MCMC says Malaysians prefer slower broadband speed, supporting Minister’s comment

The Malaysian Communications and Multimedia Commission (MCMC) is saying Malaysians prefer slower broadband packages.

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On Monday, Communications and Multimedia Minister Datuk Seri Dr Salleh Said Keruak said that most Malaysians choose to pay less for slower internet speeds instead of spending more on fast connections.

MCMC said: “While there are many high speed broadband packages available currently, subscribers still appear to prefer lower speed packages. Based on the subscriber demographics as at August 2015 for the main fixed broadband service provider, 71% of Streamyx customers subscribe to broadband packages at speeds of 1Mbps or less.”

“There could be many reasons for this, and it is not necessarily an indication that Malaysians prefer slow broadband. The lack of compelling content and online applications may be a contributing factor. It is therefore also equally important to ensure widespread availability of digital services in various areas such as education, health and online payment platforms to drive demand for high speed broadband. With more demand, service providers will have commercial reasons to improve their infrastructure and lower their prices.”

Many Malaysians disagreed on the comment made by the Communication Minister. Most people are saying that Malaysians pay less for slower Internet speeds because they can’t afford the higher Internet speed packages.

MalaysianWireless understands that broadband is defined with a minimum speed of 384Kbps in Malaysia. In comparison, in the US, the Federal Communications Commission (FCC) defines broadband with a minimum speed of “25 megabits per second (Mbit/s) downloads and 3 Mbit/s for uploads”.

Improving broadband coverage, affordability and speed for Malaysia is a priority for the Malaysian Communications and Multimedia Commission (MCMC), it said in a statement. MCMC claims that it understands the importance for Malaysians to have access to broadband at the right speed and price points.

According to MCMC, as of Quarter 1 of 2015, 3G coverage for the country was at 86% of populated areas, while for 4G, the coverage was at 38.3%. Telekom Malaysia’s Streamyx is available to 78% of households in Malaysia while broadband over fibre covers 35% of households.

“Service offerings in the fixed broadband market are diverse and consumers have a wide range of services to choose from. Packages range from 384kbps up to 100Mbps with prices starting from RM38. With more demand for data services, prices for broadband are expected to reduce over time. MCMC is also undertaking measures with the cooperation of industry to make high speed broadband more affordable. For example, the latest package introduced into the market offers speeds of 30Mbps (plus 8Mbps for Internet TV) at the price of RM199, which translates to RM5.25 per Mbps.” it added.

Currently, the standard 1Mbps package from Telekom Malaysia is priced at RM116.60 with GST.

On MCMC’s part, it said focus will be placed on ensuring that Malaysians have access to broadband at the right speed and price points. In line with targets set out in the 11th Malaysia Plan for ICT infrastructure, MCMC expects to achieve 95% broadband coverage in populated areas and improved speeds (100 Mbps in urban areas and 50% of suburban areas having 20 Mbps) by 2020. Approximately RM20 billion is expected to be invested by both industry and MCMC in the next few years to achieve these goals.

[Source]– MCMC Facebook

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy
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