On 20 December 2017, the Malaysian Communications and Multimedia Commission (MCMC) Chairman at that time signed a document containing details of Mandatory Standard on Access Pricing (MSAP). MSAP, which came into effect on Jan 1, 2018 but only implemented on June 8, 2018 by the new Malaysia Government, required Malaysian Telcos to submit access agreements that will result in the reduction in fixed broadband prices to MCMC.
With the new MSAP in effect, it resulted into cheaper fixed broadband packages from Telekom Malaysia (as low as RM79/month), Maxis, TIME dotcom and Celcom Axiata. The current MSAP are effective until 2020 which means broadband pricing are expected to go down even further next year.
MCMC said it recorded more than 30% reduction for entry-level high speed broadband packages which has surpassed its initial target of 25% reduction originally by December 2018. At the same time, telecommunications companies (telcos) have also offered higher speeds with the same or lower price.
Early this month, the Commission revealed that there are now over 1.2 million fixed broadband subscribers in the country who are enjoying broadband speeds over 100Mbps, compared to just 150k subscriptions in 2017. As of 2018, there were 39.4 million broadband subscriptions in the country including mobile.
“The surge is mainly due to the implementation of the Mandatory Standard on Access Pricing (MSAP), which resulted in lower wholesale network pricing. This allowed the internet service providers in the industry to lower their retail prices for high-speed broadband services while at the same time increase the speed of connectivity.”
MSAP covered pricing related to all the following:
- Fixed Network Origination Service
- Fixed Network Termination Service
- Mobile Network Origination Service
- Mobile Network Termination Service
- Interconnect Link Service
- Wholesale Local Leased Circuit Service
- Domestic Connectivity to International Services
- Digital Terrestrial Broadcasting Multiplexing Service
- Duct and Manhole Access
- Layer 2 HSBB Network Service with Quality of Service
- Trunk Transmission Service
- Layer 3 HSBB Network Service
- End-to-End Transmission Service
Here’s the full document issued by MCMC regarding MSAP on 20 December 2017.