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Sakmongkol ak 47

ariff.sabri@gmail.com

Sunday, 28 March 2010

The Age of HSBB- part 1


It is the age of broadband

What is the medium of transmission? Fiber optics? Then TM will work closely with the fiber optic manufacturers and suppliers. One deputy minister who has a monopoly status in supplying fiber optics will become a zillionaire high incomer. People in TM will have a network of friendly suppliers whom they have registered earlier. When you have inside knowledge, ALL the future businesses can be anticipated.
This is the secret of becoming a high incomer. Hence when TM announces on 24th March, it will start offering triple play services- THAT sets tongue wagging.
It's worrying. The PM wants to start this country on a path to high income by conferring near monopoly status to TM. Telekom Malaysia announces its providing HSBB by charging rates that are unreasonably high. We have the right to ask- can the same facilities and service with the same capacity be provided at cheaper rates? If we can, then, something is not right with the charges TM is making.
Then we want to ask, what is actually being offered to us at that price? We don't want this HSBB project to be another excuse for some people to underwrite their retirement plans. Yes, we have heard senior government officers maneuvering the timing of projects worth hundreds of millions to coincide with their retirement. Even ministers overseeing particular ministries are reticent in corralling such senior government officers. Let's ask Rais Yatim for instance.
Who's not to say, the same shadowy agenda doesn't exist inside TM?
Who do we compare to? We compare the same services provided for by Singapore whose people have higher per capita cash incomes than our people. The logic is this. If higher income people can enjoy cheaper rates, it is reasonable to expect much more sensibility from a poorer country- it should be charging much less because our per capita income is lower.
TM is a behemoth. It surprises us that TM's offer to wire up the whole county with superfast internet service is the only offer. Sometime ago, when the Pahang government wanted to join in the fray to provide the country with the same service, it is said TM hired someone to extol its virtues while casting aspersions to the abilities of others. If that is true, TM wasn't playing fair. It wanted this business to be wholly theirs.
If the PM is serious in talking about innovation and creativity and all that, he must be mindful of any attempts to monopolize any market segment. Begin by dismantling any vestiges of monopoly. For instance, let there be more players offering the same service as TM and see how they compete. Let there be more than one ASTRO. Because satellite TV providers can also muster the market for triple play services.
Let there be more electricity provider direct to the people instead of selling power to TNB and reselling it. Let's see whether TNB can compete and those wanting IPPs can compete by offering better and cheaper services. Let there be more than one water supplier.
Let's have more broadband competitors. Why TM only? Please issue more cable TV operator licenses. So they can offer competition. We are not just going to sit around and accept what the CEO of TM says- this and that. Right now, he is sitting on cash piling machine.
More broadband competitors. That's the idea behind creative disruption expounded by Schumpeter. Create as many entrepreneurs as possible because they are the pivots on which everything turns as Schumpeter says. Now, the emergence of TM as the sole entrepreneur can hardly be said to be symbolic of disruptive creation.
But we shall discuss these philosophical issues at another time. There is an interesting book on Schumpeter- Prophet of Innovation by Thomas McGraw in the market to whet the appetite of the serious researcher.
For the moment let's ask what exactly does TM offer us now? Triple play? A triple-play network is one in which voice; video and data are all provided in a single access subscription. The most common applications are Telephony, community antenna television (CATV) and high-speed Internet service. The transmission medium may be fiber optic , conventional cable ("copper") or satellite.
Issue more licenses to downstream businesses. Fiber optics?- not Mukhriz alone please. Satellite? Not Ananda alone. Is TM going to use conventional cable? Issue licenses for suppliers then or appoint a dealer supplier network.

11 comments:

Anonymous,  28 March 2010 at 11:56  

Dato'
Tq for all the effort to highlight the issue.
Like it or not Mr. PM is so clueless and is totally out of touch. It is about time that this PM shape up or will be shipped out.
With PErkasa alias Pekasam leaders shouting like a mad dog, yet he does nothing to assure the people and allowing this monopoly to go on with Mukhriz who was at the front row of the Perkasa AGM, is unforgivable.
Apa nak jadi Tok, tambah mengarut UMNO ni, dah lah kena tibai dengan orang yang gila talak kuasa si former PM.
Who can say the opposite of your arguement? No one!!! It is so sick..meluat!!! apa ke hal mereka ni bodoh sangat atau pepura bodoh sebab ada kira kira.
Hidup AK47, mari kita bawa ke Hulu Selangor!!!

Anonymous,  28 March 2010 at 12:49  

Salam Dato Sak,

As expected, the highlighted piece by you I truly concur

How can TM explain 5MBPS chargeable at RM 149.00 subject to 60GB Monthly Cap?

What sort of Marketing is this?

For me, I just want reliable, consistent & resilient back to back service for Internet!

Hello TM, Streamyx basic customer service barely up to par - installation new phone line + basic customer service as well product knowledge is zero how can you start charging the public with this new scheme nonsense!

-Ikan Tongkol-

donplaypuks® 28 March 2010 at 13:04  

Bro

It is not just a matter of higher PCI in S'pore. We have a population that's about 5 times greater than that of S'pore and so future profits will be higher and sustainable as penetration increases.

Seen in this complete context, TM's (highway robbery) pricing is typical "FU citizens, we'll charge monopolistic prices, what can you do about it?" arrogance.

I am not suggesting "brutal competition" in all sectors for a relatively small country like ours. But, certainly, more players can be allowed to come in as in the handphone market, determined by open tender where say the top 4 bidders pay for a Govt licence. When 3G licences came up in Germany, the minimum bid was $50 miliion!! That fibre optic monopoly given to the slow witted Mukhriz should be freed up for other local players; as it is, he has had this monopoly for 10 years already!

As for Toll Highway Operators and the IPP MAFIA who talk about the "sanctity" of Govt contracts when talks surface about re-negotiations, it's time for Najib to act. He should invoke the wide powers the PM has to revoke ALL these one-sided contracts (in the case of Tenaga -45% of its operating costs) and allow Tenaga to dictate fair rates. There is nothing holy about contracts which are not in the public interest and which were secured by bribes and kickbacks (for which Firaun and the EPU have much to answer for)!!

dpp
We are all of 1 race, the Human Race

Anonymous,  28 March 2010 at 14:06  

Salam Dato',
Itulah yang tersurat dan tersirat dalam menjayakan HSBB projek. Mungkin juga monopoli Era baru dari TM.
Kenapa GOV tidak mewujudkan Konsortium melibatkan others GLC dalam menjayakan HSBB terutama TimeDotCom dn JARING.
Kita jelas bhw TimeDotCom mempunyai keupayaan dlm infrastruktur berkaitan Fiber optic malah pernah memegang rekod
mempunyai infra fiber optic terpanjang di Malaysia.
Begitu juga halnya dengan JARING yang merupakan pioneer dan berpengalaman luas dalam perkhidmatan Internet di Malaysia.
Dua component penting (Fiber + Internet) dlm HSBB.
Tahukah kita bhw TimeDotCom dan JARING menghadapi kemerosotan dlm perniagaan masing-masing akibat monopoli TM dalam industri ini.
Tahukah kita bahawa kakitangan TimeDotCom dan JARING adalah majoriti melayu.Banyak mulut MELAYU yang perlu disuapkan.
Kenapa dalam menjayakan projek mega seperti HSBB ini, pihak kerajaan tidak melibatkan TimeDotCom dan JARING,
yang kedua-duanya GLC kerajaan secara langsung. Penglibatan mereka secara langsung akan membantu perniagaan
mereka mendapatkan keuntungan. Sekaligus mengurangkan pergantungan mereka kepada kerajaan.
Percaya atau tidak sekiranya berlaku kerugian pihak Gov pasti akan membantu mereka. DUIT RAKYAT LAGI
Dengan kewujudan HSBB, pasti TimeDotCom dn JARING akan mengalami penurunan dari segi pendapatan, silap gaya kerugian.
Janganlah disalahkan bangsa lain, sekiranya orang melayu yang dipilih (Politik/KakiTangan Gov /Swasta) dan
diberi amanah dan kuasa utk menjayakan agenda Melayu sendiri belot dalam memperjuangkan hak-hak orng Melayu.
SEDANGKAN kami yang dibawah ini sentiasa dimomok, dipaksa dn ditekan utk mempertahankan, memperjuangkan serta meneruskan
menyokong agenda Melayu. Tepuk dada, tanya hati masing-masing - AreaTv

Anonymous,  28 March 2010 at 14:45  

Dato'Sak,

Itu lah sewajar nya sebagaimana Dato' perkatakan. Segala nya dalam keadaan Ideal dengan pemikiran yang ideal. Soal nya kenapa orang bersaing dan berlawan siang dan malam. Ini berlaku dalam semua sektor kehidupan, baik ekonomi, politik dan sosial. Ini semua kerana apa?. kerana HARTA dan TAHTA. Macam macam cara dan kaedah digunakan. Kuasa dan wang menjadi BERHALA.Putar memutar menjadi amalan biasa. Itu sebab ALLah menurun kan Rasul. Kalau semua berlandaskan ajaran islam, apa yang Dato, perkatakan tidak berlaku.

Entah lah , TK Bentayan.

James Q,  28 March 2010 at 15:02  

This is why there are still poor Malays. This is also what Perkasa led by Mahathir and Ibrahim Ali are fighting about - NOT really proecting Malays - but protecting themselves. In Mahathir's case, his son's interest. The other two are already billionaires. Now to see that Mukhriz gets his due.

kuldeep 28 March 2010 at 19:09  

Sometimes I wonder if they (powers that be..TM) does a proper market study before deciding on pricing/offers?

I have a suspicion that they are doing desk top pricing..i.e equate all costs,add "risk" margins..then put in "price " that will yield their minimum hurdle rate?

Then,if PM ask why price is high...show all the cost plus inflated risks etc..and substantiate with lots of acronyms such as LoD,DemApp,BAU,ROTF Index etc..PM won't dare to ask too much cos it maybe a stupid question.

I remember Mr Sony wanted the smallest transistor radio...after months his tech guys came back with a very small radio.Mr Sony promptly requested for a bucket of water and deftly allowed the radio to be submerged.
And he told the guys...as long as there are air bubbles..means there is stll means to miniaturize..

PM shld do same..throw the CEO into a pool with a ton of bricks tied to his ankles..and leave him down there until he gets the prices down to be as low or at par with our neighbours >>just to teach him the lesson that no one can live in a vacuum.

flyer168 28 March 2010 at 20:14  

Dato',

Another Bull's Eye article of the rampant exploitations of the citizens by the Powers that be and their Partners in Crime...since 1969 under the guise of Ketuanan's "setback".

Is there any POLITICAL or CORPORATE WILL to ENSURE a "COST-EFFECTIVE" delivery of the Broadband service to the consumers/citizens?

Are there any alternative "Recourse" for the consumers/ citizens? ZILCH!

Just like Astro & everything else in this Bolehland...where the customers are given 2 choices...

Heads, I Win...Tails, you lose!

Well, what is the solution?

In my opinion, we can bitch about it unil the cows come home or WE CAN MAKE IT HAPPEN at the BALLOT BOXES in Hulu Selangor for a start & keep on that momentum!

JUST DO IT!

Cheers.

Anonymous,  28 March 2010 at 20:29  

ha2 ha2,

truly for Agama, Bangsa and Negara.

I would shout the same if I am the main supplier for TM.

Dato', I respect you for calling a spade a spade. Though we are on the different political divide, I have the greatest admiration for you. if BN is filled by a majority of your kind, then PR will be a goner. I never wish for that but the who wants to take a position with PR, an unproven coalition?

Anonymous,  28 March 2010 at 21:01  

We pay monopoly prices for practically everything in this country from cars to this.

That is the only way they can show they can do business profitably.

Rid this company off monopoly? Dream on , those cronies would scream their heads off.

The system must go... so you know who should go.

Anonymous,  28 March 2010 at 22:30  

Dear Dato Z,

I think TM's IPTV is fantastic..all it needs is good programmimg.

I am glad to officially declare to Dato Z that I am able to offer my services to introduce compelling content that will catapult TM IPTV into the future...a Mercata from BAU..(a reminder in case the Mckenzienesque acronym escapes ur..Meteoric Rise from Business As Usual).

Please overlook the RM 2 paid up of my ComCee (Content Management Company)..I bring 42 years of solid,unquestionable experience in multi dimensionals,focussed reviewals,in-Depth appraisals of various entertaiment and communications channels.(Don't call me a sofa slob ok?)

My offer is simply for TM to give me 2000 hours program slots per annum @ 50 K per slot.Payment 30% on signing,30% on content realisation and balance as and when shown.
To simplify processes it will be a 3 years term contract with option for me to decide to continue for another 2 years.To allow for the usuals and inflation,automatic rate adjustment of 12 % per month;with a special clause of 30% once off continuing up the cliff (o2cUc) increment anytime should I marry a diva/superstar/actress/Puteri or anyone of similar ilk.

I am granting Dato Z a 10.45 am time slot to meet me @ Kayu Nasi Kandar SS2 on Friday next ; failing which my offer will lapse and I will be officially joining Perkasa to haunt you.

Thanks

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