Billion-ringgit profits for telcos don’t matter if service unsatisfactory: Annuar

LocalBusiness & Finance
29 Mar 2022 • 12:40 PM MYT
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Billion-ringgit profits for telcos don’t matter if service unsatisfactory: Annuar

KOTA KINABALU – Communications and Multimedia Minister Tan Sri Annuar Musa today said it was not impressive for telecommunication service providers or telecommunication companies to record billion-ringgit profits if they still provide unsatisfactory services.

He said the government had invested billions of ringgit to provide telecommunication infrastructure, including fibre optic point of presence network hubs costing nearly RM4 billion, for the people without expecting any financial return.

Annuar said he had no objection to the companies making profits, but they had to be responsible by investing part of the profits to improve the quality of their services in line with the infrastructure development implemented by the government.

“The infrastructure is provided by the government, TM and others, but the last mile is provided by the telcos depending on the equipment they install at the towers...the telcos have their priorities; if there are many customers in one area, they will concentrate on it, and leave the equipment elsewhere not upgraded.

“This is why the 4G internet (speed) can range from 10mbps to 100mbps depending on the ‘last mile’ hardware provided by the telcos. As such, I call on our telcos to go hand-in-hand (with the government) to provide the best service for the people,” he added.

He told this to reporters after launching RTM Sabah’s digital satellite news-gathering vehicle at the Communications and Multimedia Integrated Complex Ministry in Kepayan here today.

According to Annuar, the 4G coverage in Sabah is at 86% for populated areas, but the internet quality in some areas still does not reach the required speed.

“There are places with 10mbps, 12mbps, and about 20mbps, while our minimum quality for 4G LTE must be 35mbps. If we want to reach that level, populated areas must reach 60-100mbps because when there are many people, the speed drops.

“4G is just a technology that allows higher (internet) capabilities, but how high depends on the infrastructure and hardware provided,” he added.

Annuar said apart from upgrading the telecommunication equipment at the towers, telcos were also recommended to work with the relevant parties to increase the capacity of the towers themselves, including in terms of providing backup power supply components.

“When electricity supplies are cut off, the internet will also be automatically cut off because the tower depends on such supplies.

“As such, telcos and those responsible can look into making hybrid towers that take power from solar panels and generators,” he added.

He said efforts to provide high-speed internet facilities cannot succeed without telcos responding to the government’s call to jointly improve telecommunication facilities for the people. – Bernama, March 29, 2022