'WiMAX players need a shaking'

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THE government's target of 50 per cent broadband penetration by 2010 will not be accomplished if companies awarded the WiMAX (Worldwide Interoperability for Microwave Access) licence do not start rolling out their services to users soon.

"It is time the government take stringent measures to ensure all industry stakeholders play their part and fulfil their pledge in reaching the target set under the National Broadband Initiative," Green Packet Bhd (82) group managing director Puan Chan Cheong said.

In an interview with Business Times in Kuala Lumpur, Puan said the WiMAX rollout in the country was still slow.

He urged the government to move in and give the industry players a shake.
Out of the four WiMAX players in the country, Packet One Networks (Malaysia) Sdn Bhd, or P1, which is a unit of Green Packet, was the first to successfully launch the new technology in the market, while others have opted to wait till next year or have yet to make any announcements.

It is learnt that the government had earlier ruled that all WiMAX players awarded the 2.3Ghz spectrum must offer the service to 25 per cent of the population in their service areas by this year-end or see their licence revoked.

However, no such action has been taken to date.

The other WiMAX players are Asiaspace Sdn Bhd, YTL e-Solutions Bhd and REDtone International Bhd.

Puan said concerted efforts from industry stakeholders were needed to reach the broadband target, which was only two years away.

"It is time for all industry players to work together to see it (the target) happen," he said.

The government had previously set a 75 per cent target, but later lowered it to a more realistic 50 per cent.

Puan added that among the issues that should be addressed was the lack of infrastructure to roll out broadband services, especially in the rural areas.

"The government should use the more than RM3 billion collected from telco industry players to provide infrastructure, among other things," he said.

He pointed out that the broadband penetration in the country of between six and seven per cent, covering a household of 17 per cent, was low.

"Wireless technologies, until recently, did not have the necessary range, or lacked the bandwidth to make them a viable solution," he said.

Puan said that WiMAX held promising potential as an alternative technology to connect the underserved rural areas that would be unlikely to receive fixed-line services.

"Thus, we believe there is a significant market that WiMAX operators can exploit. Out of the key drivers for WiMAX take-up in the country, topping the list would be the desire to close the digital divide," he said.

Puan also called on the government to open up the WiMAX market to new players in future to increase the competition and challenge existing players to provide better service.