LETTER: As a nation, we have had to make some decisions that seemed counter intuitive at the time, even against global norms, but proved to be wise over the course of history.
Starting in 1996, we surprised the world with the Multimedia Super Corridor (MSC), where world leading applications such as our MyKAD were introduced, leading to recent projects such as National Fiberisation and Connectivity Plan (NFCP) and 5G Demonstration Projects.
The recent unveiling of a series of decisions made by the Minister of Communications and Multimedia, Datuk Saifuddin Abdullah, was one of those defining moments. What the Minister decided to act upon must have been based on facts and data that only he had access to.
The decision by the ministry to award the spectrum to the telco players had logic embedded into the decisions, however lacking in explanation, allowing people to speculate on numerous interpretations.
Altel was labelled as the smallest operator who does not deserve spectrum. It does not seem to be public knowledge that it is because Altel completed migration to digital TV infrastructure that the 700MHz spectrum was freed for broadband use to begin with.
The digital TV infrastructure, or Analogue Switch Off (ASO), was announced to be completed on 31 October 2019, fully funded by Altel under its wholly owned subsidiary MYTV. Estimates are that between RM1 to RM1.5b was spent, without the Government forking out a cent.
A little known fact is the award of the 700MHz spectrum would not be free. Altel has to pay for the spectrum and the allocated spectrum is the smallest compared to Maxis, Digi and Celcom despite Altel spending billions.
With the release of the spectrum, the Government is estimated to earn approximately RM4 billion in revenue, which can be used to further fund its digital infrastructure initiatives for the entire country. Clearly, only companies who have the financial resources to pay for the valuable spectrum should be considered.
Celcom, Digi, Maxis, TM were the other named parties to be entrusted with the 700MHz. No one should fault the Minister for these decisions. These cellular services providers combined, managed more than 35 million subscribers, equivalent to more than 78 percent of the total subscriber market share on their network.
Subscribers will benefit from the efficient use of the spectrum with enhanced coverage and overcome speed issues. Those players who are not given an allocation due to the limited spectrum availability can co-share with the rest of telco company for the optimum utilisation of the spectrum.
In the mobile sector, TM is considered a small player. For the past two years TM have been bombarded with complaints on its Streamyx copper-based broadband service which has an upper speed limit of 8mbps of sorts. Wireless broadband is not only faster on 4G or 5G, but it also can be deployed almost instantly.
When TM lost its market valuation by over 50 per cent in 2018, many quarters claimed the Government was short sighted and unfair towards TM who had to carry on its shoulders the burden of the nation's telecommunication infrastructure even in areas that were not commercially viable.
Now that the Government is providing TM a chance to provide better, faster coverage for the country by giving them the portion of the 700MHz spectrum, why are we complaining?
With new technologies and this spectrum, TM can transform itself, and in so doing provide much needed services to the rakyat with a combination of fixed and mobile services.
Finally, one cannot avoid asking the question, if the award processes had started, and a sudden change is announced, would the Government be faced with lawsuits and bear financial implications? The logical conclusion is, yes.
Our leaders were voted into office. This Minister has been entrusted to be in two consecutive Cabinets. We must let the decisions made be explained and the Ministry and agencies responsible to execute those decisions as they see fit. If the end result is good, by all means proceed.
A Government needs to do just that, govern. And make decisions. We cannot pretend to be party to those decisions without facts and data in hand. Trying to walk in the Minister's shoes, and not being accountable for the consequences, is nothing short of being irresponsible.
S. JAMAL
KUALA LUMPUR
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times