have an online payment facility to pay for the application fee, SKMM launched e-payment services in August 2008. Before August 2008, the modes of payment for e-Spektrum are by manually submitting payment to the counter by cheque, postal order, cash deposit, bank draft and bank account transfer. With the advent of this online payment, customers can now make payment using the e-payment facility. The modes of payment allowed for e-payment are either through credit cards or auto-debit. Bank Islam Malaysia Berhad has been appointed by SKMM as the Payment Gateway Provider for implementation of e-Spektrum. The e-Spektrum address is: https://espektrum.mcmc.gov.my The e-Payment address is: https://epayment.skmm.gov.my A Refresher Training on SpMS was successfully conducted from 18 to 28 August 2008 at SKMM Regional Office in Shah Alam. The training was delivered by Mr. Juan Suanrez from LS Telecom AG. The purpose of this Refresher training was to educate SpMS users especially from regional offices on the correct procedure in using the SpMS. This refresher training was also meant to train SpMS users on the new features and they are expected to train other SpMS users when they return to their offices. The training modules included the following: Administrative process in issuing new apparatus assignment licencing for all services Performing technical analysis using new SpectraEMC tool Processing cancellations, reinstatements, renewal and transfer of licence New features as a result of customisation done to the system.
Months Expired AA Action was taken on AAs, which have expired and not renewed by their holder. Regional offices were informed on AA cancellation 14 days before the client list is brought up to LC meeting for acknowledgement. The 14 days margin is provided to increase the likelihood for both regional offices to collect the outstanding payment and also to provide ample time for client to continue with payment. As of January 2008 to December 2008, 27 FIRs were raised and submitted to Enforcement Department for further action. It is important at this stage to take note that all applications sent after the cancellation have been performed and will be treated as new applications and are subject to the AA guideline conformity. Issuance of New Call Sign and Maritime Mobile Service Identification (MMSI) SKMM issued call signs to Amateur, Aircraft and Ship services. For Ship station, SKMM also issued MMSI numbers to be used for ship electronic identity. The new call signs and MMSI numbers issued in 2008 are shown in the table below: Service Maritime Aircraft Amateur Grand Total Number of call signs issued 526 64 1,625 2,215 Number of MMSI issued 210 210
New Spectrum Management System (SpMS)

The Spectrum Management System (SpMS) has undergone a few customisations. The online web apparatus assignment application submissions through the Internet is one of the customisation tasks done by SKMM, and it is known as e-Spektrum. e-Spektrum was launched in March 2008, enabling SKMM registered clients to submit their Apparatus Assignment applications through the Internet. This is an alternative way for clients to submit their applications using Internet rather than the old way of coming to SKMM offices to submit their application. One of the advantages of e-Spektrum is that it reduces data entry work which constitutes most of the processing time. e-Spektrum has been considered as one of the initiatives that SKMM took to improve SKMMs service delivery to its customers. To further enhance the system
Analogue to Digital Migration

Digital Trunk Radio Services (DTRS) Migration from analogue to digital was part of SKMMs FID plan. Towards achieving this goal, the analogue trunked radio services (TRS) providers were encouraged to start migrating to a digital system.
Table 5: Comparison of AA and SA collection for 2007 & 2008
Table 6: Total issuance of call sign & MMSI since January 2008
076
077
Digital Trunked Radio Implementation Status As a result from the AA verification work within Klang Valley, EWSB utilised the highest number of AAs with 179 channels (89%) in block A and 14 channels (7%) in block C. DTRS meanwhile utilised only seven channels (3.5%) in block A and 14 channels (7%) in block C and none in block B. Segi Maju on the other hand, utilised only six channels (3%) in block C at Casa Vista Condo Bangsar (AAs are still valid until 15 and 19 June 2009 respectively). In the Pahang and Terengganu AA verification works, a total of 52 channels for trunk radio operators were inspected. EWSB utilised the highest number of AAs with 28 channels (4.67%) in block A, eight channels (1.33%) in block B, but it had no channel in block C. Segi Maju meanwhile utilised only 14 channels (2.33%) in block A and two channels (0.33%) in block B and none in block C. Widenet Distributor (DTRS Consortium) and Textphon (Hasyon Technologies) on the other hand, did not utilise any channels in all blocks. The result of the audit works shows that all trunk radio service providers still have not migrated to their respective blocks as they are still using blocks which are not allocated to them. Migration to Digital CDMA450 from Analogue ATUR450 and other analogue services As of December 2008, total applications received for CDMA450 by Telekom Malaysia are 213 applications. Table 9 shows the total sites according to region. Region Northern Eastern Central Southern Sabah Sarawak Total BTS Table 9: Total BTS by Region Number of BTS 44 39 34 45 28 23 213 starting August 2008 onwards. To date, total ACB AA applications approved by both LCM and RAMDs Senior Director are 22, 879 applications. To date, 427 applications have been approved by LCM. Based on the current AA approved by the LCM, the offered coverage for GIRN system are as follows; Peninsular Malaysia
As part of the migration plan, SKMM advised all trunked radio operators to team up to form a consortium. As a result, three consortiums, Electcoms Group, DTRS and Hasyon Teknik were instituted. The following are the companies in each consortium: Consortium Electcoms Berhad Electcoms Group CMRS Trunk Radio Sdn Bhd Syarikat Pelatus Sdn Bhd Saturn Holdings Sdn Bhd Push-To-Talk Sdn Bhd Widenet Sdn Bhd DTRS Mal-Tel Sdn Bhd STR Communications Sdn Bhd Asiaspace (non-trunked radio operator) Hasyon Teknik Sdn Bhd Hasyon Technologies Cometron Sdn Bhd Pager Communications Sdn Bhd Samen Trunk Radio Sdn Bhd Textphone Sdn Bhd Table 7: Consortium and Companies SKMM had also proposed the frequency block arrangement for 800 MHz frequency to the following digital TRS consortiums, government and private network companies. Frequency Block 1. 2. 3. 4. A DTRS Consortium (IDEN/TDMA) Future Expansion Future Expansion Hasyon Technologies B Electcoms Wireless EWSB(GOTA/CDMA) Electcoms Wireless EWSB Electcoms Wireless EWSB Electcoms Wireless EWSB C Government/ Private Network Government/ Private Network Government/ Private Network Government/ Private Network
2.3GHz Broadband Wireless Access (BWA)

The Tender Evaluation Committee (TEC) presented the final evaluation report to the Commission on 23 February 2007. Pursuant to the approval of the evaluation, on 16 March 2007, the Minister of Energy, Water and Communications made an announcement on the successful applicants for the 2.3GHz Broadband Wireless Access (BWA) spectrum tender exercise. The successful applicants are as follows: Company Bizsurf (M) Sdn Bhd MIB Comm Sdn Bhd Asiaspace Dotcom Sdn Bhd Redtone-CNX Broadband Band (MHz) 2330 2360 2360 2390 2300 2330 2375 2400 Area of Operation Peninsular Malaysia Peninsular Malaysia Peninsular Malaysia Sabah and Sarawak
Table 10: Successful Applicants for 2.3GHz BWA Spectrum Tender The letters of announcement were issued on 30 March 2007 to the successful applicants. The companies then submitted their Bank Guarantee and DBPs. The DBPs were approved in January 2008, whereby the WiMAX operators are expected to deliver the commercial roll-out by August 2008. From January 2008 to August 2008, the WiMAX AA applications were approved by the LCM. To speed up WiMAX roll-out, LCM has authorised the approval of ACB AA applications to RAMDs Senior Director starting September 2008 onwards. To date, total WiMAX AA applications approved by both LCM and RAMDs Senior Director is 593 applications.
Sabah and Sarawak
Government Integrated Radio Network (GIRN)

On 15 February 2008 until 27 March 2008, SKMM received 650 AA applications from Sapura Secured Technologies Sdn Bhd on behalf of Majlis Keselamatan Negara. However, since the system is using a TETRA system, a wide range of bandwidth is needed to implement GIRN network. To ensure that the resource is utilised efficiently, SKMM is involved directly in this project by attending all progress meetings concerning GIRN network. Thus far, 152 channels were approved for the implementation of GIRN network. This comprised 128 channels to be used nationwide and additional 24 channels were approved to be used for the base station in the KL city area.
Trial Application On Broadcasting Service

SKMM received few applications from various parties to conduct trial on new broadcasting technologies. The descriptions of trials are as follows: Mediaflo Trial by Measat Broadcast Network System Sdn Bhd (MBNS) On 1 October 2007, MBNS in collaboration with Maxis, submitted a letter to SKMM
Application on Cellular Base Station (ACB)

From January 2008 to August 2008, the ACB AA applications were approved by the LCM. However, LCM authorised the approval of ACB AA applications to Resource Assignment and Management Divisions (RAMD) Senior Director
Table 8: Frequency Block for Consortium, Government and Private Network Companies
078
079
The details of AA for the trial are as follows: Station Location Menara Kuala Lumpur Bukit Gasing Licence Expiry 16 Jun 08 16 Jun 08 Channel Ch 11B Ch 11B Bandwidth (MHz) 1536 1536 The details of AA for the trial are as follows: Station Name Bukit Besi Licence Expiry 10 Sep 2009 Channel Ch 6b Bandwidth (MHz) 1536 Table 15: AA Details for TV3 Trial GHz to 18.675 GHz have a possibility to receive harmful interference from existing terrestrial microwave in 18 GHz band. Several meetings were held between SKMM and TTdC to discuss this matter and one of the options to mitigate the impact of interference was for TTdC to install an interference shielding at their Hub station located at UPM Serdang and Pedas Linggi to protect their network. This application was tabled to LCM on 23 May 2008 and was approved on condition that interference shields are installed prior to start of operation of the hubs. On 26 September 2008, SKMM made a visit to their Hub located at UPM Serdang and found that the installation of interference shielding was almost completed. The illustration of the installation is shown below.
to conduct a trial using MediaFLO technology. Prior to MediaFLO, MBNS conducted a trial using DVB-H technology. The trial application was approved by LCM on 5 November 2007 and the AA for the trial expired on 11 February 2008. The details of AA for the trial are as follows: Station Location Menara Haw Par Ibu pejabat Risda JW Marriott Hotel KL Licence Expiry 11 Feb 2008 11 Feb 2008 11 Feb 2008 Channel 32 32 32 Bandwidth (MHz) 8 8 8
Table 13: AA Details for MTSFB Trial However due to circumstances, the transmission of T-DMB was only transmitted from Menara Kuala Lumpur. T-DMB Trial System by Asiaspace Sdn Bhd Asiaspace Sdn Bhd has submitted three AA applications to roll out the Digital Multimedia Transmission using DAB technology in the L-Band (1467 MHz to 1492 MHz) on 27 November 2007. On 14 January 2008, Asiaspace Sdn Bhd also submitted AA application to roll out Digital Multimedia Transmission using DAB technology utilising VHF band III (174 MHz to 230 MHz). The applications were reviewed by the LCM on 3 March 2008 and they were held pending by the LCM committees at that time. The LCM agreed that the applications be held pending a development in the policy on DTT, RF and Service Plan and SRSP on L-Band by RPD. However, due to a few considerations, the LCM then agreed to approve the application on 11 September 2008 for a six-month period on a trial basis. The details of AA for the trial are as follows: Station Name TPM, Bukit Jalil Menara Kuala Lumpur One World Hotel Licence Expiry 14 Mac 2009 14 Mac 2009 14 Mac 2009 TX (Mhz) 1454.672 1454.672 1454.672 Bandwidth (Mhz) 1536 1536 1536
Unmanned Aerial Vehicle (UAV)

Unmanned Aerial Vehicle (UAV) is a remotely controlled or autonomous aircraft used for surveillance and strike missions. The aircraft is used in high-risk operation, where the usage of manual aircraft is impossible. A consortium known as Unmanned Systems Technology Sdn Bhd (UST) in collaboration with the Ministry of Defense, has developed UAV to conduct surveillance of the countrys land and sea borders. On 17 and 18 March 2008, UST invited SKMM to carry out frequency scanning test during UAV Operational Test at Mersing Airstrip, Johor to ensure that all radio communication apparatus being used during the test was in accordance to the frequency regulated in the CMA 1998 and Spectrum Regulation. During the trial, the aircrafts were equipped with video cameras and data-link apparatus to provide the targeted surveillance for Malaysias land and sea borders. As a result of frequency scanning works in Mersing, SKMM had identified a specific frequency band for UAV applications.
Table 11: AA Details for MBNS Trial DVB-H Trial System by U Television Sdn Bhd On 22 August 2007, UTV submitted AA Applications to SKMM to install DVB-H system at three locations in Klang Valley. LCM approved the application on 22 November 2007 for a six-month period on a trial basis. Upon expiry, in April 2008, SKMM received additional AA applications from UTV on their DVB-H systems. The applications were approved by LCM on 22 May 2008. The details of AA for the trial are as follows: Station Location Berjaya Times Square Usj Summit UPM Tower (Ch 49) Tropicana Golf & Country Resort Goldcourse Hotel (Ch 49) Casa Vista (Ch 49) Bukit Gasing (Ch 49) Bukit Lanjan-G1519 (Ch 49) Sri Damansara (Ch 49) Table 12: AA Details for UTV Trial T-DMB Trial System by Malaysian Technical Standard Forum Berhad (MTSFB) On 6 November 2007, MTSFB submitted AA Applications to SKMM to install T-DMB trial system in the Klang Valley. LCM approved the application on 22 November 2007 on a six-month trial basis. Licence Expiry 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 3 Dec 08 Channel Ch 49 Ch 49 Ch 49 Ch 49 Ch 49 Ch 49 Ch 49 Ch 49 Ch 49 Bandwidth (Mhz) 8000 8000 8000 8000 8000 8000 8000 8000 8000
IPSTAR
SKMM received AA applications from TTdC on 20 November 2007 to install two satellite earth stations hubs for a broadband network using IPSTAR satellite that is owned by a Thailand company called Thaicom Public Company Ltd (Thaicom). IPSTAR satellite is a telecommunications satellite launched into geosynchronous orbit by Thaicom Public Company Limited (formerly named Shin Satellite). It was designed for high speed, two-way broadband communications over an IP (Internet Protocol).Its network utilises Ku-Band spectrum for user applications and Ka-Band for hub communications. Thaicom claimed that the Ku-band spectrum provides solution for services in the Asia-Pacific region with a high-link availability for VSAT user applications. However, the service availability is yet to be operationally proven, especially, on rain attenuation compensation for both Ku and Ka bands. Analysis was made on the current spectrum usage within the bands identified by the IPSTAR network. Based on the analysis, it was found that some of the spectrums requested by TTdC especially the Ka-band downlink frequency from 18.3
Awareness Programme In 2008, SKMM conducted seven Apparatus Assignment workshops with industry and government agencies at DiGi HQ Subang Hi Tech, Persatuan Nelayan Miri, Sarawak, Jabatan Laut Bintulu, Sarawak, Jabatan Laut Mersing, Johor, Port Authority Johor Bahru, Johor, Pengusaha Feri Mersing, Johor and SIRIM Johor Bahru, Johor. Participants of these awareness programmes were mainly from various government enforcement agencies and fishery communities. Involvement In International Events SKMM was also involved in international events in collaboration with Spectrum, Engineering and Interference Resolution Department and International Technical Co-ordination Department. Below is the list of events which saw involvement of SKMM staff members: Event Formula One GT Japan MotoGP A 1 GP Duration 21 23 Mac 2008 20 22 Jun 2008 17 19 Oct 2008 21 23 Nov 2008 Location Sepang International Circuit, Sepang, Selangor
Table 14: AA Details for Asiaspace Trial T-DMB Trial System by Sistem Televisyen Malaysia Berhad (TV3) On 10 November 2008, SKMM received a letter and trial proposal from TV3 to conduct digital TV trial (T-DMB). LCM approved the application on 27 November 2008 with a six-month trial basis and the trial start date will be upon commissioning of the transmitter.
Table 16: International Events
080
081
For 2008, SKMM performed site verification work in six regions/areas. A total of 1,638 apparatus have been verified in 2008 as outlined below: Region Sabah Central Southern Northern Sarawak Eastern Total Total No. of Inspected Stations in 2007 139 62 100 80 25 70 476 Total No. of Inspected Stations in 2008 374 273 433 162 213 183 1,638 In 2008, DiGi Telecommunications Sdn Bhd was identified as having the highest non-compliances percentage, (35.5%) compared to other major operators for which the percentage of non-compliances was less than 5%. As a result of our inspection, applications by telcos increased tremendously. Waiting investigation report from NRO Waiting action from RTM 2 1 Detailed interference complaints are available at http://aduanadmin.skmm.gov.my/
Field Strength Measurement Activity

SKMM and particularly the broadcast unit joined two field strength measurement activities with two licencees namely Rimakmur Sdn Bhd (Suria FM) and BFM Media Sdn Bhd. Both of these measurement activities were performed together with Telekom Malaysia Berhad as well. The measurements were executed to get the signal strength values at a few test points within the coverage areas. This is to analyse or justify any possible interference issues that might occur due to the FM transmissions. The field strength measurement work with Rimakmur Sdn Bhd (Suria FM) was performed on 4 August 2008 at seven locations, Seri Perdana Putrajaya, Balai Polis Sepang, Sek Men Keb Sg Pelek, Costa Rica Port Dickson, Hospital Seremban, Mantin and TM Nilai. This activity was done annually by Telekom Malaysia Berhad for Rimakmur Sdn Bhd and SKMM was involved to verify the signal strength measurements captured. The measurements were taken based on the signal strength received from Gunung Ulu Kali, Gunung Ledang and Gunung Telapak Burok. SKMM also joined the field strength measurement work with BFM Media Sdn Bhd on 12 November 2008 at six locations namely Pantai NS, Semenyih, Dataran Merdeka, Bukit Petaling (Istana Negara), Masjid Al-Bukhari (Jalan Loke Yew) and Pusat Bandar Damansara. The work was actually a re-measurement condition that SKMM put to BFM Media Sdn Bhd due to unsatisfactory signal strength results given to SKMM in their trial FM radio transmission report. For each location, the signal strength was measured based on the frequency given to BFM Media Sdn Bhd as well as for the adjacent channels (200 kHz separation).
Study Visits
In 2008, three study visits were conducted in order to increase knowledge and skills in relevant technologies. The study visits conducted were: Digital Radio Mondiale (DRM) at Stesen Pemancar RTM Kajang (Luar Negeri); Aeromobile trial demonstration by DiGi Telecommunications Sdn Bhd Ship station visit at Bintulu Port.
Table 17: Number of Apparatus Verified Table 18 below shows the comparison of non-compliances committed by major operators, during the AA audit works that were carried out in six regions/ areas for year 2008. Telco DiGi Celcom Telekom Maxis Total AA Verified 338 462 303 403 No. of Compliance AA 218 443 296 399 No. of Non Compliance AA 120 19 7 4 % of Non Compliance 35.5 4.1 2.3 1.0
NASMOC and Spectrum Engineering and Interference Resolution

Spectrum Monitoring
Spectrum occupancy measurement was performed at all NASMOC stations on 29 July, 27 September and 20 December 2008. Spectrum occupancy bands are: Aeronautical 108 to 137 MHz Private network 138 to 139.4 MHz and 142.6 to 144 MHz Amateur 144 to 148 MHz Maritime 156 to 157.5 MHz and 160.6 to 162 MHz Private network 443 to 444 MHz and 488 to 449 MHz Trunk radio 806 to 821 MHz and 851 to 866 MHz WiMAX 2300 to 2400 MHz WiMAX 2504 to 2688 MHz Field strength measurements were performed weekly for all FM radios and TV transmitters at all NASMOC stations starting 30 July 2008.
AA Radio Inspection
SKMM conducted frequency inspection and site verifications. In order to ensure that AA holders comply with the assignment given to them, inspections at their apparatus sites were conducted periodically. Area Sepang & PD Sabah Bintulu Terengganu Johor Perak Total Region Fixed 171 266 132 120 299 96 1,084 Land Fixed 102 102 81 59 131 40 515 Broadcast 0 6 0 4 3 26 39
Spectrum Co-ordination
International Technical Co-ordination
The International Technical Co-ordinations (ITC) activities involve co-ordinating assignments of radio frequency spectrum on space satellite systems and terrestrial systems with foreign authorities and the International Telecommunication Union (ITU). These activities comply with provisions in the Radio Regulations (RR) of ITU, which is the international regulation that regulates use of frequencies across the world. The ITC focuses on managing the co-ordination of the Malaysian space satellite networks under the MEASAT series with priority on completion of co-ordination for MEASAT filings at 5.7E and 46E, in line with MEASATs launch plans.
Table 18: Number of Apparatus Verified Table 19 below shows that the highest number of AAs verified are from fixed service at 1,084 followed by land fixed at 515 and broadcast at 39 AAs. No. of Compliance AA 232 345 193 149 376 145 1,440 No. of Non Compliance AA 41 29 20 34 57 17 198 Non Compliance % 15.0 7.8 9.4 18.6 13.2 10.5 12.1
No. of AA Verified 273 374 213 183 433 162 1,638
Spectrum Interference
Spectrum Engineering and Interference Resolution (SEIR) Department 3 received 19 interference complaints in Q3 and 39 complaints in Q4 of 2008. Six complaints are still pending for resolutions. Status of pending complaints: Status Investigation Quantity 3
Space Satellite Systems: Requests for Co-ordination Published by ITU International Weekly Circular
300 responses to Requests for Co-ordination for space satellite systems published in the ITU International Weekly Circular were processed during
Table 19: AA Site Verification Summarised for 2008
082
Jan-Dec 2008
083
Submitted Filings to ITU Total 2008 25 21 2008 Target 11 21 2008 Target 200 MEASAT Satellite Networks Earth Stations Table 3: Filings Processed SKMM is a member of four technical border co-ordination committees: 1) Frequency Assignment and Co-ordination Singapore, Malaysia and Brunei (FACSMAB); 2) Joint Technical Committee between Malaysia Thailand (JTC); 3) Joint Committee on Communications between Malaysia Indonesia (JCC); and 4) Trilateral Co-ordination Meeting among Indonesia, Malaysia and Singapore (Trilat). These committees co-ordinate frequency registrations for stations along the designated areas, resolve reported interference cases, carry out frequency planning for future services and harmonise existing band plans. SKMM ensures that all Malaysias co-ordinated frequencies at the above committee meetings are notified to ITUs Master International Frequency Register (MIFR). These frequencies will then be protected should there be interference from other users from neighbouring countries 1. Frequency Assignment and Co-ordination Singapore, Malaysia and Brunei (FACSMAB) a. FACSMAB is a monthly co-ordination meeting. For 2008, 12 FACSMAB meetings were held. These meetings discussed frequency-related matters, policy and regulatory updates and other pertinent areas to strengthen regional co-operation and relationship within the three countries. In addition, the member countries will share the knowledge on the implementation of new technology. b. 55 Malaysian frequencies were registered at FACSMAB in 2008. Meeting The database can be accessed through a dedicated dial-up system and it is also accessible from the ITU website (www.itu.int). 794 795 796 797 798 799 800 These meetings discuss frequency related matters, policy and regulatory updates as well as other pertinent areas to strengthen regional co-operation and relationship amongst the three countries. In addition, the nations share learning gained during implementation of new technologies within respective countries. 801 802 803 804 Venue Singapore Virtual Brunei Malaysia Virtual Singapore Malaysia Brunei Virtual Virtual Malaysia Date 25 Jan 08 21 Feb 08 17 Mar 08 17 Apr 08 26 May 08 19 Jun 08 31 Jul 08 21 Aug 08 25 Sep 08 23 Oct 08 27 Nov 08 Frequency Registrations Malaysia 10 7 1 1 29 6 Singapore Brunei 1 3 3 1 3 6 5 14 16 4 2 2 1 6 805 Sub total Grand total Singapore 16 Dec 08 1 55 140 7 24 11 61 Summary of meetings held is shown above, including the Review Meeting. c. The following subjects were addressed by FACSMAB in 2008: Mobile Communications Onboard Aircraft (MCA) Review on the 2300 MHz and 2500 MHz Band Plans Interference Resolution and Sharing in 880 890 MHz Band (EGSM) Digital Wireless Microphones FACSMAB Web Portal d. The following items have been identified for future FACSMAB work items for the first half of 2009: IMT in 450 470 MHz band Intelligent Transport System (ITS) in the 5.9 GHz band L-Band Spectrum Usage at the Border Areas Electronic News Gathering (ENG) Amateur Radio in 5 MHz band (Secondary) Unmanned Aerial Vehicle (UAV) e. FACSMAB is currently working out the digital migration plan for terrestrial television so as to align the operating parameters (network synchronisation, uplink and downlink transmit ratio) for the broadcasting band within the common border areas. Harmonisation of other frequency bands to cater towards the introduction of new radio services are also being worked out for the border areas. f. The updated FACSMAB database (as of December 2008) was successfully uploaded in Citrix to allow access and sharing between RAMD users. g. A FACSMAB Web Portal project will develop the online portal for members to disseminate and share information. This effort stands to increase public awareness of FACSMABs roles and work activities. The portal is targeted for Q4 of 2009. 2. Joint Technical Committee (JTC) on Co-ordination and Assignment of Frequencies along Malaysia Thailand Common Border Meeting a. JTC meets twice yearly. The 15th JTC Meeting was successfully held from 22 to 24 December 2008, hosted by SKMM in Kuala Lumpur. b. JTC deliberated on policy and regulatory updates, frequency related matters, interference issues as well as other significant areas to strengthen the relationship and regional cooperation between the two countries. In addition, both countries shared information on the implementation of new and immerging technology within their respective countries.
2008 and shown below: Total 2008 300 No. of networks processed Table 1: Requests for Co-ordination These responses were communicated to the countries concerned and thereafter, co-ordination was carried out on a bilateral basis to reach an agreement that ensured the concerned satellite networks could co-exist without causing harmful interference to one another.
Registration Data at ITU for Maritime Mobile Service Identity (MMSI)

The Maritime Mobile Access and Retrieval System is an online information system with a ship station database and accessible to the maritime community. The system is primarily intended to support the Global Maritime Distress and Safety System (GMDSS). It used to identify ships in distress besides providing pertinent vessel information. MMSI is a nine-digit number assignment system that uniquely identifies a maritime mobile service. For ship stations, the MMSI comprises of a three- digit Country of Registration identifier (Maritime identification Digits or MID) followed by a six-digit ship identity. The ITU has allocated one MID to each country and Malaysias MID is 533. ITC submitted 213 MMSI numbers belonging to Malaysian registered vessels for registration in 2008. Registered MMSI to ITU TOTAL Total 2008 213 2008 Target 200
Intersystem Satellite Co-ordination Meetings

The Intersystem Satellite Networks Co-ordination (ISNC) meetings were scheduled to resolve outstanding issues on harmful interference between affected satellite networks belonging to other countries and the MEASAT Satellite networks. Six meetings were planned for 2008 with Korea, United Arab Emirates, Australia and United Kingdom. Co-ordination was also carried out through correspondence with Saudi Arabia and China. Detailed co-ordination was carried out for each of the frequency assignments of the affected satellite networks. Upon co-ordination completion, ITU will be notified by both parties and the process of registration at the Master International Frequency Register will follow thereafter. Details of the meetings held in 2008 are shown below: No. 1. 2. 3. 4. Date (2008) 16-20 Jun 7-10 Jul 17-21 Nov 1-5 Dec Country Korea United Arab Emirates United Kingdom Australia Venue Korea Abu Dhabi London Melbourne
Table 4: Registered MMSI to ITU
Border Technical Co-ordination

Border Co-ordination ensures harmonised use of spectrum at border areas by efficiently co-ordinating the frequency spectrum amongst neighbouring countries. This is carried out in accordance with relevant national regulations and international conventions and regulations.
Table 2: Meetings Conducted and Participated
Filings for Frequency Assignments Submitted to ITU for Government and MEASAT Satellite Networks
ITC processed and submitted 25 filings of MEASAT satellite networks and 21 registrations of frequencies for earth stations to ITU in 2008. Total filings processed and submitted for 2008:
084
085
bilateral meeting but concern all three parties. c. The outcome of the STSC meeting was discussed in this meeting and it was decided that a Special Trilateral Co-ordination Meeting be convened to seek a common agreement in solving the interference issue experienced by the EGSM from the CDMA2000 system. d. It was agreed that future Trilat meetings be increased to twice a year and this decision had been approved by the management. e. The next Trilat Meeting (Fifth Trilat) will be held in Indonesia in Q2 of 2009. With the need to resolve interference issue experience by Malaysian EGSM operator from the Indonesia CDMA operator, two ad-hoc meetings were conducted by ITC department: 1) Special Trilateral Co-ordination Meeting between Indonesia, Malaysia and Singapore (Special Trilat). 2) Special Technical Sub-Committee (STSC) Meeting on Interference Resolution and Sharing in Band 880 890 MHz. 5. Special Trilateral Co-ordination Meeting between Indonesia, Malaysia and Singapore (Special Trilat) a. The Special Trilat Meeting was held at iDA HQ, Suntec Tower 3, Singapore from 17 to18 December 2008. b. The Special Trilat was convened to specifically discuss the interference and sharing issue between CDMA2000 systems in Batam/Bintan area and EGSM in Singapore and South Johor. c. Prior to this meeting, a Joint Measurement activity between PT. Mobile8 and Maxis was conducted in Southern Johor from 15 to 16 December 2008. This helped all interested parties in analysing the level of interference from CDMA transmission in Batam/Bintan area received by EGSM base station in Southern Johor. d. The Meeting could not conclude the interference and sharing issue, thus it will be further discussed in the next Trilateral Co-ordination Meeting schedule to be held in Q2 of 2009 in Indonesia. 6. Special Technical Sub-Committee (STSC) Meeting on Interference Resolution and Sharing in Band 880 890 MHz. a. The First Meeting of the STSC was held at SKMM HQ, Cyberjaya from 9 to 10 September 2008. b. The STSC was formed during the Sixth JCC Meeting in Langkawi. It was attended by the regulatory authorities and cellular operators from Indonesia, Malaysia and Singapore. c. Members of STSC have to unanimously agree on the proposed band partitioning which is seen as the way forward in solving this issue. d. The outcome of STSC Meeting was tabled at the Trilateral Co-ordination Meeting in Kota Kinabalu later that year.
c. JTC had to defer issues pertaining to Broadcasting specifically related to new band allocation for band I, II, III and V to be utilised for Digital Terrestrial TV (DTT) until the formation of Thailands National Broadcasting Committee (NBC) in 2009. d. The next JTC meeting (JTC16) is scheduled to be held in Thailand in May 2009. 3. Joint Committee on Communications between Malaysia Indonesia (JCC) a. JCC convenes once a year. The Sixth JCC Meeting was successfully held from 12 to 14 August 2008, hosted by SKMM in Langkawi, Kedah. b. JCC deliberated on policy and regulatory updates, frequency related matters, interference issues as well as other significant areas to strengthen the relationship and regional co-operation between the two countries. In addition, both countries shared knowledge on the implementation of new and emerging technology within their respective countries. c. Amongst issues that required immediate attention from both regulatory authorities were on the Interference Resolution and Sharing in Band 880890 MHz between EGSM and CDMA2000 systems. A Special Technical Sub Committee (STSC) was established to look into this issue and it will be discussed at the next Trilateral Co-ordination Meeting between IndonesiaMalaysia-Singapore. d. Prior to the 6th JCC Meeting, four joint measurements (between SKMM and DG Postel) on FM radio and TV broadcast channels were carried out in Penang, Melaka, Pekan Baru (INS) and Medan (INS) common border areas. The joint measurements schedule for 2008 is shown in the table below: No. 1. 2. 3. 4. Date (2008) 5 - 7 May 3 - 5 Jun 23 - 25 Jun 21 - 22 Jul Area Penang Pekan Baru Melaka Medan
Notification of Frequency Assignments Submitted to ITU for Malaysias Terrestrial Stations Along Border Areas
ITC submitted 2,620 notifications for terrestrial frequency assignments to ITU for registration with Master International Frequency Register (MIFR) to obtain international recognition and protection, for 2008. Registered MIFR to ITU TOTAL Total 2008 2,620 2008 Target 200
To undertake this migration process, SKMM worked with industry partners to establish a working group (WG) under the Consultative Group on Numbering or CGON. The WG handled the awareness, consumer and technical, consumer matters to ensure smooth progress and least service interruption. The CGON Working Group was established in March 2008 and meetings are conducted monthly. CGON will establish the migration framework document on the Impact Assessment on the Implementation of 3 + 8 Mobile Numbering as guidance for all related parties and this framework will be published in the SKMM website for public knowledge. The contents of the migration framework document will be shared with the industry during the CGON working group meeting and the framework will be published on Q4 of 2009. b. Prefixes for New 3G Players SKMM decided that new 3G players i.e. DiGi Telecommunications Sdn Bhd and U-Mobile Sdn Bhd (formerly known as MiTV Corporation Sdn Bhd) will have the same numbering format as the existing mobile service providers, in accordance with the NEAP. DiGi Telecommunications Sdn Bhd and U-Mobile Sdn Bhd have been assigned 010 and 018 prefixes respectively. The total number of assignments is as follows: DiGi Telecommunications Sdn Bhd 200 0000 299 9999 360 0000 399 9999 460 0000 469 9999 560 0000 569 9999 660 0000 669 9999 760 0000 769 9999 820 0000 829 9999 880 0000 889 9999 900 0000 989 9999 U-Mobile Sdn Bhd 200 0000 299 9999 350 0000 399 9999 400 0000 409 9999 460 0000 474 9999 570 0000 579 9999 660 0000 669 9999 760 0000 769 9999 770 0000 779 9999 780 0000 794 9999 870 0000 874 9999 900 0000 989 9999 Total : 3.25 million
Numbering
Background
This report provides the departments activities for 2008 involving the following scope of work: 1) Numbering Assignment and Management 2) Numbering Regulations 3) Issues
Table 5: Joint Measurement Conducted and Participated e. The next JCC meeting (5th JCC) will be held in Indonesia in Q3 of 2009. 4. Trilateral Co-ordination Meeting between Indonesia, Malaysia and Singapore (Trilat). a. Trilat convenes once a year. The Fourth Trilat Meeting was successfully held from 30 to 31 October 2008, hosted by SKMM in Kota Kinabalu, Sabah. b. Trilat is the platform for the regulatory bodies of Indonesia, Malaysia and Singapore to discuss on frequency-related matters as well as the implementation of new technologies which may not be discussed during
Numbering Planning and Management

To ensure efficient usage, management of numbers, facilitate new services and new technological development, the following activities were carried out during the year in review: a. The Way Forward for Mobile Number Expansion To ensure reasonable capacity of mobile numbers be reserved for potential new services, markets and technological development, SKMM recommended to increase the existing mobile numbers capacity. The new format will comprise a three-digit prefix and eight-digit subscriber number or 3+8 numbering scheme.
Total : 3 million
Table 1: New number assignment for DiGi (prefix 010) and U-mobile (Prefix 018) The assignment of the numbers under these prefixes was not exclusive to the new 3G players so as to ensure efficient use of the numbers.
086
087
As approved and instructed by LCM, all 2.3GHz and other BWA players will be assigned with prefix 0158 as indicated in the NEAP. f. Other Numbering Assignments The table below outlines all the assignments for numbering in 2008. Numbering Type International Signaling Point Code Independent Short Code Special Service Number Numbering Amount 1 1 1 7 1 8 1 1 1 52 Public Switch Telephone Network (PSTN) 14 16 7 19 Table 5: Numbering Assignment for 2008 Licencees TT dotCom Tune Talk DiGi TM DiGi Celcom TMB Maxis Packet One TM DiGi Maxis TT dotCom Packet One 108 3 16 Jan Feb Mac Apr May Jun Jul Aug 3 Month Total Subscribers Sarawak 2,173 2,144 2,109 2,066 2,033 2,012 1,969 1,943 Sabah 600 592 586 579 573 567 555 551 Below is the latest utilisation of mobile numbers as of November 2008. Region Central Northern Southern SKMM will audit the progress from time to time to ensure the smooth migration of existing subscribers to new CDMA 450 and 800 before closing down the ATUR 450 which uses the analogue system. Audit On the Prefix-010 Using for Mobile Cellular Service by DiGi In November 2008, SKMM carried out a coverage audit test on the DiGi 3Gs Network at Subang Jaya (nearby Carrefour) and the Subang Hi-tech areas. The purpose of the coverage test was to ensure that the prefix 010 assigned to them was working successfully. The test was carried out as follows: Voice Call: On-net test and inter-net test. Video Call: On-net and inter-net test. Internet surfing. The above tests were successfully completed without any interruption to the service and network. Audit on XOX Com and Tune Talk for Prefix 010 To ensure the prefix and the mobile numbers assigned will be utilised, SKMM Eastern Sabah Sarawak Grand Total Utilised 14,610,035 7,281,361 4,362,514 3,837,437 2,728,084 2,451,924 35,271,355 Available 5,989,965 3,378,639 2,087,486 1,892,563 1,782,916 1,847,076 16,978,645 Total 20,600,000 10,660,000 6,450,000 5,730,000 4,511,000 4,299,000 52,250,000 Total Audit On the Prefix-011 Using for ATUR 450 The total subscribers for ATUR service in Sabah and Sarawak have decreased in 2008. This was due to the migration to CDMA and the option to choose another network available within their areas. Below is the latest subscriber information for Sabah and Sarawak, for the first eight months of 2008. organised an audit on the network availability. As assured by these service providers, they will start to roll out the services in early 2009 and their network was still under implementation. Audit on Mobile Number SKMM carried out an audit exercise for the utilisation of mobile number in January and June 2008 for DiGi and U-Mobile, respectively. Besides static purpose the numbering audit was carried out due to request for the additional mobile numbers to cater business demand by DiGi and U Mobile. In November 2008, SKMM requested reports from all mobile service providers on the utilisation of mobile numbers for the purpose of industry mobile numbering development. This was to ensure the latest take-up rates of mobile numbers so that it can support the business demand within the next two years.
c. MVNO for Cellular Services For 2008, there were two new entries within the cellular service market. XOX Sdn Bhd and Tune Talk Sdn Bhd are categorised under thick MVNO and have been assigned the following prefixes and mobile number blocks: Prefixes 010-300 0000 to 010-349 9999 010-500 0000 to 010-549 9999 Mobile Service Providers/MVNO XOX Sdn Bhd Tune Talk Sdn Bhd Total Numbers 500 K 500 K
Table 2: Assignment MVNO Prefix and Mobile Numbers d. Prefix 014Y For the first half of 2008, LCM approved the assignment of additional mobile numbers to DiGi, Celcom and Maxis carrying the prefix of 014 ranges. The numbers are as follows: Prefixes 014Y 014-9XX XXXX 014-5XX XXXX 014-7XX XXXX Mobile Service Providers/MVNO DiGi Celcom Maxis Total Numbers 1 million 1 million 1 million
Table 6: 011 Prefix Subscriber in Sabah and Sarawak
Table 3: Prefix 014Y Assignment The assignment of mobile numbers with prefix 014-XXX XXXX by SKMM which began in 2006 was to cater for the shortage of mobile numbers experienced by the mobile service providers. e. New Numbering Prefix for BWA (Broadband Wireless Access) To facilitate new markets and technological development, SKMM opened new numbering prefixes for Broadband Wireless Access services for Broadband Network Operator services using 4 + 7 numbering scheme as shown below: Prefixes 015Y 0158-820 XXXX 0158-850 XXXX 0158-850 XXXX Mobile Service Providers/MVNO Asiaspace Sdn Bhd IP Mobility Sdn Bhd Izzinet Sdn Bhd Total Numbers 10 Thousands 10 Thousands 10 Thousands
All assignments in the table except PSTN were categorised under special assignment and therefore were required to obtain approval from the LCM thus deliberation to the LCM were required. g. Numbering Audit The audit exercise mainly verifies the utilisation of numbers assigned to MSP for efficient usage and in an organised manner. Any application of mobile numbers from the mobile service providers would have to go through the audit process to ensure the applications validity. SKMM will ensure the existing assigned numbers activation to be at least 70% for the service providers to entitle for new blocks of numbers as specified in the Numbering and Electronic Addressing Plan. This is also to remind the industry that SKMM will scrutinise all numbering applications and periodically monitor the utilisation rate.
Table 7: The Utilisation Report on the Mobile Service Providers - Cellular

Utilised Available Total 52,250,000 35,271,355
60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0
11,928,311
Table 4: BWA Telephony Allocation
Grand Total
Graph 1: Total of Mobile Numbers
088
25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Central 14,610,035
089
Available Total
20,600,000
Utilised
7,281,361 3,378,639 10,660,000
Seminar On 20 and 21 May 2008, SKMM participated in the NGN and ENUM international conference held in Kuala Lumpur and organised by MYNIC Berhad. The event was important to SKMM in view of direct implication for NGN and IP-based application services introduction in the country. For 2009, SKMM is looking forward to participate in the ITU study group on NGN IP-based network and IPv6 development.
4,362,514 2,087,486 6,450,000
5,989,965
3,837,437 1,892,563 5,730,000
2,728,084 1,782,916 4,511,000
2,451,924 1,847,076 4,299,000
Northern
Southern
Eastern
Sabah
Sarawak
Graph 2: Utilisation of Mobile Number by Region Date 22 Jan 2008 9 Jun 2008 25 Aug 2008 27 Aug 2008 11 Nov 2008 Nov 2008 Activity Audit on DiGis mobile number assignment Audit on U-Mobiles mobile number assignment Audit on the prefix 011 at Sarawak region Audit on the prefix 011 at Sabah region Coverage audit on the DiGi 3Gs network using prefix 010 Audit by telcos report on the utilisation on mobile number
i) Amendment to NEAP Following the introduction of MVNO in the industry which will ride on the cellular network, they have been included in the public cellular service as in the NEAP. The NEAP Amendment for 2008 is as follows: MVNO (Cellular Service) to Public Cellular Service Addition of 3+8 mobile number structure j) Numbering Regulations The Numbering Regulation was developed to impose fees or charges on the assignment of numbers to the licencees so as to ensure efficiency in the usage of numbers. Currently, the numbers assigned to the licencees are free. The final draft of the Numbering Regulation (NR) was submitted to the Attorney Generals office (AG) by KTAK for further study and comments on the NRs content. NPD together with LASD and KTAK are still waiting for AGs feedback.
Table 8: 2008 Audit Summary h) Events Briefing on Numbering Planning Development SKMM conducted a briefing on 3+8 mobile number expansion, numbering regulation and Numbering Electronic and Addressing Plan (NEAP) to several SKMM regional offices and together with industry players as specified below: Date 23 Jun 2008 26 Jun 2008 Location Kuching Regional Office Activity Briefing and numbering audit Briefing and numbering audit Briefing and numbering audit
24-25 Jun 2008 Sandakan, Office 18-21 Nov 2008 Southern Regional Office
Kota Kinabalu Regional Office Briefing and numbering audit
Table 9: Briefing on 3+8 Mobile Number Expansion This activity was part of the awareness campaign by SKMM. It ensured that SKMM and industry players at regional offices were updated on both ongoing and future developments involving expansion of mobile numbering.
090 As ICTs progress and reach become more prevalent, so too do the challenges. It is crucial to keep up with the pace, narrowing the gap by protecting and empowering society through good governance, stricter enforcement, better infrastructure support and wider coverage.
04
Expanding Digital Reach
092 093 095 095 096 097 099 100 100 101 Nationwide Mobile Coverage: Time 1/Time 2 Projects Quality of Service Required Application Service (RAS) Rates Monitoring SKMM Complaints Bureau Consumer Issues Prepaid Registration Phishing Network Security Centre Enforcement
092
USP Overview
093
Additionally, SKMM also takes into account the number of households in a locality, the demand or wait list, and existing installed capacities of the network infrastructure optimal network resources. 2) Underserved Group Within the Community A group of people linked by similar characteristics from a socio-cultural or economic perspective within a served area with no collective and/or individual access. Therefore, the USP programme is a tool for bridging the Digital Divide by acting as a mechanism for channeling private-sector investment into unprofitable rural areas. The key tenet here is one of no gain, no loss. This means that a designated service provider incurs no loss nor makes a profit when implementing this programme. The service provider claims only for expenses incurred, at cost, and SKMM reimburses them based on a detailed claims template. cellular coverage nationwide, a new programme known as Time 3 was introduced. The objective of this programme is to increase the national population cellular coverage to 97% by 2010. The Time 3 programme is targeted at extreme rural areas and villages with a population density of below 80 persons per square kilometre. Key target areas include Felda, Felcra, plantations, Orang Asli settlements, new tourist spots and significant Federal Highways. The approach taken in implementing Time 3 covered provisioning communication towers for the purpose of Infra Sharing (IS) and Domestic Roaming (DR) in providing the cellular service. Hence, there was cost savings for the service providers; eliminating difficulties in acquiring sites and high local authority fee, whilst ensuring the smooth operation of the project. The announcement of the programme was made by YB Minister of Energy, Water and Communications during the opening of the USP Technology Symposium in Seremban on 12 June 2008.
Nationwide Mobile Coverage: Time 1/Time 2 Projects

The Universal Service Provision (USP) programme provides collective and individual access to basic telephony and Internet services throughout the country. This is because network facility providers, understandably, tend to focus on commercially lucrative areas and this has created a gap between the haves in urban areas, and the have-nots in the rural areas. Often referred to as the Digital Divide, this imbalance in communications access can have social ramifications if not addressed at the national level. Consequently, USP targets are divided into underserved areas and underserved groups within the community. The classifications are defined as follows: 1) Underserved Area In relation to broadband access service, it is defined as any area where the penetration rate for broadband subscribers in Malaysia is below the national broadband penetration rate or where broadband access services are not sufficiently available as may be determined by the Commission. In relation to public cellular services, it is defined as any area with a population density of 80 persons per square kilometre or less, or where public cellular services are not sufficiently available as may be determined by the Commission. In relation to Public Switched Telephone Network (PSTN) services, it is defined as an area where the PSTN subscribers penetration rate is 20% below that of national PSTN penetration or where the PSTN services are not sufficiently available as may be determined by the Commission.
Time 3 Implementation Plan

Time 3 programme involves building 1,250 towers in two phases. Under Phase 1,799 towers would be erected from July 2008 to December 2009. Out of 799 towers, 250 towers are to be funded by the service providers while the remaining 549 by the USP Fund. Population coverage is expected to increase to 95% with completion of this phase. Phase 2 requires 451 towers to be built from October 2009 to December 2010. Completion of Phase 2 will see the national population coverage increased by another 3% to achieve the overall Time 3 target of 97%. A distribution of 1,250 tower sites by states are shown in the table below: Time 3 Sites by State No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. State Sabah Sarawak Pahang Kelantan Terengganu Perak Johor Kedah Negeri Sembilan Selangor Total Total 278 257 243 105 98 76 74 47 45 27 1,250
licencees in the first quarter of 2009.
Time 3 Progress
The construction of the Celco-funded towers throughout the country started in July 2008. As of 31 December 2008, 114 towers were successfully completed, exceeding the target of 100 towers set for completion by end of 2008. The table below summarises the location of the 114 completed towers: State Kedah (7) Perak (14) Selangor (1) Negeri Sembilan (12) Johor (15) Pahang (36) Terengganu (21) Kelantan (24) Sabah (66) Sarawak (54) Total (250) Celcom 1 1 1 7 6 4 1 13 9 43 DiGi 2 8 0 0 2 4 2 0 8 0 26 Maxis 0 9 2 6 18 10 45 Total 3 9 0 1 9 19 8 7 39 19 114
Time 3 Programme
In 2008, under the direction of YB Minister of Energy, Water and Communications or KTAK to further expand Coverage Mapping Malaysia
Quality of Service
QUALITY OF SERVICE FOR BROADBAND ACCESS SERVICE Mandatory Standards for Quality of Service
Determination No. 1 of 2007, Mandatory Standards for Quality of Service for Broadband Access Service is the instrument used to ensure compliance of service providers to minimum standards for broadband access service. It was enforced with effect from 1 January 2008 and consists of 14 standards. Service providers are required to submit their network performance report every six months to SKMM based on the QoS Mandatory Standards.
Note: Melaka, Perlis, Pulau Pinang, WP Labuan & KL are not included under Time 3 because the population coverage for each state has exceeded 99%.
Time 3 Funding
A funding mechanism for the Time 3 programme is through the concept of PrivatePublic Partnership whereby the cost for the project is shared between SKMM and the service providers. Total funding of RM1.43 billion shall be disbursed from the USP Fund for Phase 1 of Time 3 programme. The disbursement of the USP Fund to the successful service providers shall be made through an open bidding exercise as stipulated under Regulation 5(1) of the Communications and Multimedia (Universal Service Provision) Regulations 2002. The Request for Proposal (RFP) for this exercise will be issued to eligible
Compliance of Service Providers to the Mandatory Standards for Quality of Service

Based on the reporting period ending 30 June 2008, six submissions were received. The tables on pages 94 and 95 delineate the performance against the QoS Mandatory Standards:
Legend:
T2 border
T3 border
094
Licencees
095
% Bill Complaints Resolved Within 15 Bus Days 90.61% 92.24% 97.14% 0.00% YES YES YES 0.00% Licencees % Bill Complaints Resolved Within 30 Business Days 99.29% 99.14% 100.00% 0.00% YES YES YES 0.00% Number of General Customer Complaints Per 1000 Lines p.a. 5.05 290.89 3.14 7.32 YES YES YES YES Licencees % of Number of Sample With Network Latency Below 85ms (95%) 100.00% 97.96% 100.00% YES YES YES YES YES % of Numberof Sample With Bandwidth Utilisation More Than 80% of Subscribed Level (95%) 100.00% 100.00% 100.00% 100.00% 100.00% YES YES YES YES YES The following instruments have been issued and registered to support the implementation of RAS: 1) Ministerial Determination on the list of Required Applications Services (Determination No. 1 of 2004); 2) Ministerial Determination on Required Application Services (Determination No. 2 of 2005); and 3) Ministerial Direction on Required Application Services (Direction No. 2 of 2005). For an emergency contact, it must be a number which everyone can remember easily. The Government with the co-operation of service providers implemented improvements to the emergency call centre services using an integrated number, 999, to replace three sets of different emergency numbers such as 994 for Fire Brigade and 991 for Civil Defense besides 999 used by Polis Diraja Malaysia and TM emergency services call centres. In an effort to reduce crank calls*, a Crank Call Reduction Committee was established. The committee is chaired by SKMM and membership comprises fixed and cellular service providers. Amongst the measures implemented to reduce false and crank calls are: 1) Broadcast of warning SMS by service providers to all mobile users; 2) Issuance of warning letters by SKMM to owners of lines that were used to make crank calls.
% Complaints of Bills Issued 0.29% 0.59% 1.21% 0.00% YES YES YES YES
Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd DiGi Telecommunications Sdn Bhd Optical Communications Engineering Sdn Bhd
Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd DiGi Telecommunications Sdn Bhd Optical Communications Engineering Sdn Bhd
Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd Optical Communications Engineering Sdn Bhd
Not Reported Not Reported
Not Reported
Not Reported
DiGi Telecommunications Sdn Bhd 100.00% 100.00%
Table 1: Compliance with Standards on Billing Performance
Table 2: Compliance with Standards on Billing Performance Table 5: Compliance with Standards on Network Performance Fulfillment of Installation Orders
Licencees Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd DiGi Telecommunications Sdn Bhd Optical Communications Engineering Sdn Bhd
% Fulfilled Within 24 Hours (80%) 100.00% 99.82% 100.00% 28.50% 100.00% 98.00% YES YES YES NO YES YES
% Fulfilled Within 48 Hours (90%) 100.00% 99.97% 100.00% 34.20% 100.00% 98.00% YES YES YES NO YES YES
% Fulfilled Within 7 Days (100%) 100.00% 100.00% 100.00% 64.25% 100.00% 98.00% YES YES YES NO YES NO Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd DiGi Telecommunications Sdn Bhd Optical Communications Engineering Sdn Bhd Licencees
% of Packet Loss (1%) 0.51% 0.00% 0.00% 0.00% 0.00% YES YES YES YES YES
% of Network Availability (99.99%) 99.99% 99.99% 100.00% 100.00% 100.00% 99.72% YES YES YES YES YES NO
Not Reported
Rates Monitoring
Communications and Multimedia (Rates) Rules 2002
The Rates Rules 2002 sets out the prescribed level of rates to be charged for specified applications services. The rules cover the following services and charges: 1) Public Switched Telephone Network services Charges for Local Calls, National Calls and National Calls through operator assistance 2) Public Payphone Service Charges for Local Calls, National Calls and National Calls through operator assistance 3) Service Charge for operator assistance 4) Charge for Internet access service 5) Charge for audiotext hosting service 6) Rental on exchange line 7) Connection fee 8) Reconnection fee
Table 3: Compliance with Standards on Fulfillment of Installation Orders
Service Restoration Performance Licencees Telekom Malaysia Berhad Maxis Broadband Sdn Bhd TT dotCom Sdn Bhd Jaring Communications Sdn Bhd DiGi Telecommunications Sdn Bhd Optical Communications Engineering Sdn Bhd % Fulfilled Within 24 Hours (80%) 92.00% 98.20% 99.60% 42.40% 0.00% 92.40% YES YES YES NO 0.00% YES % Fulfilled Within 48 Hours (90%) 96.53% 98.83% 99.39% 46.51% 0.00% 100.00% YES YES YES NO 0.00% YES % Fulfilled Within 7 Days (100%) 59.56% 51.77% Not Reported 72.35% 0.00% 100.00% NO 0.00% YES NO NO
Table 6: Compliance with Standards on Network Performance
Required Application Service (RAS)

The Required Application Services (RAS) is a set of required applications that a service provider must provide to their consumers. Section 192 of the CMA 1998 states that the list of RAS may include, but not limited to, emergency services, directory assistance services, operator assistance services and services for disabled consumers.
Table 4: Compliance with Standards on Service Restoration Performance
*Crank calls, also called false calls, are calls made to an emergency call centre with a purpose other than reporting an emergency. Some of them are made for the purpose of chatting, some are obscene while others are just silent calls.
096
097
No. of Complaints
Rate Control Mechanism

Rate regulations are normally driven by consumer protection and economic reasons. In markets that are characterised by a few players (oligopoly), prices tend to be high and the supply of services and facilities can be controlled easily, resulting in bottlenecks in the upstream or downstream markets or both. As a result, service providers can price their products at prices above what would be set in a competitive market. Telecommunications is a vital service for most organisations whether engaged in services or manufacturing. Fair and low prices are considered necessary to ensure the competitiveness of economic activities in these sectors. In a globally competitive environment, it is therefore imperative that telecommunications services are competitively priced so that local providers of services and products can compete with those in other countries. The rate control mechanism is normally employed to ensure rates or tariffs are not artificially inflated or do not contain excessive economic rents (price is above the price that would be set in a competitive market) and that prices charged are fair and reflect underlying costs.
Value-Added Services (VAS) such as active numbers or family and friends for many postpaid and prepaid mobile packages. Based on SKMMs monitoring on compliance with Section 197 of the CMA 1998, covering rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to their customers, through websites, media advertisements, brochures and also through their customer service hotlines. 3) Broadband Internet Access Service Broadband Internet Access, often shortened to just broadband, is high data rate Internet access typically contrasted with dial-up access over a modem. Broadband service even for wired broadband and wireless broadband is steadily becoming more popular in homes and businesses. Service providers are now offering packages based on unlimited time or flat rate models with varying prices. Based on SKMMs monitoring on compliance with Section 197 of the CMA 1998 on the rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to their customers through websites, media advertisements, brochure and also through their customer service hotlines.
Since early January 2008, CCB commenced the use of the Aduan SKMM online complaint management system to record and update status of complaints and generation reports. The system is also accessible by the regional offices and other departments in SKMM. SKMM provides several channels for consumers to lodge their complaints; a 1800 hotline number, email, letter, fax and even walk-in complaints. In May 2008, the public page of Aduan SKMM complaint system http://aduan.skmm.gov.my was opened for online submission of complaints. It has since become one of the main channels for the public to lodge complaints.
500 450 400 350 300 250 200 150 100 50 0 Jan Feb Mac Apr May Jun 173 303 298 355 418
445 396
457 416 406
470
Consumer Issues
a. Poor Broadband Service Customers are generally not satisfied with the quality of broadband services delivered, particularly the inability of the service providers to deliver the promised speed and quality. The reason for the poor service, particularly 3G and HSDPA service, was mainly due to poor coverage and increase in the number of subscribers resulting in adverse bandwidth sharing. Many complainants also highlighted issues about advertisement content and promotion that claimed speeds of up to 3.6MB and the promise of unlimited service. To address customer expectations fairly, all broadband service providers are required to clearly state upfront the conditions or factors that can affect the quality of service such as location, distance and direction to communications tower, number of users logged in and the condition of the customer device. Service providers have also to state the conditions for unlimited use and fair usage policy up front and make available their service coverage maps at the point of registration to inform customers of the availability of the service. As a Good Consumer Practice, broadband service providers are now offering a cooling off period i.e. seven days for customers who had subscribed to the service. Customers have the option to try the service and if they are not happy with the service quality they can return the equipment within the cooling off period of seven days.
152
Jul
Aug
Sep
Oct
Nov
Dec
Months 2008
Graph 1: Number of Complaints Received by Month for 2008
No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Categories of Complaints Poor service Billing charging/dispute SMS scam SMS Mobile Content Services unsubscribed/promotional SMS, SMS contest No/Poor Service Coverage cellular, 3G, fixed line/TV transmission Content website/blog, TV, Radio, SMS, emails Telecommunication Tower/TV Parabola Not under SKMM jurisdiction Miscellaneous Spectrum Interference Unfair practice Postal and Courier Misleading promotion/advertisement Dispute Terms and Conditions Unlicenced operator Total
No. of Complaints Received 1,794 559 425 338 303 258 138 110 90 87 68 45 44 25 5 4,289
% 41.8 13.0 9.9 7.9 7.1 6.0 3.2 2.6 2.1 2.0 1.6 1.0 1.0 0.6 0.1
Rate Monitoring as at December 2008

1) Fixed Line Telephone SKMM found that there was compliance with the specific rates in terms of the line rental (access charge) and the call charges as published in website and customer service centres. 2) Cellular Phone Service SKMMs monitoring found that there were 21 packages for postpaid mobile and 14 packages for prepaid mobile, offered by the four service providers. Malaysians can now choose which cellular phone service plan best fit their needs by comparing services and rates. Service providers have provided
SKMM Complaints Bureau

Consumer Complaints Bureau (CCB)
Since SKMM set up the Consumer Complaints Bureau (CCB) to act as a focal point to deal with public complaints regarding service providers offerings in August 2007, the number of complaints received has steadily increased.
Consumer Complaints
In 2008, 4,289 complaints were received, this being almost double the 2,147 complaints received in 2007. The increase was due to the promotion of the complaints procedure as well as the launch of new services by service providers, which gave rise to many consumer issues.
12. 13. 14. 15.
Table 1: The Types of Complaints Received by SKMM
098
099
SKMM has received a number of complaints from customers on high charges for mobile data services provided through 3G or GPRS services. These customers have disputed the charges claiming that they had been billed for services that they did not use. However, the usage was found valid based on the finding. The dispute on excessive charges mostly happens to customers who are using GPRS on pay per use basis. From our observation, the customers lack of knowledge about the services or have not been given sufficient information pertaining to the usage of this service may also be one contributory factor to this issue of high or excessive bills. Suggestions have been made to the affected PCS providers to cap the billing charges for 3G or GPRS usage for their pay per use customers and this capping has been implemented in 2008. Note: DiGi capped at RM149 since May 2006 Celcom capped at RM250 since November 2007 Maxis capped at RM250 starting from June 2008 c. SMS Scams During 2008, there was an increase of complaints received regarding SMS scams. Customers claimed to have received SMSes stating that they had won certain amount of money after being randomly selected from millions of users. In order to collect the monies, the victims were required to deposit a certain amount of money as processing fee. Previously, we noticed that the sender had used foreign numbers to send the SMS. Now, there are SMS scams that are being sent using local mobile numbers. Misuse of the SMS service with intent to cheat is an offence under the Penal Code. SKMM is working closely with the Royal Malaysian Police in addressing SMS scams and public cellular service providers have also taken action to suspend local mobile numbers that had sent the scam SMS. The Commission through service providers has also undertaken consumer awareness initiatives such as publishing notices in the newspapers. Officers from the Consumer Protection Division also appeared on TV programmes and participated in radio talk shows to increase public awareness on SMS as well as Internet scams. d. SMS Mobile Content and Services SKMM continued to receive complaints regarding SMS mobile content services. Types of complaints were mainly related to: Receipt unsolicited SMS (spam) Charges for unsubscribed SMS service Inability to stop or terminate the SMS service However, the number of complaints relating to this service has decreased in 2008, compared to 2007, since the implementation of the preventive system* by the public cellular service providers in 2007. e. Poor or Lack of Service Coverage Complaints were also received on poor cellular services such as lack of coverage and dropped calls. The public cellular service providers are continuously undertaking coverage enhancement. agreed to stop the contest and co-operated in resolving the consumer issues that arose. b. ASTRO Smart Card Replacement In 2008, Astro undertook an exercise to replace the smartcard for its 2.4 million subscribers nationwide. The complaints received pertaining to this exercise ranged from disruption of service, charges imposed for technical assistance and poor customer care service in addressing complaints. Numerous meetings were held and Astro responded positively by improving its call centre services, established a barker channel and resolved specific complaints that were received. c. Minimum Contract Period Complaints were received from many subscribers on the payment of penalties for the early termination of service contract between service provider and subscribers for specific service such as 3G/HSDPA. These arose particularly for broadband or HSDPA subscription where consumers had terminated the service due to unsatisfactory quality. Service providers agreed to waive the penalty in situations where the complaint was service or product-related. In other cases, the penalty was capped at RM200 on condition that the equipment given out was returned in good working condition. d. Fair Usage Policy Another issue highlighted by the customer was on the Fair Usage Policy introduced by some of broadband service providers such as Maxis and Celcom, that set a limit to the total bandwidth available. Subscribers who had utilised bandwidth beyond the limits imposed were subject to throttling, whereby the service was still available but at lower speeds. As throttling is a new issue, SKMM will further study the matter. In the meantime, the service providers are required to clearly state this fair usage policy in their terms and conditions and promotional material.
b. Billing Problems and Charging The statistics for complaints received on billing problems and charging are provided in the table below: No. of Complaints Received 559 379 58 42 32 29 19 1,118
Current Status
As at Q4 of 2008, there were 27,125,000 cellular phone subscriptions in Malaysia. Of this total, 21,548,000 subscriptions are prepaid public cellular services and the balance 5,577,000 are postpaid public cellular services. As more than 80% of the mobile phone users in the country are prepaid users, SKMM has, through its monitoring and enforcement activities, ensured that all necessary precautions are taken and relevant processes are put in place for the registration of prepaid users, especially in relation to the recording of subscribers information. This is to ensure that the service providers accurately record subscribers information based on the information contained in MyKad, passport and other valid identification documents. In addition to the verification carried out by service providers, data that are recorded manually are put through a second round of verification by SKMM with the assistance of the National Registration Department (NRD). To date, 7.1 million users data have been verified with the National Registration Department by SKMM and of this, less than 3% were returned by NRD as unmatched. The unmatched data may have been due to errors in the spelling of the name or mismatched identification number. These are then returned to the service providers for a third round of verification and for those that cannot be rectified, their numbers will be terminated.
Adoption of Good Consumer Practices

From our analysis of the complaints and issues highlighted, we identified several actions to help improve consumer protection in the industry. They are: a) Have a cooling-off period for services sold whereby a customer who does not receive satisfactory service can terminate the contract without any penalty. b) Adopting a policy of customer satisfaction or money-back guarantee. c) Compensating customers for services not delivered as promised or for poor services rendered. d) Provide a product kit to consumers to ensure they are well versed with the features and limitation of product offered. e) Preparation of code of conduct for dealers and agents. f) Customer to be given the choice to opt in for new services instead of automatic/mandatory migration. The implementation of Good Consumer Practice by the industry will improve general consumer confidence, protect consumer interest and enhance the image and perception of the service providers in the eyes of consumers.
Type of Billing Complaints Bill and Charging Billing Problem/Dispute Rebate/Refund Others Late Payment Charges/ Reconnection Fee Unreasonable Charges No/Late Delivery of Bill Total
% 50 34 5 4 3 3 2
Table: Billing Complaints Received Among the complaints received related to billing and charging are on late calls barring on exceeding the credit limit imposed, high charges of GPRS service, unreasonable charges i.e. late payment fee/reconnection fee, dissatisfaction with the monthly charges for broadband service which did not meet customers satisfaction due to the poor performance and coverage of the service, charges for unsolicited SMS, undelivered/late delivery of bill and double charging/billing error. From our observation, the complaints on poor billing/ dispute arose due to factors such as misleading promotions, either through the advertisement or by the service providers agent, lack of customer understanding on the nature of the service and charges imposed i.e. 3G/GPRS usage. There were also some cases where payments made were not updated nor reflected in the system resulting in service interruption.
Major Consumer Issue in 2009

In addition to the above, the Complaint Bureau handled the following consumer issues: a. Celcoms 100 Days 100 Cars SMS Contest This was an SMS-based contest organised by Celcom promising to give away 100 cars in 100 days. The contest raised many consumer issues such as the presence of elements of gambling in the contest, subscriber credit limit being exceeded, misleading promotion and lack of clarity in the selection of winners. Based on the cumulative complaints, Celcom
Prepaid Registration
Background
In 2005, the Malaysian Government directed every single prepaid mobile service user in the country to be registered. The main reason for this directive was aimed at curbing misuse of prepaid public cellular services and at the same time address security concerns. All users are required to register as long as they are subscribers of a Malaysian prepaid public cellular service.
Monitoring and Enforcement Action by SKMM

SKMM has conducted numerous spot checks to ensure that the service providers and their authorised representatives comply with the proper registration process. In 2008, 30 compounds were issued against service providers for breach of the Prepaid Registration
*Preventive system: mechanism implemented by service providers to automate compliance with Guideline on the Provision of Mobile Content Service.
100
101
initiative will be co-ordinated with the Malaysian banks and ISPs. Consumers are encouraged to be aware and report any incidence so that effective action can be taken against Phishing attempts. To create awareness on the dangers posed by the Phishing sites, SKMM through the Consumer Protection Department (CPD), organised an awareness campaign to alert users on the Phishing sites as well as reminding them not to divulge personal identification information in response to Phishing. The future phases of the SNSC project will include other ISPs, other critical information infrastructures and existing cyber security agencies. The SNSC will conduct periodic cyber exercises with external entities to continuously revise its policies and ensure the readiness of our nations networks in dealing with cyber threats. the increase of more effective enforcement action. This helps ensure the rights of the licencees, investors, consumers and the public are always protected and the confidence in the communications and multimedia industry are maintained at all times.
Guidelines by their authorised representatives. Apart from enforcement action, more than 13 compliance seminars were conducted with the service providers nationwide by SKMMs Enforcement Department to raise awareness amongst their authorised representatives with regards to the registration process.
Investigation
In 2008, 403 cases were investigated by SKMM for various offences under the CMA 1998, three cases under PSA 1991 and two cases under DSA 1997. The cases investigated were as follows: Law Section 233 (1) (A) CMA 1998 No. of Cases 44
Phishing
Phishing cases have increased in 2008 from only 30 cases recorded in the first half of 2008, to 193 cases in the second half. Despite efforts taken by SKMM together with industry stakeholders such as the banks and the ISPs to create awareness among Malaysian online banking consumers, many consumers still fall prey to Phishing attempts.
Enforcement Network Security Centre

Information and Network Security
The Internet constitutes key infrastructure, shifting vital information for consumers, businesses and governments. Almost everything can be done on the Internet with much ease, for instance buying and selling, banking, social networking and many other activities. However, much like the real world, criminal elements do lurk on the Internet. Cyber threats have been on the rise and they come in many forms and disguise, and whats even more alarming, they are getting more organised. The message is clear that concerted and collective efforts at national, regional and international levels are required to deter such criminal acts that are costly to consumers, businesses and the Government. SKMM has set up a cyber security monitoring centre to increase vigilance over the communications networks. SKMMs constant monitoring has contributed towards No. 1. Cases Sending offensive, obscene, indecent, menacing or false short messaging services (SMS) Sending/Posting offensive, obscene, indecent, menacing emails/websites or blogs Making crank calls to 999 emergency number Breach of Licence Condition Use apparatus without apparatus assignment Possession of non-standard equipment Providing network services and application services without licence Failure to contribute to USP Fund Failure to submit Return of Net Revenue (USP) Failure to submit Audited Account Non-compliance to a Direction of the Commission Failure to deal reasonably with consumer complaints Failure to take reasonable measures to check for proper identification Providing courier services without licence
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Section 211/233 (1) (A) CMA 1998 Section 233 (1) (B) CMA 1998 Section 242 CMA 1998 Reg. 20, C&M (Spectrum) Regulation 1998 Section 239 CMA 1998 Section 126 CMA 1998 Reg. 27, C&M (USP) Regulation Reg. 29, C&M (USP) Regulation Reg. 33A, C&M (USP) Regulation Section 74 CMA 1998 Section 188 CMA 1998 Section 6(1) DSA 1997 Section 25 PSA 1991
56 44 55 12 52 12 7 95 12 12 2 2 3 408
45 40 No. of Cases Reported 35 30 25 20 15 10 5 0 0 0 0 2 May Jun Jul Aug Sep Oct Nov 12 16 26 26 27 38 34
42
SKMM Network Security Centre

SKMM, in line with the 10th National Policy Objective to ensure reliable and secure network, has taken on the responsibility to create a proactive platform that will be able to disseminate early warnings to its stakeholders, critical network information infrastructure and the public on possible threats through the SKMM Network Security Centre (SNSC) Project.
Dec
Jan Feb Mac Apr
Months 2008 Figure 1: Total Phishing Cases Reported to SKMM
In 2009, SKMM will undertake an initiative to create further awareness among the online banking consumers by setting up an Anti-Phishing web portal as an online resource for consumers to check if they encounter Phishing attempts. The site would also be another avenue for consumers to report Phishing attempts. This
The SNSC has been established to monitor malicious payloads and cyber attack over Malaysian Internet traffic. Any detection of such threats is followed by advisories to all critical network information infrastructure owners and assistance to mitigate the threats. SKMM has successfully completed the first phase of the SNSC project, involving seven major ISPs. We recognise that ISPs, being the owners of networks in Malaysia, collectively form the Malaysian Internet. They are the heartbeat of the Malaysian Internet as they interconnect the Malaysian public and private networks with the global networks. Hence, ensuring the security and integrity of these networks are essential.
Total Cases Investigated
102
No. 1
103
Offenders
Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees. The cases were as follows: Type of Offences Breach Of Licence Conditions i. Non compliance with Mandatory Standard on Quality Service (4 cases) ii. Non compliance with General Consumer Code (4 cases) iii. Non compliance on Prepaid Registration (35 cases) iv. Broadcasting of programmes against moral and culture values (2 cases) vii. Others (10 cases) Failure to deal reasonably with consumer complaints Failure to submit audited accounts Failure to submit RONR Failure to contribute to USP Fund Non compliance with a Direction of the Commission Use apparatus without Apparatus Assignment No. of Cases 55
Status of Investigations and Court Case

23 offenders were charged in court and 107 were offered compound amounting to RM1,498,600 for committing various offences. The details are as follows: Case in Court
220 188
250 200 150
No. 1.
Cases Charged in Court Licencees i. Breach of Licence Condition ii. Failure to Contribute to USP Fund Other Offenders i. Making Crank Calls to 999 ii. Sending Offensive SMS iii. Unlawful use, possession or supply of non standard equipment iv. Unlicenced Network Facility, Network Services and Application Services
No. of Cases 1 3 2 2 4 11 23
Pending Trial 1 3 1 3 7 15
Convicted 1 2 5 8
Penalty (RM) 4,000 6,500 90,000 100,500
2.
2 3 4 5 6 7
2 12 95 7 12 5 188
100 50 0 Licencees Other Offenders
Total
Total Cases Investigated Offences by Licencees

100 90 80 70 60 50 40 30 20 10 0 Breach of licence condition Failure to submit audited accounts Failure to submit RONR Failure to contribute to USP Fund Use Apparatus Assignment without AA Failure to deal reasonably with consumer complaints Non compliance with a Direction of the Commission 12 7 5 12 2 55 30 20 95
No. 1.
Compounding of Cases Licencees i. Compound Offered (103 Licencees) ii. Compound Paid (79 Licencees) iii. Compound Pending Appeal (24 Licencees) Other Offenders i. Compound Offered (4 Offenders) ii. Compound Paid (3 Offenders) iii. Compound Pending Appeal (1 Offender)
Amount RM 1,484,800 RM 898,000 RM 586,800 RM 13,800 RM 12,000 RM 1,800
Offences by Other Offenders

60 50 40 56 52 44 44
2.
The Compliance Programme

12 7 3 2
10 0
Aside from enforcement action, in 2008, SKMM with the co-operation of the major licencees successfully organised seminars for their employees with the objective of educating their staff on compliance issues, CMA 1998 and the relevant Regulations and to ensure all the compliance issues are adhered to.
In addition, it is hoped that this would promote self-regulation and better compliance by the licencees in accordance to the law. Approximately 700 employees attended the seminar and speakers from SKMM were also invited during the seminar.
Sending - Offensive, Obscene, Indecent, Menacing or False SMS (S.233) Sending/Posting - Offensive, Obscene, Indecent, Menacing Emails/Websites or Blogs (S233 & 211) Providing Network Services and Application Services without licence Use Apparatus without Apparatus Assignment Making Crank Calls to 999 (S.233) Possession of Non Standard Equipment Providing courier services without license Failure to take reasonable measure to check for proper identification
104
The growth of Malaysias arts and cultural heritage is just as vital as the growth of its ICT services. As the custodian of Malaysias communications and multimedia industry, we are entrusted with the national responsibility to grow, nurture and spread local information resources and cultural representation that facilitate our Malaysian identity and global diversity.
05
Upholding National Culture & Identity
106 Content Regulation
106
107
Whilst SKMM receives the bulk of complaints from the public through the Consumer Complaints Bureau, complaints are also forwarded to SKMM by other ministries, regulatory bodies and government agencies. All complaints are processed and evaluated against the CMA 1998, pertinent licence conditions, the Content Code and other regulations. In the case of Internet complaints, they are reviewed according to Section 233 of the CMA 1998, based on the nature of the content, evidence of intent and whether there are local elements in the content. Complaints on Content 2004-2008 Services 2004 8 1 3 3 5 8 6 1 1 6 1 43 2005 8 2 2 1 4 6 1 9 33 2006 2 5 3 2 10 2 1 26 51 2007 8 3 8 5 13 1 3 3 1 2 1 1 1 45 95 2008 4 1 2 6 16 4 2 1 1 1 5 216 259 Growth 2007 vs 2008 (%) -50 -67 -75 20 23 300 -33 -67 -100 -50 -100 -100 380 173 Complaints which do not fall within the ambit of the CMA 1998 are forwarded to the relevant authorities or agencies for further action. SKMM received a total of 259 complaints in 2008, a nearly three-fold increase from 95 complaints received in 2007. Complaints relating to Internet websites surged in 2008, representing 83% of total complaints for the year compared to 47% in 2007. One of the reasons for the increase was increased awareness initiatives undertaken by the Commission to publicise the complaints procedure.
Content Regulation
Introduction
One of SKMMs primary roles is to ensure that content application service providers support the Governments national policy objectives for the communications and multimedia sector, as set out in the Communications and Multimedia Act (CMA) 1998. In particular, to portray the diverse and rich heritage of Malaysian culture, identity and social values. In this aspect, SKMM oversees the regulatory framework for the convergent telecommunications, broadcasting industries and online activities, ensuring that the services and content provided are suitable, of choice quality and fulfil national aspirations as well as the needs of all segments of the Malaysian community.
content in advertisements, online content and mobile content services. Such responses may include further monitoring, evaluation, taking enforcement action and providing reports on areas of public interest regarding standards and effectiveness of content policies, codes and standards. As certain aspects of the networked content industry fall under the purview of other ministries and government agencies, the Commissions role includes collaborating and co-ordinating with the relevant ministries and government agencies towards clarity of policies and practices for effective implementation and enforcement of the regulatory framework. Some of the key ministries and government agencies are the Ministry of Energy, Water and Communications (KTAK), Ministry of Information (MoI), Ministry of Home Affairs (MoHA), Ministry of Health (MoH), the Film Censorship Board, the Content Forum and the National Film Development Corporation Malaysia (FINAS). SKMM also participates in inter-agency committees relating to content monitoring and regulation including the Jawatankuasa Penyelarasan Pemantauan Siaran TV dan Radio Awam dan Swasta (JKPPSTRAS) which is led by KTAK. SKMM is also an observer in the Medicine Advertisement Board, which is led by the Ministry of Health. Enforcement action is also taken for breaches of any licence condition as well as for breaches of Sections 211 and 233 under the CMA 1998 for prohibited content in the networked environment. b. Complaints and Complaint Resolution The increasing number of complaints has led to a review of the Standard Operating Procedures (SOP)*.
Television TV3 NTV7 Ch9 8TV General television ASTRO General complaints (CASPs) Radio AMP Radio Fly FM Hot FM Red 104.9 FM Suria FM THR FM 988 FM General radio Others Telcos Internet websites TOTAL Source: SKMM
Regulatory Approach
The Commission takes a four-pronged approach towards content regulation, namely, content monitoring, complaints management, new media initiatives and strengthening the self-regulatory mechanism. a. Content Monitoring and Compliance Content monitoring is an ongoing activity of the Commission which ensures compliance with licence conditions as well as content standards, the Content Code by Content Applications Service Providers (CASP) and also relevant Application Service Providers (ASP). Services are monitored by the Content Monitoring Centre. Services monitored include traditional broadcast services such as radio and television as well as newer services such as online publishing and information services. In addition to monitoring, the Commission responds to complaints regarding
*Changes have been made to the SOP to ensure that processing and evaluation of complaints are more efficient and timely by providing greater clarity on applicable laws
108
250 No. of Complaints 200 150 100 50 0
109
216 Most of the complaints received were for obscene content (59%) which involved obscene websites on the Internet. There was also an increase in the number of websites that contained offensive content (22%) that violated the sensitivity of the public. In this regard, technical category refers to complaints which were not within SKMMs jurisdiction or concerns the CMA 1998. False/Misleading complaints included false social networking profiles and impersonation online. c. New Media Initiatives New media content is a term that refers broadly to content that can be accessed through channels other than the traditional mediums of television and radio. The falling costs of accessing the Internet, improved affordability together with an increase in broadband penetration and widespread availability of devices have collectively accelerated the development and consumption of new media content. New media allows users to participate in the generation and dissemination of content through the various channels. Whilst the Government is keen to promote a higher penetration rate of broadband as part of continued national development, there is widespread concern regarding the social impact of the online environment and the mobile lifestyles. Of particular concern is the quality and type of content that is being accessed and the need to protect users, particularly the young from offensive or prohibited content. Research collaboration on New Media Content between SKMM and Institutions of Higher Learning is an initiative towards understanding the new media. It is envisaged that the outcome of the research outputs will provide the Commission with valuable information and insight for the formulation of strategies and policies for effective development and regulation of new media content. The Research Collaboration programme was launched successfully in April 2008 and has embarked on its maiden projects with four private and public universities. The programme is open to all private and public local universities and research grants will be made available annually. The development of new media services and online media have prompted a shift in media regulation. The proliferation of social media online has provided amateurs and end-users with the facilities and tools to create their own content, so much so that social media with user-generated content is increasing its share of Internet traffic, globally. Traditional regulation and its legal framework especially in its practical application, is no longer able to adequately take on the tasks of ensuring consumer protection and quality of content. In recognition of this, SKMM realises that the public must be involved in efforts to regulate content and content applications services effectively. Self-regulation has become a vital component in its regulatory approach, co-existing and complementary to statutory regulation.
Number of Complaints Received by Category in 2008
16
ASTRO
7
FTA TV
5
Others Internet
Radio General TV Media
Source: SKMM Number of Complaints Received by Month in 2008

45 40 No. of Complaints 35 30 25 20 15 10 5 0 Jan Feb Mac Apr May Jun Jul Months Aug Sep Oct Nov Dec 9 10 13 12 16 14 17 29 42 36 30 31
Source: SKMM Number of Complaints by Type in 2008

False/Misleading 27 (13%) Technical 16 (6%) Obscene 152 (59%)
Offensive 58 (22%)
Source: SKMM
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By liberating the power of information, we are empowered to reduce the disparities between and within our society in the use of digital technology. The key lies within having a balanced and choice spread of ICT facilities. It is our social responsibility to ensure that everyone, be they rich or poor, young or old, is empowered with basic telephony and Internet services in any part of the country.
06
Channeling Equal Access to ICT Services
112 112 USP Fund USP Projects in Bridging Digital Divide
112
113
Throughout 2008, SKMM set its focus into developing broadband community access centres where promotion, awareness, marketing, and ICT enrichment training on information and communications technologies (ICT) took place in support of social service delivery to deserving communities. SKMM realised that once a community is fairly conversant with the usage of broadband facilities and services, the capacity needs at such centres and the need for individual access will increase, thereby contributing significantly to the national broadband penetration in line with the objective of the Cabinet Committee on Broadband (CCB) under the auspice of YAB Deputy Prime Minister of Malaysia. SKMM will appoint a supervisor for each library on a contract basis. They will be based at the library and will be responsible for managing and maintaining its equipment, providing training and promoting the facilities to the community. The selection of libraries for this project was based on information provided by the National Library of Malaysia and the states Library Organisations. To avoid duplication, SKMM worked closely with the Ministry of Energy, Water and Communications (KTAK) as similar projects have been carried out by KTAK under its government-funded USP programme. The CBC will be managed by two supervisors on a contract basis. Besides managing the CBC, they would also be responsible for conducting various IT-related activities such as training, seminars and workshops for the community. For sustainability, the CBCs operations would adopt the entrepreneurship concept wherein supervisors are encouraged to earn additional income by conducting any IT-related side business in the CBC. The successful implementation of the CBC relies on the co-operation of state governments in terms of providing the premises. The CBC sites mainly comprise common public locations where there is a good concentration of people, active community and is easily accessible, preferably within a towns vicinity or business area. For capacity and community enrichment purposes, around 10 to 20 networked computers will be installed at the premises, with Internet access.
USP BROADBAND COMMUNITY PROJECTS Community Broadband Libraries (CBL)

has established, controlled and operated the USP Fund. The Funds sole objective is to implement network facilities, network services and applications services in the underserved areas and communities. The USP Fund is presently placed in Fixed Deposits at licenced financial institutions. Related projects payments and claims (CAPEX/OPEX) are only applicable to Designated USP Services Providers. The USP Fund, amounting to 6% of licencees weighted net revenue annually, comprises the following: a) Contributions from Network Facilities Provider Individual/Class (NFP); b) Contributions from Network Services Provider Individual/Class (NSP); and c) Contributions from Application Services Provider Class (ASP). The administrative processes of managing and administering the USP Fund are specified under the regulations as well as the SOPP, inter alia: a) R.27: Collection of Contribution from Licencees; and b) R.12, R.20, R.20A: Disbursement of CAPEX and OPEX in the form of Advance Claims and Annual/ Quarterly Claims processing. To facilitate communications access for selected communities, SKMM decided to broaden the rollout of Broadband Internet to all libraries in the rural areas. Internet access in libraries stands to benefit the surrounding community besides facilitating the birth of a society knowledgeable in the field of communications, particularly Information Technology. Again, this objective is very much in line with plans and targets identified under the National Broadband Plan and the Strategic Framework MyICMS 886. The library will be equipped with the latest IT hardware and high-speed Internet connectivity to enable rural communities to gain exposure to the latest technology through Internet communications. In addition, other IT-related activities such as training and promotional activities will be conducted at the libraries to encourage locals to make full use of the facilities and thereby improve their IT proficiency, with the ultimate goal of helping to improve their economic and social status.
USP Fund
The Universal Service Provision (USP) Fund was established under the provision of Section 204 of the CMA 1998. The USP Regulation stipulates that contributions from licencees shall be based on three factors: 1) The list of designated services; 2) Weight factors; and 3) Six per cent of weighted net revenue. As per Regulation 27 of the USP Regulation 2002 (Amendment 2003), all licencees (except for content application service providers) whose weighted net revenue derived from the designated services exceeds RM2 million in a calendar year (minimum revenue threshold) shall contribute 6% of its weighted net revenue to the USP Fund. Pursuant to Part VIII, Section 204 of the CMA 1998, SKMM
Community Broadband Library in Desa Ijok, Selangor
USP Projects in Bridging Digital Divide

USP Projects in Bridging the Digital Divide (BDD)
SKMM prioritised the provision of collective universal service access (for basic telephony and Internet) over individual access. This is to ensure that the targeted uneconomical areas are provided with communications services through means of widespread community access to such services.
Throughout 2008, SKMM approved 61 new CBL projects nationwide at a cost of RM29.2 million and is listed in Table 1 on page 114.
Community Broadband Centre (CBC)

SKMM had decided to establish the CommunityBroadband Centre (CBC) as part of its broadband rollout plan for the year 2006. Similar to the broadband library initiative, the CBC will be equipped with the latest IT hardware and broadband connectivity for faster access to the Internet. However, the provision of facilities will be at greater capacity as the target users of CBC are bigger.
Community Broadband Centre in Sg Pinggan Pontian, Johor
Throughout 2008, SKMM approved 73 new CBC projects nationwide at a cost of RM92.5 million and is listed in Table 2 on page 116.
114
NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
115
LIBRARY PD Kg Seri Pengkalan, 78000 Alor Gajah PD Kg Kuala Sungga, Mukim Tebong, 76460 Tebong NO. 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 SARAWAK Baling Betong Bandar Baharu KEDAH Padang Terap Pendang Sik Marang TERENGGANU Pekan Besut Dungun PAHANG Maran STATE DISTRICT LIBRARY PD Bukit Kening, 28100 Chenor PD Pekan Awah, 28330 Maran PD Kg Pantai Chenor, 28100 Chenor PD Kg Senggora, d/a Balai Seni JKKK Kg Senggora, 26500 Maran PD Kg Dusun, 26000 Pekan PD Kg Keruak, Hulu Jertih, 22010 Besut PD Kg Bukit Tanah, 22200 Besut PD Kg Balai Besar, Batu 48, 23100 Rantau Panjang, Dungun PD Felda Kerteh 3, Ketengah Jaya, 23300 Dungun PD Kg Tasik, Bukit Payung, 21400 Marang PD Kg Alur Limbat, 21400 Marang PD Kg Tok Amat, Merchang, 21610 Marang PD Felda Teloi Timur, 09300 Kuala Ketil PD Kg Padang Durian, d/a Pejabat ADUN Sungai Tiang, Kg Padang Durian, Sungai Tiang, 06760 Pendang PD Kg Dato Syed Ahmad, Padang Peliang, 06750 Pendang PD Kg Charok Kudung, Mukim Guar Kepayang, 06700 Pendang PD Kg Titi Akar, Watt Kg Titi Akar, 06750 Pendang PD Kg Paya Mengkuang, 08330 Gurun PD Bukit Raya, d/a Pejabat Penghulu Mukim Bukit Raya, 06760 Pendang PD Masjid Kg Masjid Lama, Naka, 06350 Padang Terap PD Masjid Kg Datuk, Mukim Tekai Kiri, Naka, 06350 Padang Terap PD Masjid Kg Perik, Mukim Kurong Hitam, 06300 Kuala Nerang PD Masjid Kg Padang Niyor, PD Masjid Kg Padang Niyor PD Kg Permatang Pasir, 34950 Bandar Baharu PD Kg Baru Bagan Samak, 34950 Bandar Baharu PD Taman Cempaka, 09810 Selama, Serdang PD Kg Sungai Batu, 09810 Serdang PD Kg Pokok Setol, Masjid Siong, Kg Pokok Setol, Mukim Siong, 09100 Baling PD Kg Pusa Tengah, 93950 Betong
Table 1: Community Broadband Libraries (CBL) Approved in 2008 STATE DISTRICT
MELAKA
Alor Gajah
PD Kg Bukit Nangga, 78000 Alor Gajah PD Kg Paya Datuk, Taman Paya Datok, 78000 Alor Gajah PD Kg Lubok Redan, 78300 Masjid Tanah PD Mukim Api-Api d/a Balai Raya Kawasan 1, Mukim Api-Api, 82000 Pontian
JOHOR
Pontian Kota Tinggi
PD Kg Puteri Menangis, Lot 1163, Mukim Sg Pinggar, Bebut, 82100 Pontian PD Parit Bilal Rembah, 82000 Pontian PD Kampung Ulu Tiram, Mukim Plentong, 81800 Ulu Tiram, Kota Tinggi PD Lui Selatan 1, d/a Felda Lui Selatan 1, 72120 Jempol PD Felda Palong 5, 73430 Gemas PD Felda Palong 12, 73430 Gemas PD Rumah Rakyat Kg Serting Tengah, 72200 Batu Kikir, Bahau PD Kg Serting Ulu, 72200 Batu Kikir, Bahau PD Taman Tunku Puan Chik, 72100 Bahau, Jempol PD Kg Bukit Kerdas, 72200 Batu Kikir, Bahau PD Kg Sri Rompin, 73500 Jempol
N.SEMBILAN
Jempol
SELANGOR
Kuala Selangor Jeli
PD Bandar Puncak Alam, PT 1562 Fasa 1D, Bandar Puncak Alam, 43200 Jeram, Kuala Selangor PD Kg Gemang, Air Lanas, 17700 Jeli PD Kg Sungai Satan, Air Lanas, 17700, Jeli PD Kg Batu Melintang, 17520 Jeli PD Kg Pangkal Petai Dalam, Kemuning, 18500 Machang PD Kg Pangkal Gong, PT 983 Mukim Gading Galoh, Pulai Chondong, 18500 Machang PD Kg Wakaf Zin, d/a Kompleks Penggawa Kg Wakaf Zin, Tawang, 16020 Bachok PD Kg Telong, d/a Kompleks Penggawa Telong, 16310 Bachok PD Kg Permatang Piah, 16300 Mahligai, Bachok PD Kg Chat Bekelam, 16300 Bachok PD Kg Ketil, Pengkalan Kubor, Tumpat PD Kg Jerek, 18300 Gua Musang PD Kg Sungai Sam, 18000 Dabong, Kuala Krai PD Kg Kuala Geris, 18000 Dabong, Kuala Krai PD RPT Chuchuh Puteri, 18000 Kuala Krai
Machang
KELANTAN
Bachok
Tumpat Gua Musang Kuala Krai
116
NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
117
MUKIM Brisu Melaka Pindah Melekek Pegoh Rembia Sungei Baru Ilir Taboh Naning Tanjong Rimau Sungei Baru Ulu Tebong Johor Lama Kota Tinggi Penggerang Sedili Kechil Tanjong Surat Ulu Sungai Johor Api-Api Ayer Baloi Jeram Batu Rimba Terjun Jelai Rompin Serting Hilir Serting Ulu Jabi Kampong Raja Kuala Besut Pelagat Jerangau Kuala Paka Rasau Sura Alur Limbat Bukit Payong Mercang Pulau Kerengga 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 SABAH Nabawan Pitas Kinabatangan SARAWAK PAHANG Maran Pekan Rompin Serian Saratok Marudi Matu Mukah Tatau Julau Asajaya Bintulu Sri Aman Kapit Betong Samarahan Dalat Limbang Sarikei Song Lipis Bentong Jerantut Pelangai Sabai Pedah Pulau Tawar Kuala Lipis Penjom Ulu Jelai Chenor Luit Pahang Tua Penyor Keratong Rompin Tebedu Budu Pekan Marudi Igan Balingian Pekan Tatau Pekan Pakan Pekan Julau Pekan Asajaya Kg Penan Lingga Pekan Kapit Pekan Betong Pekan Samarahan Pekan Dalat Pekan Limbang Pekan Sarikei Song Pekan Kinabatangan Sukau Bukit Garam Kg Paris 1 Pegalungan Mempakat Laut
Table 2: Community Broadband Centres (CBC) Established in 2008

STATE DISTRICT
MELAKA
Alor Gajah
Kota Tinggi JOHOR
Pontian
N.SEMBILAN
Jempol
Besut
TERENGGANU
Dungun
Marang
118
ICT is a crucial tool that drives competitiveness and productivity. Incorporating a certain level of professionalism and implementing self-regulation within the ICT industry are sure ways to meet the demands of industry effectiveness, raise expectations and boost consumer confidence.
07
Enhancing ICT Ethics and Excellence
120 121 123 125 Consumer Forums Activities Content Forums Activities Report on Technical Standards Forum Report on Access Forum
120
121
The GCCP contains general provisions on: 1) Reasonable meeting of consumer requirements; 2) The handling of consumer complaints and disputes including an inexpensive arbitration process, and procedures for compensation of customers in the case of the breach of the Code; and 3) The protection of consumer information. Currently CfM comprises 36 members from various industries such as telecommunications service providers and broadcasting stations (The Supply Side), and consumer associations and public interest groups (The Demand Side). Membership to the CfM is voluntary. CfM sets up guidelines for self-regulation within the industry while providing a benchmark for service providers on a range of issue including advertising, billing, and privacy of consumer information. The current office bearers of CfM are: Chairperson - Encik Ahmad bin Ismail Deputy Chairperson - Encik Noor Nirwandy bin Mat Nordin Secretary - Puan Nor Esah Mohd Said Treasurer - Encik Muhamad Adnan Abdullah CfMs activities in 2008 covered the following areas: 1) Education and awareness a. CfM undertook 23 educational and promotional events. b. Creating awareness regarding: CfMs existence and its functions; Rights of users as consumers; Channels for complaints, disputes and grievances-handling; The national policies in the communication and multimedia industry. 2) Complaints handling a. For 2008, 141 complaints were received, 125 of which were resolved. The remaining 16 complaints are awaiting resolution and will be escalated to SKMM if not resolved within the stipulated time. b. CfM is in the process of setting up a web-based complaint handling process and for this purpose CfM has finalised and short-listed the solution providers for its Complaint Handling Management. 3) Council meetings a. A total of eight council meetings were held in 2008. This complies with Article 17 of the Constitution of CfM that requires it to meet at least once every quarter. Council Meetings were generally well attended. 4) Membership drive a. As at 31 December 2008, CfMs membership stood at 36. b. CfM collected a total of RM61,700 as subscription fee from the members. 5) Codes drafting and compliance activities a. The code drafting committee worked on developing the fixed line sub-codes while the Public Cellular Services draft sub-codes have been circulated to all public cellular service providers for comments. For the year 2008, SKMM allocated RM435,000 to CfM to cover expenses related to its activities. CfM is currently reviewing its activities in view of strengthening the self-regulatory process particularly compliance monitoring, alternative dispute resolution process and internalisation of the code amongst licencees. e. Participate in seminars and workshops at both national and international levels in its efforts to promote the concept of self-regulation to various stakeholders. Currently, CMCF has 44 members, comprising 42 ordinary members and two associate members. CMCFs management is led by its chairman, YBhg Dato Borhanuddin Osman and supported by the other members of the executive committee comprising vice-chairman Dato Amrin Hj. Awaluddin, honorary secretary Tuan Syed Agil bin Sheikh Alsagoff, and honorary treasurer Dr. Fadhlullah Suhaimi Abdul Malek. Besides the executive committee, council members head various committees, representating the six categories of members. CMCF continues to receive financial support from SKMM to supplement its income, which is also derived from subscription fees. For 2008, CMCF received RM2,200,400 as grant from SKMM for its operations and activities. Together with the Commission, CMCF continues to undertake activities to strengthen the self-regulatory capacity of the industry. For the year in review, CMCFs main activities were the Complaints Board, code drafting, awareness building and capacity building. a. Complaints Bureau and Content Advisory Centre The number of complaints and advisory matters combined received by the Content Forums Complaints Bureau in 2008 totaled 44 compared to 31 in the previous year. In terms of cases closed, a total of 38 cases were resolved in 2008. This represents an achievement of 86% of the total number of cases resolved for the year.
Complaints Received
45 40 35
Consumer Forums Activities

The CfM was established in February 2001 and designated as an Industry Forum in line with the requirements of the Communications and Multimedia Act (CMA) 1998. It facilitates the industrys self-regulation with participation and representation from consumer associations, service providers and other interested parties. The forum acts as a one-stop centre for complaints on breaches of the code and will refer those which it cannot process to the relevant bodies concerned. The code outlines the rights of the consumer and offers a less expensive process than the court for resolving consumer complaints. The objectives of CfM are as follows: 1) Promote the national policys objectives as stated in the CMA 1998. 2) Draft, develop and prepare Codes that protect the rights of Consumers pursuant to the provisions of the CMA 1998 and from time to time to amend, develop, modify, review and update Codes. 3) Engage in and undertake research on matters within the jurisdiction of the forum and to collect, prepare and distribute statistics as may be considered desirable or beneficial to all or any of the forums objectives and purposes. 4) Provide an avenue and channel for complaints, disputes and grievances. 5) Recommend inexpensive and practical alternative dispute resolution procedures, for example, mediation. 6) Recommend procedures for compensation and/or any other mode of action to the customer in the case of a breach of the Code. 7) Invite, collect and collate public opinion and views on consumer matters, promote and create public and industry awareness of the Codes and their compliances; and provide avenues for dissemination of information to the public and education regarding consumer rights, regulations and technologies for the consumer. 8) Administer sanctions on breaches of the Codes by members. 9) Monitor service delivery of the communications and multimedia industry in respect of consumer interests and compliance with the Code. 10) Promote and encourage high standards of service, conduct and performance throughout the communications and multimedia industry and to develop consumer confidence. 11) Regularly update the Commission on the progress of the forum. The General Consumer Code of Practice (GCCP), launched in November 2003, is the first voluntary code under the CMA 1998. Compliance with the GCCP is mandatory for all licencees under the CMA 1998 through standard licence conditions.
Content Forums Activities

Background
The Communications and Multimedia Content Forum of Malaysia (CMCF) has been designated as a content forum under Section 212 of the CMA 1998. A registered society whose membership comprises all relevant parties, including the supply and demand side of the communications and multimedia industry, it functions as an industry body responsible for self-regulation within the networked content industry. For this purpose, a Content Code was registered by SKMM on 1 September 2004 providing guidelines on suitability of content provided over the networks. This includes broadcasting content, Internet content, mobile content and advertising content. The Code also provides guidelines on the complaints resolution process. As a self-regulatory body, CMCF is extensively involved in the following activities: a. Resolution of consumer complaints through the Complaints Bureau; b. Provide advice and guidance to the industry on the interpretation of the Content Code through its Content Advisory Centre; c. Provide industry inputs on policies and regulations relating to content to SKMM, the Ministry of Energy, Water and Communications (now Ministry of Information, Communications and Culture or KPKK) and other relevant ministries; d. Provide training on the Content Code to its members and other interested parties; and
Advisory Matters Total Number of Cases Cases Resolved Decision Pending

28 29
44 37
Number of Cases
30 25 20 15 10 5 0 12 16
18 15 10 6
2007
2008
Graph 1: Complaints Bureau Cases 2007/2008
122
123
Breakdown of Cases Received in 2008 Cases Pending 14% Others 14% Industry 18% content guidelines. CMCF hopes to complete the review exercise and obtain approval for the proposed amendments in 2009. c. Public Relations and Awareness Activities CMCF continued to promote, educate/advocate the proper use of networked media and strengthen self-regulation through a variety of initiatives and activities as shown in the table below: No. Type of Activities 1. 2. 3. 4. 5. Roadshow/Exhibition Seminar/Workshop/Conference Press Release Media Interview Other Events Frequency 10 29 1 2 14 Office of Communications (OFCOM), PayPhonePlus and the Advertising Standards Authority. Discussions were also held with BBC Trust and subscription broadcaster BSkyB. 4) 5) 6) 7) Khalidah Mustafa SIRIM Imran Zulkifli TIME dotCom Kevin Koo Jenn Mang DiGi Shahrul Imran Sultan MBNS (Astro)
Summary of Cases for 2008
Reference Panels
Report on Technical Standards Forum

Malaysian Technical Standards Forum Berhad
The Malaysian Technical Standards Forum Bhd (MTSFB) (655368-P) was incorporated on 8 June 2004 and subsequently is designated and registered by SKMM under the CMA 1998 (Act 588), Part V, Chapter 9, Voluntary Industry Codes, Section 94 and Part VII, Chapter 3, Technical Standards, Section 184 on 27 October 2004. The MTSFB AGM2008 was held on 27 June 2008 at Menara Maxis, KLCC and listed below are the Board of Directors for 2008/2009 session:
Cases Resolved 86% Breakdown of Complaints 2008 Advertising 28% Mobile Content 28%
Public 68% Breakdown of Content Advisory Matters 2008 Advertising 32% Mobile Content 7% Broadcasting 7% Others 7% Services 7%
Table 1: Activities on Public Relations Awareness Undertaken by CMCF d. Capacity Building As part of its capacity building initiatives, CMCF continued to provide training to interested parties and relevant stakeholders. In 2008, three training events were conducted on the Content Code. CMCF also participated in a study trip to the United Kingdom in June 2008 for its Council Members together with SKMM. The main purpose of the visit was to establish an inter-jurisdictional information sharing relationship and enhance jurisdictional study of other regulators efforts to manage, understand and develop the industry in their respective jurisdictions. This included the processes and organisational functions of the regulators in the UK with emphasis on complaint handling mechanisms. During the visit, meetings were held with several regulatory authorities for the industry, namely,
1) N.A. Ratnam MBNS (Astro) Chairman 2) Amirul Ahmad (MTSFB) Vice Chairman 3) YBhg. Dato Ismail bin Osman U Mobile 4) Abdul Ghani Zainal Abidin SIRIM 5) Ravindran Ramesan Maxis 6) Abdul Majid Abdullah QucomHAPS 7) Khoo Teng Lock Motorola 8) Mohd Yusairi Abu Hassan Telekom Malaysia 9) Nor Izhar Mohd Zain Asiaspace 10) Hamzah Burok U Mobile 11) Bruce de Netto Maxis 12) Hj. Mohd Jaafar Mohamad Abu Bakar Telekom Malaysia (TM R&D) 13) Nick Krall NTT MSC 14) Rosilawati Ayub Telekom Malaysia 15) Ameer Suresan DiGi 16) Suhaimi Abdul Rahman Velchip 17) Roslan Boni MBNS (Astro /AMP)
Board of Directors 2008/2009 Session

Chairman 1) YBhg Dato Ismail bin Osman U Mobile Directors 1) Poh Kee Seng Maxis 2) Azizi A. Hadi Telekom Malaysia 3) Hj. Abdul Razak Salim SIRIM 4) Tengku Azelan TIME dotCom 5) Nathan Jay Paul DiGi 6) Hj. Rohaizad Mohamed MBNS (Astro) Alternate Directors 1) Hamzah Burok U Mobile 2) Hj. Ramlan bin Othman Maxis 3) Mohd Rais Azhar Telekom Malaysia
Membership
Currently, MTSFB has 35 registered members divided into two categories as below: 1) Ordinary Members 16 registered corporate members: Maxis, Telekom Malaysia, DiGi, MBNS(Astro), SIRIM, Time dotCom, UMobile, Realm Energy, Masers Digital, DIS Technology, Smart Digital, NTT MSC, Orbitage, QucomHaps, MIMOS & ZTE. 2) Associate Members 19 registered corporate members: Nokia Siemens, Ericsson, Alcatel-Lucent, Rohde & Schwarz, Celcom, TMNet, UPM, UTM, Motorola, Electroscon, UiTM, USIM, HAPS Network, Asiaspace, NAV6, Packet One, BT Multimedia, Panasonic R&D & ADAcellworks.
Broadcasting 14% Source: CMCF
Internet 30%
Internet 20%
Academic 20%
b. Code Drafting and Review In 2008, CMCF undertook to draft a Music Content Sub-Code to regulate the broadcast of music and songs on networks through industry self-regulation. The Sub-Code, which is expected
to be registered in 2009, underwent public consultation from 14 April to 13 May 2008. CMCF is continuously reviewing the Content Code to ensure that it remains current and
relevant, particularly to developments in the communications and multimedia industry and socio-economic environment. Working groups were established to look into the different aspects of the Code, such as advertising and online
124
125
4) MTSFB 008:2005 Technical Standards & Infrastructure Requirements (Part 1) for Fixed Network Infrastructure on 30 June 2008; and 5) MTSFB 006:2008 Technical Standards & Infrastructure Requirements (Part 2) for Broadcast Network Infrastructure on 25 July 2008. SKMM successfully registered and published the three Technical Standards/ Specifications as industry codes namely: 1) Technical Specifications for Free-to-air Digital Terrestrial Television Receiver (Set Top Box) which was registered on 13 August 2008; 2) Technical Standards and Infrastructure Requirements: Fixed Network Infrastructure Final (Part 1) which was registered on 13 August 2008; and 3) Technical Standards and Infrastructure Requirements: Broadcast Network Infrastructure Final (Part 2) which was registered on 8 October 2008. The trial commenced in mid January 2008 and concluded by mid March 2008. The technical trial involved the technology based on DAB Eureka 147 platform using DAB audio codec and T-DMB technology as both systems have common equipment. The set-up involved one DAB transmitter (1KWatt) placed on top of Menara Kuala Lumpur and transmited southwards almost 30km with another gap-filler (1Watt) installation at SKMMs building in Cyberjaya. The head-end equipment which included encoders and multiplexer was placed in IBC Angkasapuri. Besides proving the maturity of the technology, the trial also increased interest amongst the industry on the mobile TV technology. The trial triggered many follow-up trials by industry players. MTSFB also announced the success of this trial through press releases which were captured in local newspapers, namely the New Strait Times Tech&U on 31 March 2008 and Berita Harian on 7 April 2008 as well as on Radio24s live interview on 25 April 2008. Standards and Codes published in the New Strait Times on 1 November 2008.
MTSFB has played a key role in developing technical standards for the industry from its Working Group/Sub-Working Group clusters which includes:
Internal Working Group/Sub-Working Group

These are working groups/sub-working groups working to develop the respective standards according to the WG jurisdictions: 1) DIGITAL TERRESTRIAL TV BROADCASTING MOBILE TV WORKING GROUP (DTTB-MTV WG) 2) NEXT GENERATION NETWORK IP MULTIMEDIA SUBSYSTEM WORKING GROUP (NGN-IMS WG) 3) MULTIMEDIA TERMINAL SET-TOP-BOX WORKING GROUP (MMT-STB WG ) 4) HIGH ALTITUTE PLATFORMS WORKING GROUP (HAPS WG) 5) MULTIMEDIA NETWORK INFRASTRUCTURE WORKING GROUP (MNI WG) 6) FIXED NETWORK INFRASTRUCTURE SUB-WORKING GROUP (FNI SWG) 7) RADIOCOMMUNICATIONS NETWORK INFRASTRUCTURE (EXTERNAL) SUBWORKING GROUP [RNI (Ex) SWG] 8) RADIOCOMMUNICATIONS NETWORK INFRASTRUCTURE (INTERNAL) SUBWORKING GROUP [RNI (In) SWG] 9) OCCUPATIONAL SAFETY & HEALTH WORK PRACTICES SUB-WORKING GROUP (OSHWP SWG) 10) WIRELESS BROADBAND WORKING GROUP (WIB WG) 11) INTERNET PROTOCOL VERSION 6 (IPv6 WG) 12) IMT2000 SYSTEMS & BEYOND WORKING GROUP (IMT2000 WG) 13) WIRELESS INDUSTRY EMISSION WORKING GROUP (WIE WG) 14) POWER LINE COMMUNICATIONS WORKING GROUP (PLC WG) External Working Group/Committees participation 1) SIRIM ISC-G; TC 12 & TC on EMC 2) SIRIM ISG-W; DOSHs WG 3) SKMM DSOG 4) KTAKs APT/WTSA Preparation Committee 5) MAMPUs IPv6 Implementation Committee Deliverables For the year 2008, MTSFB through its respective work groups, submitted five documents to SKMM which included: 1) MTSFB 001:2008 Technical Standards for Free-to-air Digital Terrestrial Receiver (Set-Top-Box) on 20 June 2008; 2) MTSFB 002:2008 Guideline on Adoption of IP Multimedia Subsystem (IMS) on 20 June 2008; 3) MTSFB 003:2008 Mobile Broadcast TV Guidelines on 30 June 2008;
International Participation
In 2008, MTSFB participated in two international events: 1) The 14th APT Standardisation Programme Forum (ASTAP-14) and the 2nd APT Preparatory Meeting for WTSA-2008 in Kobe, Japan from 9 to 14 June 2008 attended by Abdullah Shahadan (Astro) on behalf of MTSFB. Other Malaysian delegations who attended were: i. KTAK: Anna Amalina Imam Baweh and Nubailah Arshad ii. SKMM: Ahmad Razif Ramli iii. Telekom Malaysia: Badariah Zainal 2) The APT Workshop on Standardisation in Chiang Rai, Thailand from 29 to 31 July 2008 attended by Norazlina binti Dato Ghazali on behalf of MTSFB. Other Malaysian delegations included: i. KTAK: Amirah binti Azhari ii. SKMM: Abdul Karim Abdul Razak iii. Packet-1: Jaizan Zuki
MTSFB Publication of TSIR, Part 1 and Part 2
Projects Further activities of the forum included conducting industry trials and seminars. A mobile TV trial was successfully conducted by the forum utilising the widely recognised T-DMB standards.
Report on Access Forum

Malaysian Access Forum Berhad
As at 31 December 2008, the Malaysian Access Forum Berhad (MAFB) has 11 members. For 2008, the MAFB developed the Guidelines on 2G-2G Domestic Inter-Operator Roaming Service. Further, it also carried out a public consultation on the access code from 25 September 2008 for 30 days. At the close of their public consultation, the MAFB received four responses from the members, i.e. Telekom Malaysia Berhad, U Mobile Sdn Bhd, Celcom (Malaysia) Berhad and TT dotCom Sdn Bhd. To date, the MAFB has yet to submit the access code to SKMM for registration under Sections 154 and 95 of the CMA 1998.
New Straits Times in Tech&U section: Interview on the MTSFBs Mobile TV Trial
The T-DMB Mobile TV Coverage for Trial
Seminars were also conducted for awareness and transfer of knowledge to industry players where foreign and local speakers were invited. MTSFB also participated in the MyBroadband Experiencing Convergence and Conference 2008 in KLCC with an advertorial write-up column under the title Gatekeeper of Technical
126 Although ICT has overwhelmingly infringed into our lives, at work and at home, Malaysias postal services still continue to play an integral role, serving the community through various services it strives to deliver. There is this universal service obligation we need to exercise to promote and encourage the interest of users as well as expansion of postal services towards economic development.
08
Enhancing Postal Services Standards
128 Postal Services
128
Enhancing Postal Services Standards
129
The national delivery service is divided into two areas, namely Zone A and Zone B. Zone A covers all the major towns and cities in Peninsular Malaysia and Kuching and Kota Kinabalu in Sarawak and Sabah, respectively. Zone B covers small towns and villages throughout Malaysia. Zone A has a D+2 (within two days of posting date) delivery standard while Zone B has a D+4 (within four days of posting date) delivery standard. Based on Pos Malaysia Berhads record, 84.5% of 6.4 million addresses fall under Zone A with 89.6% of the mail volume falls under the D+2 category. All local delivery services have D+1 standard. Service performance is measured based on the following criteria: Year Speed Objective Reliability Objective 2008 88.0% 99.0% 2009 88.0% 99.2% 2010 89.0% 99.3% % Compliance Reliability refers to the percentage of the total test letters delivered within the delivery standard of D+7, i.e., in 2008, 99% of all letters must be delivered within seven days of posting.
Postal Services
The Functions of the Commission
The Commission has a statutory regulatory and developmental role with respect to the postal and courier services industry as prescribed by the Postal Services Act 1991. The regulatory functions include the determination of service performance standards, promoting competition and protecting the interest of users with the development role of promoting the expansion of postal services in line with the economic development of the country.
Projek Usahawan Pos Mini Luar Bandar (PUPMLB)

The Government understands the need for post offices in rural areas and has allocated RM1 million under the RMK-9 budget for the PUPMLB. A total of 105 suitable locations have been approved, of which 64 new mini post offices were successfully opened nationwide.
Post Office and Mail Delivery Network

The Post Office and Mail Delivery network is an essential infrastructure for economic growth. At the end of 2008, there were 671 post offices, 349 mini post offices and 257 postal agents. The countrys post office network is explained in Table 2. Network Reach Post Office Pos Mini Postal Agents Stamp Vendors Mobile Post Offices PosLaju Centres Posting Boxes PO Boxes Mail Processing Centres Delivery Depots Table 2: Malaysias Post Office Network
3 58,573
their licence. The new licencees are: 1) Hyjet Express Sdn Bhd 2) M.L.H Services Sdn Bhd 3) PAKARGO Logistic Distribution Warehousing Sdn Bhd 4) Quantum Express Logistic Sdn Bhd 5) KNZ Mail Services Sdn Bhd 6) Tasco Express Sdn Bhd 7) BPL Logistic Sdn Bhd 8) Quick Courier (International) Sdn Bhd 9) BBB Express (M) Sdn Bhd
118 117 114 112 110 109 113 113
8) GD Express Sdn Bhd 9) ABX Express (M) Sdn Bhd 10) Skynet Worldwide (M) Sdn Bhd
2008 Stamp Themes

The Minister through the Stamps Advisory Committee approved 15 themes for stamps issuance in 2008. No. Theme 1. 2. 3. 4. 5. 6. 7. Bridges of Malaysia Nocturnal Animals 100th Anniversary of St Johns Ambulance of Malaysia Cultural Instruments and Artefacts II Annual Stamp Album 2007 Golden Jubilee of the Reign of Tuanku Sultan Kedah IDBF Club Crew World Championships 2008 Centenary Scouting in Malaysia Treasures of the Nations Visual Arts Date Issue 28 Feb 08 13 Mac 08 22 May 08 10 Jun 08 30 Jun 08 15 Jul 08 01 Aug 08 14 Aug 08 28 Aug 08 16 Sep 08 09 Oct 08 21 Oct 08 11 Nov 08 01 Dec 08 16 Dec 08
Domestic Mail Service Standards

As part of its efforts to improve the quality of service, the Commission enforced the mandatory performance service standards for domestic mail services with effect from 1 August 2008. Figure 1: Performance Requirements for Domestic Mail Delivery Services 5 Tier System Up to D+5 Pre-2008 3 Tier D+1 Local Delivery D+2 Zone A D+4 Zone B (2008-2010)
Total Number 671 349 257 5,068 2 48 4,872 72,146 32 396

Pos Mini Felda Dahlia, Pusat Jengka 3, Pahang
116 114 112 110 108 106 104
116
Table 1: Service Standards Note: Speed refers to the percentage of the total test letters that comply with the performance required as stated in Figure 1, i.e. for 2008, 88% of letters must achieve the performance required as stated in Table 1 above.
2001 2002 2003 2004 2005 2006 2007 2008
Figure 3: Number of Courier Service Providers (2001-2008) The courier services sector is becoming more competitive as players are set to increase service levels through business transformation exercises and higher utilisation of Information Technology such as Track and Trace and RFID (radio frequency identification). The top 10 Courier Companies in terms of annual turn-over are as follows: 1) Federal Express Services Sdn Bhd 2) DHL Worldwide Express Sdn Bhd 3) United Parcel Service (M) Sdn Bhd 4) Cen Worldwide Sdn Bhd 5) City Link (M) Sdn Bhd 6) Nationwide Express Courier Services Bhd 7) TNT Express Worldwide (M) Sdn Bhd
8. 9.
10. Royal Headgears 11. Unique Flowers 12. National Angkasawan Programme
Accessibility
The level of accessibility to postal services at the state level is presented in Figure 2. Accessibility is measured by the average population for each post office and mini post office per state.
Figure 2: Average of population per post office by states in 2008

43,727 2 28,999 28,774 9 27,860 27,870 4 0 24,505 25,862 26,959 0 9 2
5
Pos Mini Felda Sungai Tekam Utara, Jerantut, Pahang
Courier and Express Delivery Services

The courier and express delivery service industry plays a major role in providing both domestic and international connections crucial for both business and consumers alike. In 2008, the number of courier licencees increased to 113 from 109 in 2007. Nine new applications were approved, while five existing licencees did not renew
31,268
8
13. Sea Shells 14. Malaysian Cartoons Series I Lat (2008 Stamp Weeks)
16,852
Pahang has the best accessibility to postal services with one postal outlet serving 16,852 people. On the other hand, Sabah has the lowest accessibility with one post office serving 58,273 people on the average.
21,361 19,654 19,691 20,391 1

1 1
15. Premier Schools
PH
MLK
NS
PRLS
PRK
PP
TRGN SWK
KDH KTAN
KL
JHR SNGOR LAB
SBH
States
Table 3: Stamp Themes Approved for 2008
130
We collaborate with various counterparts, both regionally and internationally, to create cross-border industry alliances and smart partnerships. These engagements serve to enhance regulatory measures and practices towards mutual industry competitiveness, facilitate inbound and outbound investments and trade, as well as develop network and human resource capabilities for the ICT industrys onward growth.
09
Accelerating Growth Through Global Partnerships
International Affairs 132
132
133
partners, which is led by the Ministry of Foreign Affairs and International Trade and Industry. Currently, Malaysia holds several appointments in regional and international organisations which serve to strengthen our position in the respective fora: 1) ASEAN ICT Centre Director (founding director) - Puan Nur Sulyna Abdullah, Director, International Affairs (term 2007-2009) 2) APT Policy and Regulatory Forum Vice Chair - Puan Nur Sulyna Abdullah, Director, International Affairs (term 2006-2009) 3) Asia-Pacific Internet Research Alliance Board Member - Mr. Koay Hock Eng, Director, Statistical and Knowledge Resource Department In terms of functional focus areas, our international activities can be divided into the following: Management of frequency, numbering and Internet addressing Standards and interoperability Mutual Recognition Arrangements Trade and liberalisation Security and harmonisation of e-commerce activities Tariffs and accounting rates Content Co-operation and information exchange Regulatory roundtables Bilateral, regional and multilateral co-operation
The ASEAN ICT Centre

The ASEAN ICT Centre (AICTC) is a joint initiative by the ASEAN countries to manage and administer the ASEAN ICT Work Programme. The directorship of this virtual centre presently rests with Malaysia, namely in the person of SKMMs Director of International Affairs, Puan Nur Sulyna Abdullah. The AICTC has been instrumental in establishing procedures for project and fund management of the AICTC Fund and its disbursement towards the AICTC Work Programme. The centre also monitors the implementation of projects under the Work Programme. For the 2008-2009 Work Cycle, the Governing Council of the AICTC, comprising Senior Officials for Telecommunications and IT in ASEAN, evaluated and subsequently agreed to concentrate funding on projects which accelerate regional integration and ICT development. It was also agreed that projects with complementary outcomes be merged, thus creating synergy and more focused outcomes. For the 2008-2009 Work Cycle, there will be 11 projects for implementation under the AICTC which focuses on e-commerce, IPv6 readiness, broadband and content development.
International Affairs
SKMM continues to participate actively in international activities to promote Malaysias interest in the development of communications and multimedia within the international arena. More importantly, SKMMs presence and participation in international fora ensures that Malaysia is able to: Participate actively in influencing outcomes and developments in international fora; Manage progressive market liberalisation in the communications and multimedia sectors; Engage local communications and multimedia industry to identify export opportunities; and Keep abreast with international developments and trends in communications and multimedia. SKMMs international activities are guided by the Communications and Multimedia Act (CMA) 1998, in particular the first National Policy Objective to facilitate the transformation of Malaysia into an industry global hub. In planning and organising international engagements and activities, SKMM is
cognisant of the global communications and multimedia scenario especially the need to create resiliency in the industry during the global economic slowdown and to ensure that the countrys needs are met and protected. SKMM engages with various international organisations listed in a Ministerial Direction issued under Section 269 of the CMA 1998. Working in close partnership with the policy-maker, SKMM represents Malaysia as the regulatory authority in communications and multimedia while at the same time builds and co-ordinates Malaysias international profile and activities for this industry. Furthermore, SKMM collaborates with its various counterparts both regionally and internationally, to enhance regulatory measures and practices towards mutual industry competitiveness and growth, facilitate inbound and outbound investments and trade, as well as to develop network and human resource capabilities in communications and multimedia applications and transactions. These various engagements serve to create cross-border industry alliances and smart partnerships for the growth of the industry. Consequently, SKMM is also involved in various bilateral and multilateral negotiations such as Free Trade Agreements and Economic Partnership Agreements with our trade
Sectoral Focus Areas

Sectorally, SKMMs activities can be viewed through the following focus areas:
ASEAN
SKMM participates actively in the following ASEAN fora: ASEAN Telecommunications Regulators Council Meeting Telecommunications and IT Senior Officials Meeting (TELSOM) Telecommunications and IT Ministers Meeting (TELMIN) Border co-ordination meetings to manage and resolve any frequency interference and allocation matters with Malaysias neighbours: 1) Frequency Allocation Committee of Singapore, Malaysia and Brunei (FACSMAB) 2) Joint Technical Committee on Co-ordination and Assignment of Frequencies along the Malaysia-Thailand Common Border (JTC) 3) Joint Communications Committee between Malaysia and Indonesia (JCC) 4) Trilateral Co-ordination involving Indonesia, Malaysia and Singapore
ASEAN Cyberkids Camp

The ASEAN Cyberkids Camp was a project under the current ASEAN ICT Work Programme and a joint project between SKMM and the Ministry of Energy, Water and Communications together with Maxis Communications Berhad (Maxis). The ASEAN Cyberkids Camp was a Malaysian initiative endorsed by the ASEAN Ministers for Telecommunications and IT during their meeting in Bali on 29 August 2008. The ASEAN Cyberkids Camp was based on the highly successful Maxis Cyberkids Camp, a home-grown programme aimed as bridging the digital divide and building ICT capabilities among children in rural schools in Malaysia.
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APT Management Committee Meeting
The 32nd session of the APT Management Committee Meeting was held immediately after the General Assembly from 15 to 18 December 2008. The management committee is made up of all Members and Associate Members and meets once every year. Its role is to act on the strategic plan, policies and principles decided during the General Assembly, review and approve the yearly work programme, annual budget and accounts as well as supervise the work of the Secretariat. This Management Committee was attended by 29 countries including Australia, Bangladesh, Cambodia, Fiji, Korea, Lao PDR, Myanmar, Sri Lanka and Vietnam, two Associate Members, 13 Affiliate Members as well as representatives from the Asia-Pacific Broadcasting Union (ABU) and the International Telecommunication Union (ITU). The meeting saw the election of a new Chairman of the Management Committee. Mr. Kyu-Jin Wee from South Korea took over from Malaysias Encik Bistaman Siru Abdul Rahman who had successfully completed two consecutive terms as the Chairman. Internet Corporation for Assigned Names and Numbers (ICANN) International Multilateral Partnership Against Cyber Threats (IMPACT) APT - 14 meetings ITU - 23 meetings Border Co-ordination, Technical Committees - 33 meetings Postal - 5 meetings Internet - 5 meetings APECTEL - 2 meetings Satellite Co-ordination - 7 meetings WTO, Trade Related - 2 meetings Exhibitions - 1 event Study Visits - 2 visits (outbound) Others 21 meetings
The ASEAN Cyberkids Camp was a joint effort among ASEAN members to promote regional integration, strengthen multilateral cooperation and bridge the digital divide. The camp which was held in Petaling Jaya and Kuala Lumpur drew participation from 120 primary and secondary school children and their teachers from Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. During the week-long ICT camp, participants were taught computing, mobile applications and Internet skills. At the end of the camp, each country had to create a virtual museum of their respective cultures that incorporated multimedia, digital photography, audio editing and blogging. The camp aimed to equip and develop participants with the knowledge and skills to use technology and empower them to disseminate such skills to their peers, families and community upon their return.
IMPACT World Cyber Security Summit

SKMM organised the inaugural IMPACT World Cyber Security Summit (IMPACT WCSS) which was held in Kuala Lumpur from 20 to 22 May 2008. This summit saw a gathering of ministers, industry leaders, technology luminaries and cyber security experts from 27 countries including Australia, Canada, India, Japan, Mexico, Saudi Arabia, Singapore, South Korea, Thailand and the United States. The IMPACT WCSS included the inaugural meeting of the IMPACT International Advisory Board, a ministerial roundtable, plenary sessions and in-depth discussions on the latest cyber security threats, trends and issues facing countries. The Summit was officiated by the former Prime Minister of Malaysia YAB Tun Abdullah Ahmad Badawi, who delivered the keynote address. H.E. Dr. Hamadoun Toure, the Secretary-General of the ITU also delivered his address during the opening ceremony. The goal of the inaugural summit was to chart the direction of IMPACT as a global multilateral collaborative platform for a joint partnership between governments and the private sector to combat cyber security threats. Part of the effort will include the establishment of an early warning system i.e. the IMPACT Centre for Global Response which will facilitate swift identification and sharing of information with member-governments during cyber security emergency and threats. It is envisioned that this system will actively monitor threats and be a focal point for governments during any cyber security incidences. The Centre aims to play an important role in policy formulation, international co-operation as well as become a centre for training and promulgation of cyber security best practices. International Meetings Statistics 2008 As at 31 December 2008, SKMM participated in international meetings categorised as follows: ASEAN - 22 meetings
Visits to SKMM
SKMM continues to welcome foreign delegations for study visits in response to requests to share our experiences in a converged environment. In 2008, we received a total of 16 delegations as listed in Table 1. No. Foreign Delegates 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Communications and Media Commission of Iraq The Radio and Television Supreme Council (RTUK), Turkey Hong Kong Trade Development Council and Hong Kong Digital Entertainment Mission Permanent Secretary, Ministry of Communications, Brunei Darussalam Communications Commission of Kenya Asia Pacific Carriers Coalition (APCC) The Corps des Telecommunications, France Korea Association of Information Technology (KAIT) Ministry of Communications, Brunei Darussalam Ministry of Posts and Telecommunications, Bangladesh Communications Commission of Kenya Ministry of Communications, Brunei Darussalam Mayor of Guro District and officials from KOTRA, Republic of Korea Date 19 - 21 Feb 28 Feb 29 Feb 21 Mar 28 - 30 Apr 10 Jul 10 Jul 18 Jul 21 - 25 Jul 23 - 25 Sep 9 Oct 30 Oct 5 Nov
Asia-Pacific Region
SKMM is actively involved in the following fora in the Asia-Pacific Region: Asia-Pacific Telecommunity (APT) APEC Telecommunications Working Group (APEC TEL) Asia-Pacific Postal Union (APPU) Asia-Pacific Broadcast Regulators Roundtable
13th Asia-Pacific Regulatory Roundtable (APRR)

The Asia-Pacific Regulatory Roundtable (APRR) is an annual meeting attended by regulators of the broadcasting industry from countries in the Asia-Pacific region. The Regulatory Roundtable serves as a platform where broadcast regulators in the region discuss current issues relating to content and broadcasting with a view to sharing ideas, experiences and best practices. The main purpose of the meeting is to: Foster closer relationships among broadcasting regulators in the region; Share information, best practices and knowledge on new developments or issues affecting the broadcasting environment; and Promote co-operation between the regulators to address issues relating to content and new media. The organisation of the roundtable rotates every year. The 13th APRR was held at Impiana Hotel, Kuala Lumpur from 28 to 30 October 2008. Prior to this meeting, Malaysia last hosted the APRR in 2001.
APT General Assembly

The APT General Assembly is the supreme body of the Asia-Pacific Telecommunity (APT), which comprises all its Members and Associate Members. The General Assembly meets every three years to deliberate on the strategic direction of the APT for the next cycle and consequently establishes general policies and principles to achieve its objectives. It also determines the annual budgets and limits on expenditure as well as accedes to any agreements with external parties. The 11th APT General Assembly was held in Kuala Lumpur from 11 to 13 December 2008 and was attended by 30 members of the APT including Australia, China, Iran, Japan, India, South Korea, Indonesia, New Zealand, Pakistan, Philippines, Singapore and Thailand; two associate members Hong Kong and Macao; 10 affiliate members including TM International Berhad and Green Packet as well as representatives from the Asia-Pacific Broadcasting Union (ABU) and the International Telecommunication Union (ITU). During the assembly, YBhg Dato Dr. Halim Man, the Secretary General of the then Ministry of Energy, Water and Communications was elected to the post of President of the APT for the next three years.
International/Intergovernmental Organisations
SKMM actively participates in the following international fora: International Telecommunication Union (ITU) Universal Postal Union (UPU) World Trade Organisation (WTO)
Ministry of Posts and Telecommunications, Bangladesh and 10 - 11 Nov Bangladesh Telecommunications Regulatory Commission (BTRC) The Frequency Management and Technology Analysis Division of the Ministry of Information and Communications, Nepal Ministry of Communications, Posts and Telegraphs, Myanmar 1 - 2 Dec 2 - 4 Dec
Table 1: Study Visits to MCMC by Foreign Delegations in 2008
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We gain our strength to pursue greater excellence by continuing to deliver performance beyond expectations. This is achievable through combined efforts and commitment to modernise talent management practices, enhance learning and training, device creative-retaining practices, upgrade technological infrastructure and improve physical working environment.
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Delivering Better Performance for Greater Effectiveness
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Overview
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performance from multiple dimensions, with emphasis on inter-linkages between strategy planners, decision-makers and strategy implementers. In view of the breadth and depth of a communication regulators functions as well as its unique challenges posed, some adaptation of the Balanced Scorecard principles were required rather than direct absorption. Henceforth, many benchmark learning sessions were undertaken with fellow regulators like Bank Negara Malaysia, Employees Provident Fund (EPF) and others. The adoption of a Strategy Focused Organisation (SFO), as a principal theme for organisational capacity and capability development in 2008, has successfully paved the way for a more deliberate management of Key Performance Indicators (KPIs), focusing on areas relevant to the core objectives of the Commission. The combined theme of Strategy Focused Organisation (SFO) and Process Improvement would be the centre of the organisational development programmes of the Commission for 2009. Recognising the importance of talent, the Human Resource Departments profile was elevated to become Human Capital Management Division (HCMD). Its bigger and enriched role is to provide strategic and managerial leadership stance besides strengthening the human resource team in order to manage the institutionalisation of SKMMs talent management infrastructure. The establishment of HCMD also augurs well for its employees, as the division now has a full voice and representation in Executive Committee Meetings, among others. With the establishment of HCMD, SKMM Academy was also institutionalised and is responsible in creating a centre of excellence among staff members and prepare them with the functional knowledge and opportunities for career growth. Another senior management talent that was recruited to provide higher horsepower was for the Strategic Information System Division with its core function to integrate SKMM IT System and infrastructure and development of SKMM IT Strategic Blueprint. In line with creating a positive and knowledge-based workplace culture, we initiated a structured induction programme for new recruits. The programme was designed to familiarise the recruits into SKMMs workplace culture, become more engaged and equipped with a better understanding of the regulatory framework of SKMM. Given the knowlege that about 3% of the strategic levels of P7 job grade and above will become eligible for retirement in the next three years, priority will be given to grow, attract and retain good talents in the near furture through our Succession Strategy Work Plan. Talent strength as at 31 December 2008 Attracting and Retaining Talent Recruitment Resignation Promotion There were 35 promotions exercised in 2008.
Positions Chief Operating Officer Senior Director Director Director Deputy Director / Senior Executive / Senior Engineer / Senior Analyst Assistant Director / Executive / Engineer / Analyst Grade P12 P8 P7 P6 P5 P4 Number Of Staff 1 9 22 17 61 137 247 Sub Total Executive Executive Secretary / Assistant Executive / Technical Support Assistant Executive / Secretary Driver / General Worker Total S3 S2 S1 12 90 24 126 373 Non-Executive
Human Capital Development

The year 2008 has been significant in our continued pursuit to strengthen and enhance the organisations capabilities and capacity to achieve a higher level of efficiency and effectiveness in realising our responsibilities and roles. During the year, further progress was achieved to transform the Commission into a strategy focused organisation with innovation-driven practices. The Organisational Transformation and changed foundation that was laid in the previous year was further mobilised and structured with emphasis on organisational scorecards, performance management culture and system, internalising core values and improving service delivery system. In terms of Organisation and Human Capital initiatives, our key focus was on developing internal talents in alignment to our performance-driven culture. This initiative, we envisaged, would lead to us having a better and stonger presence in industry development. Continued emphasis was therefore placed on talent management, retaining core capabilities and investment in human capital through growing, attracting and retaining the talent pool. Our investment in human capital development also included continuous learning and developmental programmes to inculcate a high performance work culture.
Training and Learning Management

The establishment of SKMM Academy in 2008 is to support strategic thrust in capacity building in line with the national policy objectives for the Communications and Multimedia Industry as written in Section 3 (2) of CMA 1998. It is also in tandem with the second key thrust of the 9th Malaysia Plan - To raise the countrys capacity for knowledge and innovation and nurture first class mentality and SKMMs human resource development objective: To create a workforce within SKMM which is authoritative, competent and with high integrity much sought-after and highly admired by the industry. These strategies will be put into action through the implementation of its training programme (external and internal). Some of the programmes that were organised internally included: SKMM Induction Programme Finance for Non Financial Managers Business Etiquette: Professional Presence in Business Spectrum Monitoring Techniques Spectrum Auction Design and Implementation Workshop SKMM Academy also collaborated with universities and the industry to organise training programmes that benefitted both parties. Amongst the training programmes organised were: Overview and Fundamentals of WiMAX (collaboration with MMU) Colloquium on Communications and Multimedia Act 1998: Perspectives and Way Forward (collaboration with UMCoRS, University of Malaya) HF Broadcasting Co-ordination & Notification (collaboration with the ITU) During the year, SKMM Academy had invested a total amount of RM1.68 million on training with Average Cost per Employee of RM4,504.02. Total training days attended was 2,150 days with an Average Days per Employee of 5.7 days.
The Talent Challenge

In the next five years it is expected that the global market will regain its strength from the current global financial crisis. With this belief, we will therefore face a talent challenge. Consequence to this, there is a need to devise creative retaining practices and employ effective recruiting strategies to obtain a skilled and engaged employee database. Our current HR practices are geared to motivate and retain the best employees to meet organisation goals and objectives. We source and hire candidates with the right experience, expertise and attitude and once recruited, we continuously manage their development and career paths through the creation of a positive workplace culture.
Organisational Development
The change management programmes in 2008 endeavoured to break new grounds in providing SKMM with enhanced capacities and capabilities to deal with the challenges brought about by a dynamic and uncertain external environment. SKMM continued to promote performance improvement. The initiatives during the year focused on programmes to modernise talent management practices, enhance learning and training, improve processes to improve cycle time within client charter promise, upgrade technological infrastructure within human capital processes and improve the physical working environment. One of the tools that SKMM adopted in 2007 for the purpose of enhancing the process of performance management is the basic starter version of Balanced Scorecard. The Balanced Scorecard approach emphasises the need to view organisational
There were 180 vacancies in 2008 There were 21 with breakdown as follows: resignations New Headcount 159 recorded in 2008. Resignation 21 Employee Turnover There was 137 recruitments for rate is at 7%. the year of which 60% were for executive grade level (graduates).
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Application Systems and Operations
For 2008, SISD successfully rolled out the following application systems to improve SKMMs operations: a. Complaint Management System (Aduan SKMM) - Manage complaints from the public on any issues related to the communications and multimedia sector, which include Internet services, Postal/Courier services, Digital Certifications, Telecommunication and broadcasting industries in Malaysia. The system also allowed the public to submit and monitor complaints logged through URL address https://aduan.skmm.gov.my b. e-Spektrum - Enable public to submit their Apparatus Assignment application and monitor the application submission online through URL address https://espektrum.mcmc.gov.my c. e-Payment - Additional payment channel to enable the public to pay through Internet Banking payment gateway services; either through Financial Process Exchange (FPX) or Credit Card (MIGS) through URL address https://epayment.skmm.gov.my d. SKMM Search Hub - Search Hub engine for SKMMs website. User can search for specific keyword and the intelligent search will locate the needed information through URL address http://search.mcmc.gov.my e. e-Info services Website http://www.spectrumresearch.com.my - The website is designed to serve as a focal point for information, knowledge development and research related to spectrum matters. It can also be utilised to develop knowledge resources in the management of spectrum. The services provided in this website provide platform collaboration, sharing and exchange of knowledge and expertise through, forum, chat, personal messages, document and information sharing. http://www.wrcmalaysia.my - Portal for Spectrum Research collaboration programme. Besides that, the system enhancement is based on the existing application systems; Human Resource Management System (HRMS), Spectrum Management System, e-Info Service Websites for the compliance, improvement and alignment toward IS strategic plan. processes within SISD. Besides monitoring compliance to IT Best Practices such as ITIL and CoBIT, it will also provide centralised project co-ordination/ management services for IT/ IT-related development projects within SKMM. parts of the applications system required, and explains sub-system level aspects of the overall strategy. The IT/IS architecture framework is designed and developed according to the following principles: Availability This principle emphasises the degree to which the IT infrastructure is operable and available for business and organisation functionality. It ensures that the IT infrastructure is built according to the required uptime. Scalability This principle emphasises the ability of IT infrastructure to handle growth. The IT infrastructure must be able to manage with the Commissions requirement over the next three to five years. Connectivity This principle emphasises the ability of IT infrastructure to provide the necessary for the different type of connection required by the business or organisation solution. Security This principle emphasises securing the IT infrastructure from all angles of the threat. The fundamental objective is to reduce the Commissions risk to an acceptable level. Manageability This principle emphasises the ease of management for the IT infrastructure. The design will cater for an integrated management to simplify the administration and operation tasks. Various deployment strategies and plans will be rolled out based on the proposed IT Strategic Plan in various stages in the years 2009 and 2010. This is to ensure SKMM has an integrated Information Infrastructure, Enterprise Business Application and Knowledge Management are all well connected and collaborated to meet SKMMs vision and mission for the next five years.
IT Strategic Review
In June 2008, a new Division called the Strategic Information Services Division (SISD) was established with the vision of transforming SKMMs IT from an internal support department into a strategic division actively involved in all SKMM strategic initiatives, namely providing efficient and integrated IT service delivery to internal divisions as well as establishing/developing interfaces to the industry. This new division is headed by a new senior director, Encik Nik Aziz Nik Yaacob. As part of the transformation, three new departments were created, namely Infrastructure and System Support, Application Management, Security and Policy. Staffing within the new division comprised resources from Management Information Systems Department (MISD) and several new entries from the corporate sector. To prepare for a more efficient and strategic role, staff were assigned to the new department according to individual skill sets and technical inclination rather than broad-based IT skills.
Head of Division
Infrastructure and System Support Department

The role and responsibilities of the Infrastructure and System Support Department are: Ensure the SKMMs IT infrastructure and systems support the business, and enhance all of its core business processes, be they front office, back office, or enabling processes. Provide a flexible responsive IT architecture framework to improve delivery of service to SKMMs clients. Create an IT architecture framework process that is easy to manage and monitor in the future. Improve the quality, integrity and availability of SKMMs data. Structure the IT organisation in a way that supports the implementation of the strategy.
IT Help Desk
The year 2008 saw the start of a centralised internal IT Help Desk providing support services to further enhance the SISD role, consolidating all IT support requests efficiently and effectively for SKMM. The Help Desk is manned by two support staff members and operates from 8am 7pm, with afterhours calls forwarded to an on-duty offsite staff member.
Application Management
Security and Policy
Infrastructure and System Support
Application and web
Applications
Help Desk and Support
Network
Moving Forward - IT/IS Strategic Plan

In line with the rapid technology advancement and to meet the industry and SKMMs internal needs and the challenges ahead of technology in the coming years, SKMM engaged a consultants service to map out an overall five years SKMM IT/IS Strategic Plan Blueprint to support the vision and mission of SKMM. The overall objectives of the IT/IS Strategic Plan are to provide a common and shared IT Enterprise: Platform to enhance public service levels, support improved decision-making process, improve industry governance, facilitate information sharing and contribute to industry development; Create an IT architecture framework process that is easy to manage and monitor in the future; Improve the quality, integrity and availability of SKMMs data. The IT/IS strategy plan provides the overall architecture of the ICT components, applications and infrastructure required by SKMM and introduces the component
Help Desk
Support
Application Management Department

The role and responsibilities of the Application Management Department are: Supervise and evaluate Information Systems requirements and resources. Manage a diverse team of IT professionals (team leaders, professional services and outsourced resources). Co-ordinate development issues and ongoing maintenance of the application system. Manage maintenance schedule and support activities; database tuning, patches update, system upgrading, periodically server health-check, back-up and recovery processes, request/problem- solving for helpdesk. Co-ordinate SKMMs staff on information retrieval to initiate/contribute environment of information and knowledge sharing.
Security and Policy Department

July 2008 marked the birth of the new department within SISD called Security and Policy Department. Its main task is to refine and document IS Policies, Procedures and Processes. It undertook preliminary initiatives to develop and improve
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We unite all Malaysians through nurturing of local contents and culture, facilitating a single ICT resource centre for industries to look for manpower, capital and knowledge as well as creating a single, robust application environment where everyone can easily access to ICT services in any part of Malaysia.
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Building 1Malaysia Through ICT Convergence
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Building 1Malaysia Through ICT Convergence
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13 12 May Launch of KL Wireless Metropolitan Project, Menara DBKL 14 20-23 IMPACT World Cyber Security Summit, May Shangri-La Hotel, Jalan Sultan Ismail, Kuala Lumpur 15 3 Jun Mobile Digital Signature Symposium 2008, SKMM 16 12-13 USP Symposium on Communication Jun Technologies for Underserved Communities, Klana Resort, Seremban 17 15 Oct Launch of Mobile Number Portability 18 28-30 Experiencing Convergence, Oct MyBroadband 08 Conference & Exhibition at KLCC 3 7 11 15
Corporate Highlights
1 19 Jan East-West Highway Tower Launch, Gerik 2 22 Jan Launch of Communications Tower Pulau Tuba and Pusat Komputer Jalurlebar Perpustakaan Awam Kuah, Langkawi 3 23 Feb Launch of e-Komuniti Tuaran and Launching T2 Services in Kg Batangan, Tuaran, Sabah 4 28 Feb Launch of Broadband Library @ Perpustakaan Awam Samarahan 5 29 Feb Launch of the Community Broadband Centre and Launch of Time 2 Communications Tower in Simunjan District in Sarawak 6 1 Mar Launch of SKMM Sandakan Branch, Sabah 7 14 Mar Networked Content Development Grant (NCDG) Awards Ceremony, SKMM Auditorium 8 30 Mar Launch of the Domestic Roaming Tower in Jeli, Kelantan 9 1 Apr Conference on Malaysian Communications and Multimedia Market 2008, SKMM Auditorium 10 3 Apr UCC Launch in Gerai JKKK, Kg Sg Pinggan, Benut Pontian, Johor 11 4 Apr Launch of Tower T2 in Tanjung Piai, Kukup Pontian Tanjung Piai Resort, Johor 12 19 Apr Launch of CATI Centre and Official Launch of the SKMM Household Use of the Internet Survey 2008, Wisma Pahlawan, Kuala Lumpur
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As the main regulator and industry developer of Communications and Multimedia in Malaysia, good governance is fundamental to SKMMs operations. The principle of good governance, which is ingrained in the Malaysian Communications and Multimedia Commission Act 1998, calls for transparency to ensure stakeholders confidence in the decisions made by SKMM, and understand how SKMM contributes to industry growth and consumer protection.
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Maintaining Transparency and Good Governance
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SKMM is committed to transparency and public disclosure within the confidential boundary stipulated under the MCMCA 1998 and CMA 1998. The principle of transparency which underpins good corporate governance is very much a significant feature of the regulatory framework in the CMA 1998. The principle of openness is clearly embedded in the CMA 1998 wherein SKMM has the obligation to carry out public inquiry and consultations with the stakeholders on matters of significant interest to the public or licencees. A public inquiry may be launched by SKMM on its own initiative, or by a request from a person. Alternatively, the Minister may direct SKMM to conduct a public inquiry. A public inquiry will generally involve the Commissions announcement of the inquiry and call for submissions in respect of the matters being examined. SKMM then must publish a report of its findings as a result of the inquiry. The principle of transparency is also reflected in the provision pertaining to the maintenance of registers. SKMM has the obligation under the CMA 1998 to maintain registers in both the physical and electronic forms. The matters that are required to be registered include Ministerial Directions, Ministerial Declarations, Ministerial Determinations, Commission Directions, Commission Determinations, licences issued and spectrum assigned to licencees. Another feature of transparency which is uniquely provided for in the CMA 1998 is the requirement for SKMM to provide a written statement of reasons if requested by a person who is aggrieved or whose interest is adversely affected by any decision of SKMM. The sound governance mechanism provided in the CMA 1998 is aimed to give confidence to the stakeholders in the decisions made by SKMM and ensure that they have a full understanding of the way SKMM implements Government policies and how these would contribute to industry growth and consumer protection. As a statutory body, SKMM is accountable for the public funds that it maintains and the expenditure that it incurs for the performance of its statutory duties. It is a requirement under the MCMCA 1998 for the audited financial statements of the Commission together with a report dealing with the activities of the Commission for each preceding financial year to be tabled to the Parliament. This is done through submission of the annual report of SKMM to the Minister who shall cause the annual report to be laid before both Houses of Parliament. Based on SKMMs given role, the need to maintain its operational independence and protect its reputation, SKMM subscribes to three basic values, namely Authoritativeness, Integrity and Competence (AIC). the-day-to-day affairs and has general control of the employees of the Commission. In discharging his duties, the Chief Executive acts under the general authority and directions of the Commission. He chairs the Executive Committee which comprises the senior management team responsible for the operations and management of the strategy and overall direction of the organisation. The Executive Committee meets on a weekly basis. The Members of the Executive Committee are as listed on page 150. to assist the Audit Committee in assessing the adequacy and integrity of the Commissions system of internal control. However, during the year in review, in order to further enhance the internal control of the organisation, the Internal Audit Department was established in June 2008. In 2008, SKMM migrated from the cash basis financial reporting system to accrual basis as well as adopted full Financial Reporting Standards (FRS). To ensure that the migration to the accrual accounting reporting system was implemented successfully, the internal audit reviews were mainly focused on revenue assurance. The internal auditors also ensured that recommendations to improve internal audit controls were followed through by the Management and it will continue with its assessment of the sufficiency of the internal control systems from time to time based on the approved internal audit plan. he became the Chief Operating Officer of SKMM. Subsequently, YBhg. Datuk Mohd Zain Mohd Dom, a Commission Member representing the Government was appointed as a member of the Audit Committee. Currently, the Members of the Audit Committee Members are YBhg. Datuk Dr. Abdul Samad bin Hj. Alias who is the Chairman of the Audit Committee, YBhg. Tan Sri Datuk C. Rajandram and YBhg. Dato Mohd. Zain Mohd. Dom. The Audit Committees primary function is to assist the Commission in fulfilling its responsibilities with respect to: a) Approval of the audited Statement of Accounts of the Commission which shall include a balance sheet and income and expenditure statement of the SKMM Fund and USP Fund for the preceding financial year; b) Oversight in respect of the adequacy of the system of internal control that management has established; and c) Oversight of the internal and external audit processes. The Audit Committee is granted with the authority to investigate any matter or activity involving financial accounting and financial reporting, as well as the internal control of the Commission. In this regard, the Committee will have the authority to approve the retention of external professionals to render advice and counsel in such matters. During the financial year, the main activities of the Audit Committee included: a) Reviewing the Financial Statements of the SKMM Fund and USP Fund for the year ended 31 December 2008 prior to its presentation to the Commission and onward submission to the Minister; b) Reviewing and approving the external and internal audit plans for the financial year; and c) Reviewing the internal audit findings and recommendations.
Governance and Audited Financial Statements

In general, corporate governance refers to oversight mechanisms, including the processes, structure and information used for directing and overseeing the management of an entity*. It encompasses the means by which members of the board and senior management are held accountable for their actions as well as establishment and implementation of oversight functions and processes. In the context of the public sector, governance relates to the structures and processes for decision-making, responsibility and accountability at the leadership level. SKMM considers governance as fundamental to its operations as its actions and decisions would have a significant impact on the stakeholders. The principles of good governance is ingrained in the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998 where the powers and functions of SKMM are specified. SKMM, primarily, is required to play a dual role, as an industry developer and industry regulator. As an industry developer, it recommends regulatory policies and implements policy decisions contained in the legislations and Ministerial Directions provided for under the Communications and Multimedia Act (CMA) 1998. The CMA 1998 establishes the framework for regulating the communications and multimedia sector. A significant feature of the CMA 1998 is the identification of the Governments National Policy Objectives (NPO) for the communications and multimedia sector. The 10 NPOs provide the basis and rationale for policy formulation and regulatory intervention. The communications and multimedia sector is a constantly evolving sector, dictated by technology changes and the NPO gives the direction for the communications and multimedia industry.
*Malaysian Code of Corporate Governance 2002.
Meetings
In 2008, the following meetings were held at the Commission level: a) 13 Commission meetings; b) 3 Audit Committee meetings; c) 3 Human Resource Committee meetings; d) 2 Networked Content Development Grant Committee meeting; and e) 1 Stamp Advisory Committee meeting; and at the Management level: f) 44 Executive Committee meetings; g) 20 Licensing Committee meetings; and h) 2 Finance Committee meetings. During the year in review, in addition to the above governance activities, regular briefings were conducted to the Minister of Energy, Water and Communications to present SKMMs views on issues and challenges confronting the communications and multimedia industry in Malaysia, and to discuss the implementation of various policy recommendations. In fulfilling its duties as a statutory authority, SKMM, whenever required, provides briefings to the Members of Parliament.
Governance Structure
The Commission consists of nine members appointed by the Minister as follows: a) Chairman; b) three members representing the Government; and c) not less than two but not more than five other members. The Commission is chaired by YBhg. Datuk Dr. Halim Shafie and its detailed composition is published in pages 7-15. By virtue of Section 20 of the MCMCA 1998, the Chairman of the Commission is also the Chief Executive. Besides YBhg. Datuk Dr. Halim Shafie, Encik Mohamed Sharil bin Mohamed Tarmizi, the Chief Operating Officer of the Commission, is the only other member who is from SKMMs Senior Management Team. The Commission meets at least once a month. The Commission has oversight over the fulfilment of SKMMs general duties and specific statutory responsibilities as specified under the MCMCA 1998 and CMA 1998 while the Chairman, who is also Chief Executive, is responsible for the overall administration, management of the functions and
Relationship with External Auditors

SKMM ensures that there is a formal and transparent arrangement for the achievement of the objectives and maintenance of a professional relationship with the external auditors through the Audit Committee. The role of the auditors and their participation during the year is stated in the Report of the Audit Committee.
Committees of The Commission

As provided under Section 15 of the MCMCA 1998, the Commission established the following committees to assist the Commission in the performance of its functions.
Audit Committee
The Audit Committee comprises three members of the Commission. During the year in review, there was a change in the membership of the Audit Committee. Encik Mohamed Sharil Mohamed Tarmizi resigned as a Member of the Audit Committee in June 2008 when
Internal Control
SKMM previously outsourced its internal audit function to M/s Deloitte Enterprise Risk Services
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the Ministry of Energy, Water and Communications (KTAK), Pos Malaysia Bhd. and Philatelic Society of Malaysia, and they are: Encik Suandi Hassan (Representative of the Ministry of Energy, Water and Communications on behalf of the Secretary General); Datuk Abu Huraira bin Abu Yazid, Chief Executive of Pos Malaysia Bhd; Y.M. Professor Dato Raja Zahabuddin bin Raja Yaacob; Mr. V.T. Nathan; and Mr. C. Nagarajah. In 2008, the Stamp Advisory Committee approved 15 stamp themes. The detailed list of the stamp themes issued in 2008 is reported in the Postal section of the Annual Report.
The Chief Operating Officer, the Senior Director of Management Services, Finance and Accounts Director are in attendance at all Audit Committee meetings, as are the internal auditors. The external auditors, however, are required to attend the meetings based on invitation. Apart from being tabled to the Commission, the decisions of the Audit Committee are followed up through the Management Finance Committee chaired by the Chairman of SKMM.
Human Resource Committee

YBhg. Dato Dr. Halim Man, a member representing the Government is the Chairman of the Human Resource Committee. The other members of the Human Resource Committee are YBhg. Datuk Dr. Halim Shafie, former Chairman of SKMM and Y.M.Tengku Zaib Raja Ahmad, the Senior Director of Human Capital Division who replaced Tuan Hj. Ruzlan Zabidi, the Senior Director, Management Services Division in November 2008. During the year in review, the Human Resource Committee met three times to deliberate on matters pertaining to recruitment and promotion of senior directors, senior management, recommendation for the payment of bonus and annual salary increment for the approval of the Members of the Commission.
Members of the Executive Committee

YBhg. Datuk Dr. Halim Shafie Chairman Members: Encik Mohamed Sharil Mohamed Tarmizi (with effect from 16 June 2008) Chief Operating Officer YBhg. Dato Jailani Johari Senior Director, Universal Service Provision Zamani Zakariah Senior Director, MyICMS Toh Swee Hoe Senior Director, Research and Planning Mohd Aris Bernawi Senior Director, Resource Assignment and Management Amarjit Singh Senior Director, Content, Consumer, Network Security and Postal Mohd Ali Hanafiah Senior Director, Technology, Standards and Network Laila Hassan Acting Senior Director, Licensing and Economic Regulations Ruzlan Zabidi Senior Director, Management Services Nik Abdul Aziz Nik Yaacob (with effect from 2 June 2008) Senior Director, Strategic Information and System Tengku Zaib Raja Ahmad (with effect from 11 August 2008) Senior Director, Human Capital Management Dato Tengku Sarafudin Badlishah Director, Legal and Secretarial In Attendance: Nur Sulyna Abdullah Director, International Affairs Zeti Marziana Muhamed Director, Corporate Communications Nuraffiza Ahmad /Sharina Md Deris - Secretary
Financial Statements for the Year Ended 31 December 2008
Networked Content Development Grant Management Committee

The Networked Content Development Grant Management Committee (NMC) is chaired by YBhg. Dato Dr. Halim bin Man, a Member representing the Government. The other members of the NMC are two senior directors from SKMM and senior officials representing the Ministry of Energy, Water and Communications. The NMC is authorised by the Commission to consider and approve the recommendations by the Networked Content Development Grant Business Technical Committee (NBTC) for award of the grants to the successful applicants. In 2008, the NMC met twice and deliberated on the recommendations of the NBTC. Six applications for grants were approved in 2008, the details of which are elaborated in the section on content development activities.
Stamp Advisory Committee

The Stamp Advisory Committee of the Commission is entrusted with the responsibility to consider and recommend the annual stamp themes and the number of themes appropriate to be issued in the year for the Ministers approval. The Stamp Advisory Committee is chaired by YBhg. Datuk Dr. Halim Shafie, Chairman of SKMM, while the members of the committee consist of representatives from
152
153
Statutory Declaration
I, Hj. Ruzlan Zabidi, the officer primarily responsible for the financial management of the Malaysian Communications and Multimedia Commission, do solemnly and sincerely declare that the financial statements set out on pages 155 to 170 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed in Kuala Lumpur on 28 April 2009.
Statement by the Members of the Malaysian Communications and Multimedia Commission

We, Datuk Dr. Halim bin Shafie and Datuk Dr. Abdul Samad Hj. Alias, being two of the Members of the Malaysian Communications and Multimedia Commission, do hereby state that in the opinion of the Members of the Commission, the financial statements set out on pages 155 to 170 are drawn up in accordance with applicable approved Financial Reporting Standards issued by the Malaysian Accounting Standards Board so as to give a true and fair view of the state of affairs of the Malaysian Communications and Multimedia Commission as at 31 December 2008 and of its income and expenditure and cash flow for the year ended on that date.
On behalf of Members of the Malaysian Communications and Multimedia Commission:
......... Datuk Dr. Halim bin Shafie Chairman
... Datuk Dr. Abdul Samad Hj. Alias Commission Member Before me:
......... Hj. Ruzlan Zabidi
Selangor, Date: 28 April 2009
154
155
Balance Sheet as at 31 December 2008
Note
Assets Property, plant and equipment Current assets Fees and other receivables Cash and cash equivalents Total current assets Total assets Represented by: Accumulated fund Liabilities Non-current liability Deferred income Current liabilities Deferred income Other payables and accrued expense Taxation Provision for TV receiver licences refund Federal consolidated fund Total current liabilities Total liabilities KPMG Firm Number: AF 0758 Chartered Accountants Mohamed Raslan Abdul Rahman Approval Number: 1825/05/09(J/PH) Chartered Accountant 3
Independent Auditors Report to the Members of the Malaysian Communications and Multimedia Commission
We have audited the financial statements of the Malaysian Communications and Multimedia Commission (Commission), which comprise the balance sheet as at 31 December 2008, and the income and expenditure statement, statement of total recognised gains and losses and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 155 to 170. Commission Members Responsibility for the Financial Statements The members of the Commission are responsible for the preparation and fair presentation of these financial statements in accordance with the Financial Reporting Standards in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Commissions preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commissions internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Members, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with the Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Commission as of 31 December 2008 and of its financial performance and cash flows for the year then ended. Other Matters This report is made solely to the members of the Commission, as a body, in accordance with Section 47(2) of the Malaysian Communications and Multimedia Commission (MCMC) Act 1998 and for no other purpose. We do not assume responsibility to any other person for the content of this report.
2008 RM000
135,533
2007 RM000
104,127
4 5
29,006 1,173,278 1,202,284 1,337,817
40,569 990,668 1,031,237 1,135,364
1,091,364
916,565
129,310
128,901
7 8 9 10
69,735 45,662 1,234 - 512 117,143 246,453 1,337,817
58,520 30,120 48 95 1,115 89,898 218,799 1,135,364
Petaling Jaya, Date: 28 April 2009
The notes on pages 160 to 170 are an integral part of these financial statements.
156
157
Statement of Total Recognised Gains and Losses for the Year Ended 31 December 2008
2007 RM000
72,263 179,383 33,684 2,492 1,110 288,932 The Commission Members have not recognised gains and losses other than the net surplus for the current financial year and the previous financial year.
Income and Expenditure Statement for the Year Ended 31 December 2008
Note
Income Operating licence fees Spectrum fees Interest income Gain on disposal of property, plant and equipment Reversal of allowance for doubtful debts Other income
2008 RM000
77,788 220,071 39,074 99 215 3,400 340,647
Expenditure Rebates for operating licence fees Human resource expenses Administrative expenses Audit fee Rental expenses - premises - network - others Depreciation of property, plant and equipment Allowance for doubtful debts Others
33,353 34,734 42 739 863 385 25,542 1,332 3,635 100,625
632 26,012 30,737 55 690 1,473 426 9,899 1,827 1,574 73,325 215,607 (9,090) 206,517
Excess of income over expenditure before tax Tax expense Excess of income over expenditure after tax 11
240,022 (10,223) 229,799
158
159
Cash Flow Statement for the Year Ended 31 December 2008 (continued)
2008 RM000 2007 RM000
215,607 (33,684) 9,899 191,822 249,716 1,115 44,734 (11,028) 476,359 (9,175) 467,184 Cash and cash equivalents comprise: Deposits placed with licenced banks Cash and bank balances 1,172,261 1,017 1,173,278 989,558 1,110 990,668
Cash Flow Statement for the Year Ended 31 December 2008

Cash flows from operating activities Excess of income over expenditure before tax Adjustments for: Interest income Depreciation of property, plant and equipment Gain on disposal of plant and equipment Operating surplus before changes in working capital Changes in working capital: Fees and other receivables Federal consolidated fund Deferred income Other payables and accrued expenses Cash generated from operations Tax paid Net cash generated from operating activities Cash flows from investing activities Proceeds from disposal of property, plant and equipment Acquisition of plant and equipment Interest received Net cash used in investing activities Cash flows from financing activities Payment to the consolidated trust fund Contribution to the Sarawak Rural Broadband Initiative Project Refund to individual licencee Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December The notes on pages 160 to 170 are an integral part of these financial statements.
2008 RM000
2007 RM000
240,022 (39,074) 25,542 (99) 226,391 15,593 (603) 11,624 15,447 268,452 (9,037) 259,415
99 (56,948) 35,044 (21,805)
(27,409) 23,324 (4,085)
(45,000) (10,000) (55,000) 182,610 990,668 1,173,278
(115,000) (289) (115,289) 347,810 642,858 990,668 The notes on pages 160 to 170 are an integral part of these financial statements.
160
161
Notes to the Financial Statements (continued)
1. Basis of Preparation (continued)
(b) Basis of measurement The financial statements have been prepared on the historical cost basis. Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Commissions functional currency. All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated. Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgement in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: Note 4 - allowance for doubtful debts
Notes to the Financial Statements

Principal Activities
The principal activities of the Malaysian Communications and Multimedia Commission are to implement and to enforce the provisions of the communications and multimedia laws as stipulated in the Communications and Multimedia Act (CMA) 1998 and the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998. The address of the principal place of business is as follows: Principal place of business 63000 Cyberjaya Selangor Darul Ehsan The financial statements were approved by the Commissions Members on 28 April 2009.
(c)
(d)
1.
Basis of Preparation
(a) Statement of compliance The financial statements of the Commission have been prepared in accordance with applicable approved Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB) and accounting principles generally accepted in Malaysia. The Commission has not applied the following accounting standards (including its consequential amendments) and interpretation that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective: FRSs / Interpretation FRS 4, Insurance Contracts FRS 7, Financial Instruments: Disclosures FRS 8, Operating Segments FRS 139, Financial Instruments: Recognition and Measurement IC Interpretation 9, Reassessment of Embedded Derivatives IC Interpretation 10, Interim Financial Reporting and Impairment Effective date 1 January 2010 1 January 2010 1 July 2009 1 January 2010 1 January 2010 1 January 2010
2.
Significant Accounting Policies

The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and have been applied consistently by the Commission, unless otherwise stated. (a) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at cost less any accumulated depreciation and any accumulated impairment losses. Cost includes expenditure that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the cost of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials and direct labour. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
The Commission plans to apply the rest of the abovementioned FRSs / Interpretation from the annual period beginning 1 January 2010. FRS 4, FRS 8 and IC Interpretation 10 are not applicable to the Commission, hence no further disclosure is warranted. The impact of applying FRS 7, FRS 139 and IC Interpretation 9 on the financial statements upon first adoption as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemptions given in the respective FRSs. The initial application of the above standards (and its consequential amendments) and interpretation is not expected to have any material impact on the financial statements of the Commission.
162
2.
(a)
163
2. Significant Accounting Policies (continued)
(f) Impairment of assets The carrying amounts of assets except for financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash generating units). An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocated to the assets in the unit (groups of units) on a pro-rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised. (g) Tax expense Tax expense is in respect of tax on interest income received during the financial year. All other income is exempted from taxation as the Commission is tax exempt under Section 127(3) of the Income Tax, 1967. Tax expense comprises current and deferred tax. Tax expense is recognised in the income statements except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax liability is recognised for all taxable temporary differences.

Significant Accounting Policies (continued)
Property, plant and equipment (continued) (i) Recognition and measurement (continued) Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income or other operating expenses respectively in the income statements. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Commission and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The cost of the day-to-day servicing of property, plant and equipment are recognised in the income statements as incurred.
(iii) Depreciation Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as follows: Office and communications equipment 6 7 years Computer equipment 3 5 years Furniture and fittings 6 7 years Motor vehicles 5 years Building 50 years Depreciation methods, useful lives and residual values are reassessed at the balance sheet date. (b) Fees and other receivables Fees and other receivables are stated at cost less allowance for doubtful debts. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances and deposits with banks. Provisions A provision is recognised when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation (legal or constructive) as a result of a past event and a reliable estimate can be made of the amount. Liabilities Other payables are stated at cost.
(c)
(d)
(e)
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
164
2.
(h)
165
3. Property, Plants and Equipment Office and Communications Computer Equipment Equipment RM000 RM000
Cost At 1 January 2007 Additions At 31 December 2007/ 1 January 2008 Additions Disposals Reclassification At 31 December 2008 Accumulated depreciation At 1 January 2007 Charge for the year At 31 December 2007/ 1 January 2008 Charge for the year Disposals At 31 December 2008 Net book value At 31 December 2006 At 31 December 2007/ 1 January 2008 At 31 December 2008 4,506 465 46,672 1,456

Significant Accounting Policies (continued)
Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currency of the Commission at exchange rates at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statement. (i) Recognition of income i) Operating licence fees Operating licence fees are recognised on the following basis: a) a minimum RM50,000 or a maximum licence fees of 0.50% of Gross Annual Turnover is recognised on an accrual basis upon the anniversary of the licence and annually thereafter. b) the difference between the minimum and the maximum refers to maximum rebates of 0.35% given to licencees only upon meeting the criteria set and approved by the Commission.
Furniture and Fittings RM000

2,728 239
Motor Vehicles RM000

4,361 1,275
Freehold Land RM000

10,873 -
Building RM000
36,729 -
Capital Work-InProgress RM000

26,678 23,974
Total RM000
132,547 27,409
4,971 355 5,326
48,128 49,493 56,118 153,739
2,967 291 3,258
5,636 1,133 (444) 6,325
10,873 10,873
36,729 36,729
50,652 5,676 (56,118) 210
159,956 56,948 (444) 216,460
ii)
Spectrum fees Spectrum fees consists of apparatus and spectrum assignment fees. Renewal notifications are sent to the assignment holders before the expiry of the assignment. Upon receiving the notification, the assignment holders are required to make a fresh application for new assignment. Spectrum fees are recognised on accrual basis over the licencee periods granted. Interest income Interest income is recognised in the income and expenditure statement as it accrues, taking into account the effective yield on the asset.
1,816 668
39,008 7,282
938 418
2,454 796
1,714 735
45,930 9,899
iii)
(j)
Employee benefits Short-term employee benefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognised for the amount expected to be paid under short-term cash bonus if the Commission has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The Commissions contributions to statutory pension funds are charged to the income statement in the year to which they relate. Once the contributions have been paid, the Commission has no further payment obligations.
2,484 728 3,212
46,290 22,864 69,154
1,356 458 1,814
3,250 757 (444) 3,563
2,449 735 3,184
55,829 25,542 (444) 80,927
2,690
7,664
1,790
1,907
10,873
35,015
26,678
86,617
2,487 2,114
1,838 84,585
1,611 1,444
2,386 2,762
10,873 10,873
34,280 33,545
50,652 210
104,127 135,533
166
4.
167
2008 RM000
8,684 (5,933) 2,751 25,328 154 387 76 310 29,006

Fees and Other Receivables
Fees receivables Less: Allowance for doubtful debts
2007 RM000
22,803 (4,816) 17,987 21,298 523 500 58 203 40,569
7.
Deferred Income
Current Spectrum fees 3G spectrum assignment fees Apparatus assignment fees Operating licence fees Class licence fees Individual licence fees
2008 RM000
21,506 47,540
2007 RM000
19,188 39,332
Interest income receivables Advances to staff Other deposits Other receivables Staff loans
589 100 69,735
58,520
5.
Fees and Other Receivables

Deposits placed with licenced banks Cash and bank balances
2008 RM000
1,172,261 1,017 1,173,278
2007 RM000
989,558 1,110 990,668
Non-current Spectrum fees 3G spectrum assignment fees Apparatus assignment fees
128,794 516 129,310
128,249 652 128,901
Deferred income relates to the amount of unearned income from advance payment by licencees for future financial periods.
6.
Accumulated Fund
Initial fund Accumulated surplus brought forward Payments made to the consolidated trust fund Contribution to the Sarawak Rural Broadband Initiative Project Refunds to individual licencee
2008 RM000
60,000 856,565 (45,000) (10,000) 801,565 229,799 1,091,364
2007 RM000
60,000 765,337 (115,000) (289) 650,048 206,517 916,565
8.
Other Payables and Accrued Expense

Other payables Accrued expenses
2008 RM000
8,588 37,074 45,662
2007 RM000
8,047 22,073 30,120
Included in accrued expenses is an amount of RM7,780,000 (2007 - RM7,780,000) of licensing fees which is refundable to Telekom Malaysia Berhad.
9.

Provision for TV Receiver Licences Refund

Provision for TV receiver licences refund represents provision for amount refundable to TV licence holders in view of the abolishment of television licences with effect from 1 April 1999 as a result of the repeal of the Broadcasting Act 1988.
Excess of income over expenditure after tax Accumulated surplus carried forward The initial fund has been utilised to finance the working capital of the Commission.
10. Federal Consolidated Fund

Compounds paid by offenders to the Commission due to non-compliance with the Communications and Multimedia Act 1998 or its regulations and is payable to the Federal Consolidated Fund.
168
169
2008 RM000
10,159 64 10,223

11. Tax Expense
Income tax expense - current year - prior year
2007 RM000
9,048 42 9,090
14. Related Parties

Identity of related parties For the purpose of these financial statements, parties are considered to be related to the Commission if the Commission has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Commission and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Commission, either directly or indirectly. The key management personnel includes all the Members of the Commission, and certain members of senior management of the Commission. The Commission has a related party relationship with its Members and key management personnel.
Reconciliation of tax expense Excess of income over expenditure before taxation Tax at statutory tax rate of 26% (2007: 27%) Tax exempt income Non-deductible expenses
240,022 62,406 (78,409) 26,162 10,159 64 10,223
215,607 58,214 (68,917) 19,751 9,048 42 9,090
Transactions with key management personnel There are no other transactions with key management personnel other than key management personnel compensation as disclosed in Note 12. Other related party transactions There are no significant related party transactions other than those disclosed in Note 12 in the financial statements.
Under provision in prior year Tax expense
15. Financial Instruments

Financial risk management objectives and policies The Commissions activities are exposed to a variety of financial risks, including interest rate risk, liquidity and cash flow risks and credit risk. The Commissions overall financial risk management objective is to ascertain, to address and to control the risks to which the Company is exposed so as to minimise the financial downside risks at reasonable costs. The Commission Members are primarily responsible for the management of these risks and to formulate policies and procedures for the management thereof. The management regularly reviews and assesses the financial risk management policies to ensure that the policy guidelines are adhered to. Interest rate risk The Commission is exposed to interest rate risk on fixed deposits. The Commission does not transact in any interest rate swaps. Liquidity risk The Commission monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Commissions operation and to mitigate the effects of fluctuation in cash flows. Credit risk Credit risk is the potential exposure of the Commission to losses in the event of non-repayment of licence fees from licencees.
The Commission has been granted tax exemption from Year of Assessment 2000 onwards by the Ministry of Finance under Section 127(3)(b) of the Income Tax Act, 1967. The current tax expense is in respect of interest income not exempted from tax.
12. Key Management Personnel Compensation

The key management personnel compensation is as follows:
2008 RM000
3,507
2007 RM000
2,585
Commission and Executive Committee members remuneration
13. Capital Commitment

Property, plant and equipment Authorised but not contracted for Contracted but not provided for and payables
2008 RM000
15,000 15,000
2007 RM000
10,000 51,966 61,966
170

15. Financial Instruments (continued)
Credit risk (continued) At the balance sheet date, there was no significant concentration of credit risk. The maximum exposure to credit risk for the Commission is represented by the carrying amount of each financial asset. The following table shows information about the Commissions exposure to interest rate risk. Effective interest rates and repricing analysis In respect of interest-earning financial assets, the following table indicates their average effective interest rates at the balance sheet date and the periods in which they mature, or if earlier, reprice.
Effective Interest Rate %

Financial assets Cash and cash equivalents Fair values Recognised financial instruments 3.39
2008 Within 1 Year RM000 1-5 Years RM000
Effective Interest Rate %
2007 Within 1 Year RM000 1-5 Years RM000
1,154,378
18,900
3.37
990,668
The carrying amounts of cash and cash equivalents, fees and other receivables and payables approximate fair values due to the relatively short-term nature of these financial instruments.

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Suruhanjaya Komunikasi dan Multimedia Malaysia,Off Persiaran Multimedia, 63000 Cyberjaya, Selangor Tel: 6 03 86 88 80 00 | Fax: 6 03 86 88 10 00 E-mail: [email protected].

my | Web: www. skmm.gov.my | 1-800-888-030

000 Table of Contents

01 Speeding Up the Growth of ICT

06 Channeling Equal Access

07 Enhancing ICT Ethics

Integrity & Excellence

Categorisation Market Supervision Services Accessibility Implementation of WiMAX Services

Through Global Partnerships

10 Delivering Better Performance

11 Building 1Malaysia Through

04 Expanding Digital Reach

and Good Governance

002 National Policy Objectives

10. To ensure information security and network reliability and integrity.

004 Clients Charter

006 Chairmans Message

Datuk Dr. Halim Shafie

SKMM Annual RePort 2008

The Year 2008 in Review Organisational Transformation

Postal and Courier Services

Strengthening Corporate Governance

SKMM Annual RePort 2008

Broadband to the Nation

Content Development as a Catalyst for Broadband Take-up

Enhancing Organisational Efficiency

SKMM Annual RePort 2008

Focus on the Consumer

SKMM Annual RePort 2008

Cybersecurity in the Age of Connectivity

Choice for the Consumer, Competition for the Providers

Fast Forward 2009

SKMM Annual RePort 2008

SKMM Annual RePort 2008

Datuk Dr. Halim Shafie

Tan Sri Datuk C. Rajandram

SKMM Annual RePort 2008

Dato Dr. Halim bin Man

Datuk Dr. Abdul Samad bin Haji Alias

SKMM Annual RePort 2008

Dato Dr. Gan Khuan Poh

Encik Mohamed Sharil bin Mohamed Tarmizi

SKMM Annual RePort 2008

Datuk Idris Abdullah

Datuk Mohd. Zain Mohd Dom

SKMM Annual RePort 2008

026 Senior Directors

Dato Jailani Johari

Senior Director, Research & Planning

Toh Swee Hoe

Mohd Aris Bernawi

Senior Director, Resource Assignment & Management

SKMM Annual RePort 2008

Senior Director, Content, Consumer, Network Security and Postal

Senior Director, Management Services

Mohd Ali Hanafiah

Senior Director, Technology, Standards and Network

Tengku Zaib Raja Ahmad

Senior Director, Strategic Information System