28the National Telecommunication Policy (1994 - 2020)

8/12/2019 28the National Telecommunication Policy (1994 - 2020)

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THENATIONALTELECOMMUNICATIONPOLICY(1994 2020)

PREFACE

1.Thisdocumentoutlinestheobjectives,strategiesandfeaturesoftheNational

TelecommunicationsPolicy(NTP)forthe1994 2020period.Thispolicywasformulatedtoensure

thatthegrowthoftelecommunicationsservicesanditsuseoftechnologysupportnational

development,inlinewithnationalaspirations.

2.Thetelecommunicationssectorisexpandingrapidlywiththeintroductionofthelatestservices

andequipment.Thisdevelopmenthasbecomeacatalystforthegrowthofthenation'scommercial

andindustrialsectors.Theintegrationofthetelecommunicationsandcomputerindustriesalso

resultedintherapidgrowthofsophisticatedtechnologywhichushersinanewInformation

Technologybased

century.

In

addition,

the

telecommunications

sector

as

an

industry

in

its

own

right

hasgonethroughrapidgrowthtoo,andcontributedmuchtothenation'seconomicdevelopment.

TheformulationoftheNTPisimportantbecauseitprovidesguidelinesforthedevelopmentofthe

telecommunicationssectorinMalaysiaasitfacesfuturechallengesandsupportstheattainmentof

theobjectivesofVision2020.

BACKGROUND

3.ThetelephoneandtelegraphicserviceswerespecificallyintroducedaftertheFirstWorldWarto

helprun

the

government's

administrative

system.

Later

it

expanded

its

role

to

the

business

and

industrialsectorsandlaterforpublicuse.Startingfromasimplenetwork,thissectorhasdeveloped

tobecomeasophisticatedtelecommunicationsnetwork,usingopticalfibercable,microwaveand

satellitesystemstolinkruralandurbanareasthroughoutthenationandwiththewholeworld.

4.Thegrowthrateintheuseoftelecommunicationsfacilitieshasincreasedtremendously,especially

intheincreasingnumberoftelephonesubscribers.AttheendoftheSecondMalaysianPlan(1970

1975),therewere169,600subscribers.Thisfigureincreasedto1.58millionsubscribersattheendof

theFifthMalaysianPlan(19861990).Thenumberoftelephonesforevery100personsincreased

from6.5in1985to12in1993.

5.Besidesthegrowingnumberofcustomerswhomakeuseoftelecommunicationsfacilities,other

servicesalsoexperiencedrapidgrowthsuchasthemobiletelecommunicationradio,trunkradioand

pagingsystemaswellasdataserviceswhichincludeswitchingservices,datel,telefaxandother

services.Theintroductionofhelatestvalueaddedanddownstreamtelecommunicationservices

spurfurthergrowthinthenation'smanufacturingandeconomicservicesector.

6.Developmentofthepublictelecommunicationsnetworkisnotonlyconfinedtotheurbanareas.

Effortstoexpandpublictelecommunicationsnetworktotheruralareasareactivelycarriedout.The

totalnumber

of

rural

telephones

in

1990

was

190,000

and

this

is

expected

to

increase

to

351,000

in

1995,a11.5%growth.Theruraltelephonelinepenetrationrateisexpectedtoincreasefrom1.8


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telephonesforevery100personsin1990to3.1telephonesforevery100personsin1995.

7.Theexpansionanddevelopmentoftelecommunicationsservicesareimportantforthegrowthof

theindustrialandservicesectors.Tomoderniseandtoincreasetelecommunicationsservicegrowth

rate,acompetitiveelementwasintroducedinstages.Thefirststepinvolvedtheincorporationof

TelekomMalaysiain1987asagovernmentownedcompany.Later,newcompanieswerelicensedto

providecertainservicessuchasmobilecellulartelephones,pagers,trunkedradio,twowayradio

systemandothervalueaddedservices.

8.TheEnergy,TelecommunicationsandPostsMinistryisresponsiblefortheformulationofpolicies

andtheplanningoffuturelongtermcourseofthetelecommunicationssector,whiletheMalaysian

TelecommunicationsDepartment(JTM)isresponsibleforthesupervisionofthetelecommunications

sector.TheJTMalsoencouragescompetitionandensuresanorderlyandefficientdevelopmentor

thetelecommunicationsindustry.Theseareinadditiontotheworkdoneinlicensingand

enforcement.

THENATIONALTELECOMMUNICATIONPOLICY(1994 2020)

9.TheNTPwillfunctionasacatalysttowardsthegrowthanddevelopmentofthe

telecommunicationssectorinitseffortstobecomeamodern,sophisticatedanddynamicsector.

10.TheNTPwillformulategeneraloutlinesforthedevelopmentofthetelecommunicationssector

notonlyatnationalbutalsoatinternationallevels.Thiswillserveasguidelinestoallpartiesinvolved

includingproviders,

investors

and

the

Government

particularly

with

regards

to

the

requirements

of

investment,humanresourcedevelopment,networkandservicefacilities,absorptionofnew

technologyandresearchanddevelopment.

11.Atthenationallevel,theNTPwillcoordinatetheemergenceofacompetitiveatmosphereinan

orderlymannertoensuretheoptimumuseofthecountryresources.Forthedomesticservice,the

NTPwilloutlinethecreationofquality,hightechnology,costeffectiveandsophisticated

telecommunicationsservicesatparwiththatfoundindevelopedcountries.

12.Intheinternationalarena.theNTPwillensurethatMalaysiaisregardedasacompetitive

telecommunicationsservicesupplierandapremiermarketleaderknownthroughouttheAsiaPacific

regionandtheworld.

THEMISSIONANDOBJECTIVESOFTHENATIONALTELECOMMUNICATIONSPOLICY

13.MissionStatement

TheNTPwillbethemaincatalysttowardsthecreationofaninformationrichandintelligentnation.

14.TheobjectivesoftheNTParedividedintomacroandmicroobjectives.


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14.1MacroObjective

ThemacroobjectivessupportstheNationalDevelopmentPolicyisaimsofnationalunity.and

integrationbyencouraginginteractionbetweentheracesandregionsthroughtelecommunication

facilitiesandservices.Inaddition,theNTPalsohelpstorealizetheobjectivesofVision2020in

creatinganeducatedandinformationrichsocietythroughtheapplicationofmodernand

sophisticatedtelecommunicationsnetwork.Thedisseminationandexpansionofinformation

technologywillproduceasocietycapableofcontributingtowardsthedevelopmentofnew

technologytoenhancethecountry'seconomicandindustrialgrowth.Besidesinformation

technology,theapplicationofalltypesoftelecommunicationstechnologyinallsectorsofthe

nation'seconomywillbeenhanced.

14.2Micro

Objective

Themicroobjectivesareforthe:

14.2.1Provisionofmodern,sophisticatedandqualitycommunicationsservicesatareasonablecost.

14.2.2Ensuringthattelephoneservicesareexpandedtotheruralandurbanpopulationata

reasonablecost.

14.2.3Ensuringthatthetelecommunicationsinfrastructureisadequateandeffectiveinsupporting

thecountry's

industrialisation

efforts.

14.2.4Encouragingthegrowthofvalueaddedservices.

14.2.5Ensuringthathumanresourcedevelopmentisintandemwiththeneedsofthe

telecommunicationssector.

14.2.6Ensuringthatlocalmanufacturingindustriesforthemanufacturingoftelecommunications

equipmentcontinuetoexpandandgrow.

14.2.7Ensuringtheuseoflocalproductsbythetelecommunicationssector.

14.2.8Encouragingresearchanddevelopment(R&D)tofacilitatetheabsorptionofnewtechnology

andtoupgradetelecommunicationsfacilitiesandservices.

14.2.9PromotingbettertiesbetweennationstowardsmakingMalaysiaaninternational

telecommunicationshub.

14.2.10Encouragingthehealthyparticipationoftelecommunicationscompaniesintheinternational

marketand

investment

in

other

countries

in

the

fields

of

telecommunications.


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14.2.11Ensuringthatradiotelecommunicationsspectrumresourcemanagementisadministeredin

aneffectiveandfairmanner.

14.2.12Encouragingtheactiveparticipationofbumiputeraentrepreneursinthedevelopmentofall

sectorsoftelecommunications,inlinewiththegovernment'spolicytocreateaBumiputeraBusiness

andIndustrialsociety.

STRATEGIES

15.ThecloserelationshipandcooperationbetweentheGovernmentandprivatesectorarecritical

tothedevelopmentofthetelecommunicationssectorandtherealisationoftheobjectivesofthe

NationalDevelopmentPolicy.Therefore,theNTP'sstrategiesarebasedontheGovernmentPrivate

sectorsynergy,workingtogethertocreateamodern,sophisticated,efficientandproductive

telecommunicationssector

in

making

available

services

to

every

segment

of

society

at

areasonable

cost.ThefollowingstrategiesareidentifiedtohelpattaintheobjectivesoftheNTP.

15.1ExpansionofServicesinaSystematicandComprehensiveManner

15.1.1Thetargetofthetelephonelinespenetrationrateforthenationbytheyear2020isfixedat

50telephonesforevery100persons.Therateisfixedat25telephonesforevery100personsforthe

ruralareas.Thistargetistobeachievedthroughanincreaseinbasicfacilities,anexpansionof

existingtelecommunicationsnetworkandprovisionfornewones.

15.1.2The

Government

will

license

certain

companies

ifnecessary

to

supply

certain

infrastructure

andservicesinaccordancewiththelongtermplansofthetelecommunicationssector.Anintegrated

andreliabletransmissionnetworkthatcoversthewholenationandcapableofprovidingvoice,

video,dataandimagingserviceswillbeexpanded.

15.1.3TheGovernmentwillrevisetheratesandtariffsforalltelecommunicationsservicesfromtime

totimesothatthecostoftheservicesisreasonableandatparwiththosechargedbyneighbouring

countriesandtheinternationalmarket.

15.1.4Inthelongterm,thetelecommunicationsnetworkwillexpandtoincludefibreoptic,

microwavenetworkandsatellitesystems.Inaddition,competitioninthesupplyof

telecommunicationsnetworkinfrastructurewillbeencouragedinanexpandingmarketthat

attractsagrowingnumberofusers.

15.1.5Therealisationofsocialobjectivesinparticulartoincreaseandupgraderural

telecommunicationsfacilitieswillnotbeneglected,andindeedalllicensedtelecommunications

companiesespeciallythecarriernetworkproviderareresponsibletoachievethisend.

15.2DevelopmentofaStrategicandExportOrientedManufacturingIndustry

15.2.1Tostrengthenthenation'seconomicgrowthandspurtechnologicaltransfer,local


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manufacturingandassemblyoftelecommunicationsequipmentareencouraged.Besidesensuring

thattechnologicaltransferiscontinuousandtoprovidemoreemploymentopportunities,thelocal

telecommunicationsindustryisexpectedtogearitselffortheexportmarketinalargescale.

15.2.2Todevelopthelocalindustry,theuseoflocallyproducedequipmentisencouragedthrough

licensingregulationsforallprovidersinthetelecommunicationssector.Inadditiontothat,fiscal

incentivesarealsoprovidedtoencouragethegrowthofthelocaltelecommunicationsindustry.

15.3EncouragingCompetitiveness

15.3.1TheNTP'smainapproachistoencourageahealthyandorderlycompetition.The

telecommunicationssectorhasbeenopenedtocompetitionwherebasicinfrastructureand

telecommunicationsservicesareoperatedbyprivateenterprises.Themainobjectiveofthe

telecommunicationssectoristoencouragecompetitioninthetelecommunicationssectorinorder

toachieve

efficiency

and

to

provide

excellent

and

quality

service.

This

is

in

addition

to

the

provision

ofservicesthatwillsatisfyallusersandpeople,inlinewiththeNationalPrivatizationPolicy.

oEncouragingcompetitivenessinthetelecommunicationssectorwillbecarriedoutinstages.Itwill

startwithvalueaddedservicesfollowedbytheprovisionofinfrastructureandotherservices.

oCompetitioninthissectorwilltakeintoaccounttheexistenceofsimiliarfacilitiesthatarenot

profitableandproblemsresultingfromdifferenttechnologies.

oHowever,competitionwillnotonlybeencouragedbetweensystems(technology)butalsoamong

providersusing

the

same

system.

oThiselementofcompetitivenessisencouragedatthedomesticandinternationallevelsbytaking

intoaccountthenation'scommitmentininternationalagreementssuchasGATTandothers.

oDomesticallycompetitioninthete1ecommunicationssectorisimplementedbytakingintoaccount

thedevelopmentofanewsystem/infrastructurethatemergesfromtimetotimeinkeepingwiththe

riseindemand.

oEventhoughontheWholetheNTPencouragescompetitionitdoesnotnecessarilymeancreating

separatesystems.

oEventhoughcompetitionisencouragedtheGovernmentisempoweredtodeterminethenumber

ofcompetitorsthatareeconomicallyviableforcertaintelecommunicationssystem/services.The

NTPwillprovideahealthyenvironmentandequalopportunitiestoallcompetitors.

15.4ResearchandDevelopmentToEnhanceTheApplicationofTechnology

15.4.1Thoseinvolvedintelecommunicationareencouragedtocarryoutresearchanddevelopment

(R&

D)

to

support

local

industrial

growth

and

to

speed

utransfer

of

technology.

The

requirement

to

carryoutR&Dwillbepartoftheconditionsunderwhichlicenceswillbeissued.Itisstatedthatat


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least1%oftheannualexpenditureshouldbeallocatedforR&Dpurposes.IncentivesforR&D

activitieswillalsobeprovided.R&Dincertaintelecommunicationsfieldsshouldbeinitiated.Among

theimportantfieldsidentifiedareinformationtechnologyandthedevelopmentofinformation

technologywhichpossessestremendouspotentialforexpansionthroughtelecommunications

systems.R&Dshouldalsobemadeinthefieldsofcellulartechnologysatellitefibreoptics

microwaveandothers.

15.4.2ToenhancethecapacitytofacethechallengesofVision:2020theNTPproposesthesetting

upofanationalresearchanddevelopmentinstituteinhefieldoftelecommunications.

15.5DevelopmentofaDynamicandInnovativeHumanResource

15.5.1Thedevelopmentofhumanresourceinthetelecommunicationssectorisanimportantfactor

inensuringitssuccess.orthispurposethecreationoftrainedandskilledhumanresourceinallfields

oftelecommunications

must

be

stressed.

15.5.2Alltelecommunicationsenterprisesareencouragedtoestablishtheirownhumanresource

trainingprogramme.Atpresentthemaintelecommunicationssectorproviderhasitsowntraining

programme/planaswellasahumanresourcedevelopmentinstitute.Asothercompaniesappear,

thetrainingofhumanresourceinthissectormustbecoordinated.Effortsmustbemadetosetupa

nationalhumanresourcedevelopmentinstitute.Thisinstituteneednotnecessarilyberunbythe

Government;indeeditcouldbeoperatedbytheprivatesectorandmanagedcommercially.

Overlappingoffunctionsamongtheprovidersmustbeavoided.

15.5.3The

need

to

create

short,

middle

and

long

term

plans

for

the

training

of

human

resource

is

imperative.

15.6UpgradingRuralTelecommunicationFacilities

TheNTPwillcontinuetoemphasiseeffortstoupgraderuraltelecommunicationsfacilities.Themain

aimoftheNTPwithregardtotheruralsectoristoprovidetelecommunicationsfacilitiestoevery

householdby2020.Besidesthemainprovider,whichnowisrequiredtosupplytelecommunications

servicestotheruralareas,alltelecommunicationprovidersareexpectedtocontributetowardsthis

end.

15.7EncouragingActiveBumiputeraParticipation

TheNTPwillcontinuetoencouragebumiputeraconcernstoenterthetelecommunicationsfields

thatarecloselyassociatedwiththeneedtoprepareaninfrastructureforaninformationrich

society.TheNTPsupportstheaspirationsofbumiputeraentrepreneurstoparticipateactivelyinthe

telecommunicationssector,particularlythroughtheirinvolvementinthefollowingfields:

(i)telecommunicationsservices

(ii)manufacturing

(iii)researchanddevelopment


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(iv)humanresourcedevelopmentandconsultancyservices

15.8InternationalStrategicInteraction

15.8.1BasicfacilitiestolinkMalaysiawiththerestoftheworldareneededtomakethecountrythe

regionalandinternationaltelecommunicationshub.Atpresent,Malaysiantelecommunicationslinks

withtheworldaremadethroughsubmarinecablesystemswithASEANandAsiaPacificnations.The

installationofsubmarinecableslinkingherwithothercountriesisbeinglaid.Thiswillcontinuetobe

upgradedtoexpandMalaysia'sinternationalnetworkandeasetrafficaccesstoNorthAmerica,

Europe,theMiddleEastandAsiaOceania.

15.8.2Malaysiacanalsobelinkedwithothercountriesthroughsatellites.Continuedrelianceon

othercountries'satelliteswillcreatefutureproblemsintermsofsecurityandbalanceofpayments.

Inlightofthis,thecountryneedstohaveherownsatellite.

15.8.3TheprovisionofbasicfacilitiessuchassubmarinecablesandsatelliteswillprojectMalaysiaas

aregionalandinternationaltelecommunicationshubbesidesupgradingtelecommunications

servicesinthecountry.

15.8.4ToprojectMalaysia'simageasaprogressivetelecommunicationscentre,theprivatesector

andtheGovernmentshouldstepuptheirparticipationininternationalandregionalfora.Thisis

importantinordertoensurethatthenation'sinterestsarecontinuallytakencareof.Inaddition,

Malaysiawillcontinuetoparticipateactivelyinactivitiesorganisedbyinternational

telecommunicationsagencies.

GUIDELINESFORTHEDEVELOPMENTOFTELECOMMUNICATIONSSERVICES

16.Inadditiontothestrategiestoencouragethegrowthanddevelopmentofthe

telecommunicationsindustriesoutlinedearlier,theNTPalsoproposesafewguidelinesforthe

developmentoftelecommunicationsservices.TheNTPproposesthatthestructureofthenational

telecommunicationssectorberevisedtoensureamoreeffectivedevelopment.Thenewstructure

willbeasfollows:

16.1FutureTelecommunicationsSector'sStructure

Thestructureofthetelecommunicationssectorinthefuturewillbedividedintonetwork

infrastructureandte1ecommunicationservices.

16.1.1NetworkInfrastructure

Thisisfurtherdividedintobasicnetworkinfrastructureandvalueaddednetworkinfrastructure.

(i)Basic

Network

Infrastructure


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Thiscoversuserprovidernetworkandservicesforpersonalorpublicservices.

(ii)ValueAddedNetwork

Thevalueaddednetworkinfrastructureprovidesinfrastructurefacilitiesthroughsuppliesfrombasic

networkproviders.Generally,thebasicnetworkinfrastructureprovideralsosuppliesandoperates

basicandvalueaddedtelecommunicationsservices.

16.1.2TelecommunicationsServices

Telecommunicationsservicesaredividedintobasicandvalueaddedtelecommunicationservices.

(i)BasicTelecommunicationservices

Theseare

services

provided

by

the

basic

infrastructure

facilities

such

as

PTSN

(Public

Switched

TelephoneNetwork)publictelecommunicationsnetwork,PDSN(PublicDataSwitched

Network),telexandtrunkedtelecommunicationsnetworkortransportnetwork.

(ii)ValueAddedTelecommunicationsServices

Thesetelecommunicationsservicesarebasedordependentontheinfrastructurefacilities

mentionedearlierfortheprovisionofbasicservicesorotherserviceswithoutbuildingitsown

infrastructurenetwork.Infrastructurefacilitiescovershardwareaswellassoftware.Anorderly

competitionisneededtoprovideandmanagebasicfacilities.

16.1.3CorporateTelecommunicationsNetworkInfrastructure

Thisisspeciallybuiltforinternaluse,suchastheexclusivetelecommunicationsserviceforinstitutes,

companies,governmentagenciesandthesecurityagenciesthatarenotcategorisedunderthetypes

ofprovidersmentionedearlier.Thesenetworksarenotallowedtoofferthetelecommunications

servicescommerciallytothepublic.

16.1.4ITSuperhighwayNetworkInfrastructure

TheNTPemphasiseshowimportantitisforthenationtobuildasophisticatedITinfrastructureto

facethechallengesofinformationtechnologyinthe21stcentury.Towardsthisaim,theNTPcallsfor

thebuildingofanITnetworkinfrastructurethroughoutthenationbysupplyingfibreopticchannels,

microwaveandsatellitenetworksystemsinordertocreateastrong,permanentandreliableIT

superhighway.TheNTPwillencouragetheuseofthesuperhighwaynetworkbyallusersforvarious

informationservicessuchasdatacommunications,videoconferencing,voiceinformation,faxand

otherservices.

17.Tohelpattaintherestructuringofthetelecommunicationssectormentionedearlier,theNTP

proposesthe

following

guidelines:


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17.1BasicTelephonyServices

17.1.1TheseareprovidedbytheBasicTelecommunicationsServiceProviderswhoalsoprovide

PTSNpublictelecommunicationsnetworkinfrastructurefacilities,besidesbasicinfrastructureforthe

useofotherproviders.Generally,thebasictelecommunicationsnetworkinfrastructurecontainsthe

switchingsystemcomponent,locallinenetwork(cableandradiocommunications)andtransmission

systematnationalandinternationallevels.

17.1.2Competitioninthesupplyoftelecommunicationsservicescanbeintroducedseparatelyin

threestages,i.e.basictelephonyservicesatlocal,internationalandnationalnetwork(trunked).

Competitionisintroducedtothetrunkdiallingservicethroughfibreopticnetworks,satelliteand

microwavesystems.Competitionforinternationalserviceisintroducedtooandwillsooncoverlocal

areas.Certainaspectsaretakenintoaccountwhenconsideringtheintroductionofcompetitionfor

theprovisionofbasictelephonyservices.Theseincludetelephonelinepenetrationrate,thegrowth

rateof

telecommunications

services

in

rural

and

urban

areas,

reasonable

service

charge

and

infrastructurewastage.Thereforecompetitionisintroduceinanorderlyandselectivemanner.

Competitioncanencourageusewherebyitbringsaboutaloweringofservicechargebesides

enhancingthequalityofservice.Atthesametime,competitionhelpsthenation'seconomicgrowth.

17.1.3StudiesoftheGrossNationalProduct(GNP)growthrateshowthatthetelephoneline

penetrationratewillincreasefrom12telephonelinesforevery100personsin1993to30linesfor

every100personsin2005.ThismeansthattheNTP'saimofproviding50telephoneslinesforevery

100personsby2020iswithinreachandintroducingcompetitionisthebestmethodtoachievethis

objective.

17.1.4Astudyofconsumerneedshasshownthatthedemandfortelephonyservicesintermsof

basiclinecapacitywillincreasefrom64kbpsto150Mbps.Thistargetwillbeachievedwhenthe

nation'sexportofvalueaddedproductsincreasesandthereisademandforEDIservicesandthat

theintelligentnetworkhasbeenbuilt.

17.1.5Basictelephonyserviceswillcontinuetobemodernisedthroughtheintroductionofdigital

servicesandnetworktomeettheincreasingdemand.Theprocessofdigitalisingitsexistinganalogue

networkwillcontinuetobeencouraged.Therestructuringwillchangethenetwork'sbasicstandard,

includingthenumberingscheme,andtheinstallationroceduresfromhierarchytomesh.Wiring

procedureswillchangefromnormalcabletofibreoptics.Asaconsequence,theneedfordifferent

typesofcompetentpersonnelwillchangefromtimetotime.

17.2SupplementaryServices

17.2.1Theseareservicesthatcometogetherwithbasiclecommunicationsservices.Theseservices

includepayphone,telefax,leasedcircuit,tollfreenumber,voiceinformation,homecountrydirect,

datel,tieline,faxplus,bureaufaxandotherservices.

17.2.2Licencesarerequiredforpayphoneandvoiceinformationservices.Othersupplementary


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servicesareallowedonconditionthattheyuseapprovedequipment.

17.2.3Thepayphoneserviceisaformofsocialservicefortheconvenienceofthepeople.Theycan

makecallsusingcoins,prepaidcardsorcreditcards.Atpresent,therearetwopayphoneservice

operatorsintheruralandurbanareas.Competitionisencouragedfortheprovisionofthisservice

andtheNTPurgestheimplementationofuniformprepaidcards.

17.2.4Thevoiceinformationserviceisthelatestservicewithtremendouspotentialwherethelatest

informationonvarioussubjects,isrelayedtouserswhodialspecialnumbersgiven.Thisserviceis

opentocompetition.

17.3DataandInformationFacilityServices

17.3.1Theseservicesmeettheneedfortherelayingofinformationwhichresultsfromthe

integrationof

computers

and

telecommunications

technology.

The

types

of

services

under

this

categoryincludeMAYPAC,MAYCIS,DIGITALINEandISDNservices.Eachservicehasitsowntechnical

featuresandthechoiceofserviceisdependentonthebitratetobetransmitted,thecostofthe

service,andthestandardoftheequipmentused.

17.3.2CompetitioninthesettingupofdataserviceintheformofValueAddedNetworkServices

VANSisencouragedforbothnationalandinternationalservices.VANSisimportanttomeetthe

needsofthenationalEDIwhereallbusinesstransactionsaredoneelectronically.LocalVANS

companiesareencouragedtoestablishjointventureswiththemainVANSprovideratthe

internationallevelsotheservicecanbeoperatedeconomically.

17.3.3ISDNisthelatestservicethatencompassesdata,imageandvoice.Itcaninteractwithother

dataandvoiceservices.Italsoprovidesvarioussubscribersfacilitiessuchascallernumberand

conferencingfacilities.

17.4MessagingandTextTransmissionServices

17.4.1TheseservicestransmitinformationintheformsofmessagesandtextsandcoverTelemail,

TelexandTelegramservices.Theuseoftheseserviceshasdecreasedowingtotheemergenceof

moresophisticatedservices,buttheywillstillbemaintained.

17.5RadioCommunicationsService

17.5.1Thisisarapidlygrowingserviceduetothesophisticatedtechnologicaldevelopmentinthe

semiconductoranddigitalprocessingfields.Theavailabilityoffrequencybandandradiopath,which

hasbeenlimiteduntilrecently,hasbeensolvedandhigherfrequencybandshavealreadybeenused.

17.5.2Toensurethecontinualrapidgrowthofthetelecommunicationsservices,monitoringthrough

computerisedfrequencymanagementsystemwillstillbecarriedout.Tomaketheservicemore

complete,rearrangement

of

the

frequency

bands

used

is

done

from

time

to

time

to

provide

access

tootherservicesifneeded.


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17.5.3Radiocommunicationsservicecoversvarioustypesofservices,suchasmobileradiophone,

CT2,satellite,maritime,amateurradio,highfrequencyradio,leasedchannelandothers.

17.5.4Themobileradiophoneserviceisthemostpopularradiocommunicationsserviceamong

users.Thisserviceincludescellulartelephones,trunkradio,pagerandCT2services.Allofthese

servicesrequirelicencesandcompetitionisencouraged.However,theuseofoverlappingfrequency

bandsmustbeavoidedthroughpropercoordinationatnationalandinternationallevels.Even

thoughcompetitionisencouraged,theentryofnewcompaniesmustbebasedondetailedtechnical

studyandtheresultantrealrearrangementoffrequencybandsonacasebycasebasis.

17.5.5Thetrunkedradioserviceprovidesmobileradiophoneservicetoradiouserswhosharea

commonfrequencytooperatelocalorareawideservice.Forthepurposeofimprovingthequality

ofserviceandthecoveragearea,technicalsuitabilitystudiesneedtobedonefromtimetotime.

17.5.6The

paging

service

is

aone

way

radio

service

that

relays

messages

to

the

subscribers

through

voiceand/oralphanumericformsatlocal,nationalandinternationallevels.Astherehavebeen

manylicencesissuedforthisservice,astudymustbecarriedouttomaximisetheuseofradio

frequency.Oneoftheapproachesproposedistomergelocalcompaniestoprovidethenationwide

service.

17.5.7Thecordlesstelephoneserviceisawirelesstelephoneserviceusedbymobileusersbuttheir

movementsarelimitedtoanareaofonly100metres.Atthemoment,itisonlylimitedtomaking

calls.TheplantointegratepagingservicesinCT2equipmentwillincreasethecapacityofthis

service.Competitionisencouragedandtheparticipationofbumiputeraequity,aswellastheuseof

localequipment,

are

stressed.

This

service

should

also

be

enhanced

by

using

new

technology,

such

astheCT'3andthePersonalHandyPhone(PHP).

17.5.8Thesatellitetechnologyservicehastremendouspotentialandshouldbeencouraged,

especiallysincethenationrequiressophisticatedtelecommunicationsservicesthatcouldhelpher

achieveVision2020ofturningMalaysiaintoanindustrialisednation.Malaysianeedsherown

satellitenetworktosupportthedevelopmentofhertelecommunicationssector.TheNTP

encouragesthemaximumuseofthecountry'ssatellite.ExistingsatelliteservicesincludetheIntelsat

BusinessService(IBS),VSATandTVRO.TheTVROserviceenablesthecountrytomakeuseof

internationalsatelliteservicestoobtainthelatestinnews,sportsandentertainment.TheNTPaims

touseTVROaspartofthetelecommunicationsinfrastructureforthedisseminationofinformation

tothepeople.Telecommunicationsservicesinthiscountryhastremendouspotentialofrapid

expansionasweheadtowardsthe21stcentury.

17.6NewServices

Newinternationalservices,suchasIRIDIUMProject21,INMARSAT,PCN/PCSvideoconferencingand

telecommutingrequireproperplanningwithregardtothescopeofcompetition,theneedsofusers

andthetechnicalitiesinvolved.TheNTPwillencouragetheintroductionofthesenewservices

throughan

equitable

issuance

of

licences.


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THEMAINISSUESOFSUPERVISION

18Supervision

TheGovernmentwillcontinuetoberesponsibleforthesupervisionofthetelecommunications

servicesectortoensurethattheinterestsofconsumersandprovidersareprotectedandbalanced.

TheGovernmentwillcontinuetoensurethattheinterestsofthenationaregivenpriorityoverother

interests.Themainissueswhichcontinuallyattractattentionarelicensing,spectrummanagement,

interconnection,tariffs,standardsandqualityofservice.

18.1AnOrderlyLicensingSystem

TheNTPwillencourageatelecommunicationsnetwork/serviceinfrastructurelicensingsystemthat

isorderly,efficientandeffective.Theissuingoflicenceswillbecarriedoutthroughabiddingoran

opentender

system

to

respondents

who

are

qualified

according

to

the

criteria

of

the

Licensing

Board.

18.2AnEfficientandEquitableSpectrumResourceManagement

Spectrumresourcewillcontinuetobemanagedinanorderlyandequitablemannerandwillbeused

asthebasisforthecreationofacompleteradiocommunicationsnetworksystem.TheNTPwill

resolvetheproblemofoverlappingfrequencyatsharedborders.Itwillensureanequitable

allocationoffrequencybandsamongneighbouringcountries.Furthertothis,theNTPwillensure

thatanationalfrequencycentreisestablished.

18.3TariffDesign

TheNTPwillemphasisetheformulationofatariffstructurewhichtakesintoaccounttheinterestsof

variousparties.Ithastobenefitconsumersandensurereasonablereturnstotheprovidersbasedon

theprincipleofequitabilityandguidedbymarketfactors.Itshouldalsobesubjectedtochangesin

theConsumerPriceIndex(CPI).Thetariffbetweenoneproviderandanothershouldbebasedonthe

principleoffairplay.Itshouldtakeintoaccounttheinterestsofallparties,i.e.,therateofreturnto

providers,aswellasqualityofserviceforusers.

18.4NetworkandServiceStandardSystem

TheNTPwillemphasiseanorderlyandcomprehensivenetworkandservicestandardsystem.The

standardsystemisgearedtowardsthestreamliningandsynchronisationofthedesignsandtypesof

nationaltelecommunicationsnetworkandsystems.Thestreamliningofstandardswill,coveraspects

ofthenumberingplan,access,interconnection,wiring,thesafetyofusers'equipmentandbilling

integrity.

18.5NumberingandAccessibilityPlan

TheNTPwillencouragethesettingupofacomprehensiveandintegratednumberingplanamong


13/13

thenetworks.Theimportantaspectofthenumberingsystemistheaccesscodenumberwhichwill

bedecidedinanequitablemanner.

18.6TelephoneDirectory

TheNTPencouragesallprovidersoftelecommunicationsservicestoproducetheirowntelephone

directoriesfortheconvenienceofthepublic.TheNTPencouragesthepublicationandproductionof

thisdirectoryinallformats,includingelectronicprintingbytheprovidersthemselves,orbyany

othercompanywithinterestindisseminatinginformation.

19.ConsultativeForum

Initseffortstosetupanefficient,effectiveandcompetitivetelecommunicationsservice,the

Governmentwillinitiateconsultativeforawherebyallpartieswithinterestsinthe

telecommunicationssector,

i.e.,

the

providers,

users,

government

agencies

and

individuals,

can

have

opendiscussiontodevelopandenhancethenation'stelecommunicationsservices.

CONCLUSION

20.TheNTPpresentsmacroandmicrooutlinesofthedirectionthenationaltelecommunications

industryisheadingtowardsasacatalysttothenation'scontinuedrapiddevelopment.A

comprehensiveexplanationisgivenofthephilosophy,objectivesandstrategiesoftheNTPtoenable

allpartieswithinterestsintheindustry,includingusersandthegeneralpublic,tounderstandandto

concentrateall

their

efforts

towards

achieving

the

objectives

of

the

NTP.

The

private

sector's

role,

particularlyinanopenmarketwhereitissubjectedtocompetition,isimportantandcritical.

Efficiencyandeffectivenessaretwoimportantcriteria,andtheyformthebasisfortheNTPinitsaim

ofachievingthevisionofadeveloped,united,caringandcivilisedMalaysiannation.

Source:MinistryofEnergy,TelecommunicationandMultimedia

28the National Telecommunication Policy (1994 - 2020)

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Transcript of 28the National Telecommunication Policy (1994 - 2020)