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The
National Telecommunication Policy ( 1994 - 2020 )
PREFACE
This document outlines the objectives, strategies and features of the National Telecommunications Policy (NTP) for the 1994 - 2020 periods. This policy was formulated to ensure that the growth of telecommunications services and its use of technology support national development, in line with national aspirations.
The
telecommunications sector is expanding rapidly with the introduction of the
latest services and equipment. This development has become a catalyst for the
growth of the nation’s commercial and industrial sectors. The integration of
the telecommunications and computer industries also resulted in the rapid
growth of sophisticated technology which ushers in a new Information Technology-based
century. In addition, the telecommunications sector as an industry in its own
right has gone through rapid growth too, and contributed much to the nation's
economic development. The formulation of the NTP is important because it
provides guidelines for the development of the telecommunications sector in
Malaysia as it faces future challenges and supports the attainment of the
objectives of Vision 2020.
BACKGROUND
The telephone and telegraphic services were specifically introduced after the
First World War to help run the government’s administrative system. Later it
expanded its role to the business and industrial sectors and later for public
use. Starting from a simple network, this sector has developed to become a
sophisticated telecommunications network, using optical fibre cable,
microwave and satellite systems to link rural and urban areas throughout the
nation and with the whole world.
The growth rate in the use of telecommunications facilities has increased
tremendously, especially in the increasing number of telephone subscribers.
At the end of the Second Malaysian Plan (1970 - 1975), there were 169,600
subscribers. This figure increased to 1.58 million subscribers at the end of
the Fifth Malaysian Plan (1986 -1990). The number of telephones for every 100
persons increased from 6.5 in 1985 to 12 in 1993.
Besides the growing number of customers who make use of telecommunications
facilities, other services also experienced rapid growth such as the mobile
telecommunication radio, trunk radio and paging system as well as data
services which include switching services, datel, telefax and other services.
The introduction of he latest value-added and downstream telecommunication
services spur further growth in the nation's manufacturing and economic
service sector.
Development of the public telecommunications network is not only confined to the urban areas. Efforts to expand public telecommunications network to the rural areas are actively carried out. The total number of rural telephones in 1990 was 190,000 and this is expected to increase to 351,000 in 1995, a 11.5% growth. The rural telephone line penetration rate is expected to increase from 1.8 telephones for every 100 persons in 1990 to 3.1 telephones for every 100 persons in 1995. The expansion and development of telecommunications services are important for the growth of the industrial and service sectors. To modernize and to increase telecommunications service growth rate, a competitive element was introduced in stages. The first step involved the incorporation of Telekom Malaysia in 1987 as a government-owned company. Later, new companies were licensed to provide certain services such as mobile cellular telephones, pagers, trunked radio, two-way radio system and other value-added services. The Energy, Telecommunications and Posts Ministry is responsible for the formulation of policies and the planning of future long-term course of the telecommunications sector, while the Malaysian Telecommunications Department (JTM) is responsible for the supervision of the telecommunications sector. The JTM also encourages competition and ensures an orderly and efficient development or the telecommunications industry. These are in addition to the work done in licensing and enforcement.
THE NATIONAL TELECOMMUNICATION POLICY (1994 -
2020)
The NTP will function as a catalyst towards the growth and development of the telecommunications sector in its efforts to become a modern, sophisticated and dynamic sector.
The NTP will formulate general outlines for the development of the
telecommunications sector not only at national but also at international
levels. This will serve as guidelines to all parties involved including
providers, investors and the Government particularly with regards to the
requirements of investment, human resource development, network and service
facilities, absorption of new technology and research and development.
At the national level, the NTP will coordinate the emergence of a competitive
atmosphere in an orderly manner to ensure the optimum use of the country
resources. For the domestic service, the NTP will outline the creation of
quality, high technology, cost effective and sophisticated telecommunications
services at par with that found in developed countries.
In the international arena, the NTP will ensure that Malaysia is regarded as
a competitive telecommunications service supplier and a premier market leader
known throughout the Asia Pacific region and the world.
THE MISSION AND OBJECTIVES OF THE NATIONAL
TELECOMMUNICATIONS POLICY
Mission Statement
The NTP will be the main catalyst towards the creation of an information-rich and intelligent nation.
The objectives of the NTP are divided into macro and micro objectives.
Macro Objective
The macro objectives supports the National Development Policy is aims of national unity. And integration by encouraging interaction between the races and regions through telecommunication facilities and services. In addition, the NTP also helps to realise the objectives of Vision 2020 in creating an educated and information-rich society through the application of modern and sophisticated telecommunications network. The dissemination and expansion of information technology will produce a society capable of contributing towards the development of new technology to enhance the country's economic and industrial growth. Besides information technology, the application of all types of telecommunications technology in all sectors of the nation's economy will be enhanced.
Micro Objective
The micro objectives are for the: o Provision of modern, sophisticated and quality communications services at a reasonable cost. o Ensuring that telephone services are expanded to the rural and urban population at a reasonable cost. o Ensuring that the telecommunications infrastructure is adequate and effective in supporting the country's industrialization efforts. o Encouraging the growth of value-added services. o Ensuring that human resource development is in tandem with the needs of the telecommunications sector. o Ensuring that local manufacturing industries for the manufacturing of telecommunications equipment continue to expand and grow. o Ensuring the use of local products by the telecommunications sector. o Encouraging research and development (R&D) to facilitate the absorption of new technology and to upgrade telecommunications facilities and services. o Promoting better ties between nations towards making Malaysia and international telecommunications hub. o Encouraging the healthy participation of telecommunications companies in the international market and investment in other countries in the fields of telecommunications. o Ensuring that radio telecommunications spectrum resource management is administered in an effective and fair manner. o Encouraging the active participation of bumiputera entrepreneurs in the development of all sectors of telecommunications, in line with the government's policy to create a Bumiputera Business and Industrial society.
STRATEGIES
The close relationship and cooperation between the Government and private sector are critical to the development of the telecommunications sector and the realisation of the objectives of the National Development Policy. Therefore, the NTP's strategies are based on the Government-Private sector synergy, working together to create a modern, sophisticated, efficient and productive telecommunications sector in making available services to every segment of society at a reasonable cost. The following strategies are identified to help attain the objectives of the NTP.
Expansion of Services in a Systematic and
Comprehensive Manner
The target of the telephone lines penetration rate for the nation by the year 2020 is fixed at 50 telephones for every 100 persons. The rate is fixed at 25 telephones for every 100 persons for the rural areas. This target is to be achieved through an increase in basic facilities, an expansion of existing telecommunications network and provision for new ones.
The Government will license certain companies if necessary to supply certain
infrastructure and services in accordance with the long term plans of the
telecommunications sector. An integrated and reliable transmission network
that covers the whole nation and capable of providing voice, video, data and
imaging services will be expanded .
The Government will revise the rates and tariffs for all telecommunications
services from time to time so that the cost of the services is reasonable and
at par with those charged by neighbouring countries and the international
market.
In the long term, the telecommunications network will expand to include fibre
optic, microwave network and satellite systems. In addition, competition in
the supply of telecommunications network infra-structure will be encouraged
in an expanding market that attracts a growing number of users.
The realisation of social objectives in particular to increase and upgrade
rural telecommunications facilities will not be neglected, and indeed all
licensed telecommunications companies especially the carrier-network provider
are responsible to achieve this end.
Development of a Strategic and Export-Oriented
Manufacturing Industry
To strengthen the nation's economic growth and spur technological transfer, local manufacturing and assembly of telecommunications equipment are encouraged. Besides ensuring that technological transfer is continuous and to provide more employment opportunities, the local telecommunications industry is expected to gear itself for the export market in a large scale.
To develop the local industry, the use of locally produced equipment is
encouraged through licensing regulations for all providers in the
telecommunications sector. In addition to that, fiscal incentives are also
provided to encourage the growth of the local telecommunications industry.
Encouraging Competitiveness
The NTP's main approach is to encourage a healthy and orderly competition. The telecommunications sector has been opened to competition where basic infrastructure and telecommunications services are operated by private enterprises. The main objective of the telecommunications sector is to encourage competition in the telecommunications sector in order to achieve efficiency and to provide excellent and quality service. This is in addition to the provision of services that will satisfy all users and people, in line with the National Privatization Policy.
o Encouraging competitiveness in the telecommunications sector will be
carried out in stages. It will start with value-added services followed by
the provision of infrastructure and other services.
o Competition in this sector will take into account the existence of similiar
facilities
that are not profitable and problems resulting from different technologies. o However, competition will not only be encouraged between systems (technology) but also among providers using the same system.
o This element of competitiveness is encouraged at the domestic and
international levels by taking into account the nation's commitment in
international agreements such as GATT and others.
o Domestically competition in the te1ecommunications sector is implemented by
taking into account the development of a new system/infrastructure that
emerges from time to time in keeping with the rise in demand.
o Even though on the Whole the NTP encourages competition it does not
necessarily mean creating separate systems.
o Even though competition is encouraged the Government is empowered to
determine the number of competitors that are economically viable for certain
telecommunications system/services. The NTP will provide a healthy
environment and equal opportunities to all competitors.
Research and Development To Enhance The
Application of Technology
Those involved in telecommunication are encouraged to carry out research and
development (R & D) to support local industrial growth and to speed u
transfer of technology. The requirement to carry out R & D will be part
of the conditions under which licences will be issued. It is stated that at
least 1% of the annual expenditure should be allocated for R & D
purposes. Incentives for R & D activities will also be provided. R &
D in certain telecommunications fields should be initiated.
Among
the important fields identified are information technology and the
development of information technology which possesses tremendous potential
for expansion through telecommunications systems. R & D should also be
made in the fields of cellular technology satellite fibre optics microwave
and others.
To enhance the capacity to face the challenges of Vision: 2020 the NTP
proposes the setting up of a national research and development institute in
he field of telecommunications.
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