Rais, why do we need more mobile players??

Why do we(Malaysians) get “smart” Communications Minister all the time?

This is his latest statements, taken from Bernama:

The government wants to see more players in mobile communication, particularly the mobile broadband industry, Information Communication and Culture Minister Datuk Seri Dr Rais Yatim said.

He urged the Malaysian Communications and Multimedia Commission (MCMC) to give priority to licence application by small and medium enterprises (SME) wanting to venture into mobile communication.

Let’s look at what we have NOW. We have three 2G operators, four 3G operators, five MVNOs(including Baraka), four WiMAX operators and a bunch of other wireless ISPs including Izzinet. Out of all these, THIS IS A SMALL MARKET! Malaysia has a cellular phone penetration of 106 percent, that’s more than 29 million of mobile numbers.
I am asking this AGAIN, why do we need more mobile operators?

Dear Minister, for your knowledge Malaysians need more applications and content ON THE PHONE. Educate them on the benefit of mobile services and how to use applications on the phone. For this to happen, the telcos need to open up their network, let CONTENT DEVELOPERS meet the MOBILE USERS, we don’t need “middle man” (mobile operators).

Unless the Government needs another mobile player so they can tax them and charge them a high fee for the licenses, I don’t see a need for another mobile player in the market.

Related topics on MalaysianWireless:

Rizman

by having many player .. they will compete in offering lower prices.. look at indonesia that have 10 mobile operators … almost every 3 month prices changes…we the customers will have the benefit.
Rizman

by having many player .. they will compete in offering lower prices.. look at indonesia that have 10 mobile operators … almost every 3 month prices changes…

we the customers will have the benefit.
K. Kugan

Having too many players is bad for the industry.They will be targeting the same bunch of customers and eventually some may not survive.Example: 3G operators target Streamyx users, P1 WiMAX targets 3G and Stremyx users. And this NEW player is going to target all of the above?Keep in mind that lower prices does not give you a better service. To build a complete mobile network, it takes years. Even the 3G operators in this country has a "paralysed" network, no perfect coverage.We need a better regulation so Malaysians will enjoy a better service, not more players when we already have enough options available.
K. Kugan

Having too many players is bad for the industry.

They will be targeting the same bunch of customers and eventually some may not survive.

Example: 3G operators target Streamyx users, P1 WiMAX targets 3G and Stremyx users. And this NEW player is going to target all of the above?

Keep in mind that lower prices does not give you a better service. To build a complete mobile network, it takes years. Even the 3G operators in this country has a "paralysed" network, no perfect coverage.

We need a better regulation so Malaysians will enjoy a better service, not more players when we already have enough options available.
Beautiful Tonight

the only issue is OUR SMART RAIS YATIM should implement issuing of licenses based on geographical. Like taiwan and indonesia, one operator focus on East Malaysia and the other focus on North Peninsular and etc.. Then implement local roaming and make services better..but our Mr Rais know nothing about it.. Cry for u, the orphanage minister.
Beautiful Tonight

the only issue is OUR SMART RAIS YATIM should implement issuing of licenses based on geographical. Like taiwan and indonesia, one operator focus on East Malaysia and the other focus on North Peninsular and etc.. Then implement local roaming and make services better..

but our Mr Rais know nothing about it.. Cry for u, the orphanage minister.
mafiz

Yes. Interworking between telcos is more important. Reducing prices will only erode the industry's value in the long term. Customers might be happy in the short run but in the long run, with lesser revenue, it will cripple telcos capability to re-invest in new technology and thus, the country could loose its competitivenes.The regulator could be more consumer centric and look at content and services and being more less telco/infra centric. Generate demand for content by working with other ministries and industries (not just telco)see where they're heading too. Be a facilitator between telcos, ministries and industries to create a win win win scenario. It's time to be demand driven, not supply. True there's many players in Indonesia, but the market there is far from being saturated. With a population of 200million people, if they charge $1 per customer per month, that's $200million revenue potentially. They're cutting prices like mad, but new customers ensures growth. When market is saturated, telco businesses becomes unsustainable if they continously engage in price war.
mafiz

Yes. Interworking between telcos is more important. Reducing prices will only erode the industry's value in the long term. Customers might be happy in the short run but in the long run, with lesser revenue, it will cripple telcos capability to re-invest in new technology and thus, the country could loose its competitivenes.

The regulator could be more consumer centric and look at content and services and being more less telco/infra centric. Generate demand for content by working with other ministries and industries (not just telco)see where they're heading too. Be a facilitator between telcos, ministries and industries to create a win win win scenario. It's time to be demand driven, not supply.

True there's many players in Indonesia, but the market there is far from being saturated. With a population of 200million people, if they charge $1 per customer per month, that's $200million revenue potentially. They're cutting prices like mad, but new customers ensures growth. When market is saturated, telco businesses becomes unsustainable if they continously engage in price war.
Epool86

@rizman, Yes that is the good part of having many players. But the bad part is price war will resulting less profit, hence lower investment in upgrading their service quality/coverage. Everyone keep cutting down their rates.You cannot compare with Indonesia, they have a very huge market, and very large area to cover. Malaysia is a small country, so i think the current players is enough.My opinion, yes we need many players so they can compete each other (to avoid monopoly by from one or two company only).. But we do have many players now.. then we don't any new players anymore. By the way, is it he mean mobile player in general or broadband service provider?
Epool86

@rizman,

Yes that is the good part of having many players. But the bad part is price war will resulting less profit, hence lower investment in upgrading their service quality/coverage. Everyone keep cutting down their rates.

You cannot compare with Indonesia, they have a very huge market, and very large area to cover. Malaysia is a small country, so i think the current players is enough.

My opinion, yes we need many players so they can compete each other (to avoid monopoly by from one or two company only)..

But we do have many players now.. then we don't any new players anymore. By the way, is it he mean mobile player in general or broadband service provider?

Feb201024

Kugan

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