MALAYSIAN TELECOM INDUSTRY IN THE EYES OF SMALL PLAYERS

1. In the last five years or so, generally Telecommunication Industry in Malaysia is dominated by news on Telecom operators such as Telekom Malaysia on its business re-structuring and the formation of TMI, TM Broadband FTTH Project, Privatisation of MAXIS from the Stock Exchange, 3G License-Share Swop between Digi and Time Dot Com, Issuance of WiMax Licenses using non-standard 2.3Ghz spectrum and CELCOM re-branding and so on. All these news contribute to exciting public debate, discussion and opinions. They all have pro's and contra's to all these exciting development in telecommunication industry in Malaysia.
2. While the war on Mobile Cellular market intensifed as Mobile Operators are pushing for subscriber growth, trying hard to retain customers and reduced churns, they are also try to find ways to improved dropping ARPU by introducing new contents services. All these developments are actually benefits subscribers as a whole.
3. Fixed Line Operators like TM and TIME Dot Com have to find new niches in order to keep the business remain relevant and continue to stay afloat for many decades to come. They have to leverage whatever assets they have technically,financially and politically tocreate new business that only they do it. Therefore, I felt, their decision to become main provider of High Speed FTTH is a very wise decision and make a lot of business sense as the demand for high speed broadband conncetion with minimum 100 mbps is in the increasing trend. I believe on TM and/or TIME can deliver this service in view of their experience in fiexd line delivery and also the amount of outside plant infrastructure they already had that no one can match them. It is close to impossible for any new players to be successful even they havethe money to do it.
4. All operators are required to continually expanding their networks and investing on new technology and new system in order to remain efficient and competitive. They have to spend hundreds of million dollars a year on CAPEX to buy new equipment and build new infrastructure. So many tenders have been called and so many projects has been awarded. However, sadly to say, the big chunk of these expenditure are for the procurement of technological equipment from foreign suppliers and manufacturers. The trend now seems to incline towards CHINA MADE EQUIPMENT. Perhaps, China companies are offering the most competive bid in any tenders. So, they deserve to win over their counterparts for the West.
5. It is also a trend these days for Telco operators to call international tender and buy the equipment directly from foreign suppliers leaving the local Malaysian companies only to provide Engineeering Services like installation works at daily worker rates. The contract price is so ridiculously low that companies with proper organization and set up are unable to compete with freelance daily installers who more often than not are not able to guaranty the workmanship of the jobs. Imagine, to install a Microwave Radio Equipment with 6 Foot Antenna on Towers, contractor is only being paid around RM 2,800 -3,000 per hop (two sides). To me, it is slavery and unfair.
6. Therefore, despite of billion of dollars being spent collectively by Malaysian Telco' and Celco's every year, the big chunk of the money is flowing out of the country to foreign suppliers banks and what left a very small portion of it for Malaysian companies and contractors to scramble. Think about it. We are enroute to become developed nation by 2020 but our telco's and celco's are not sensitive at all towards the wellbeing and the development of local suppliers and contractors. The RM 11 Billion FTTH Project by TM is so aspiring but I bet 80% goes to China Company and the remaining 20% may be for local contractor nationwide to scramble. Good Luck Malaysia.