KUALA LUMPUR – Mobile internet customers are bearing the brunt of the impasse brought by the resistance of telecommunications companies (telcos) in embracing the country's current 5G network rollout, said consumer advocates.
For many years, consumers have complained over sluggish 4G connectivity in both rural and urban parts of Malaysia, despite the technology being readily available for nearly a decade.
Although the 4G spectrum was launched in 2013, the network speeds remain a source of frustration for many end users who air their grouses on social media on a daily basis.
Understandably, many end users complained over the speed issue as their livelihoods depended on mobile internet for them to work remotely, or from home, due to the Covid-19 pandemic.
@celcom 4g+ but this is the speed im getting? pic.twitter.com/riLG4senq0
— Raven (@Raven20976965) December 16, 2021
Yo @Celcom Why is my line always E whenever Im in the house. I have to get out of the house to get one bar of 4G! What is up today? I need to work
— xhijabae (@xhijabaee) December 16, 2021
Maxis is being shitty for these past few weeks like i’m in the middle of kl and all I get is one bar of 4G??!! While I was in the middle of the forest I can get 3 bars of 4G??
— Izzyyyy (@IzyyWizzy) December 16, 2021
Furthermore, recent reports have put Malaysia’s 4G speeds at the global bottom tier, trailing behind neighbouring Vietnam, Thailand, and even Laos for “Best Mobile Experience”.
And yet, the same telcos have orchestrated a pushback against the single wholesale network brought by Digital Nasional Bhd (DNB), citing pricing and transparency concerns.
Regardless, DNB on December 15 has announced Telekom Malaysia Bhd and YTL Communications Sdn Bhd as the first two operators in the country to provide their customers with 5G connection, with the spectrum now available in large parts of Putrajaya, Cyberjaya, and Kuala Lumpur.
The remaining telcos, on the other hand, have asked the government to allow two 5G wholesale networks to operate, and stated their openness in having stakes in DNB, among other demands.
Given the complaints by the end users, can consumers trust telcos to deliver quality 5G services? Moreover, are these telcos delivering it out of the best interests of their customers, or have they placed big profits above all else?
Federation of Malaysian Consumers Associations chief executive officer Datuk Dr Paul Selvaraj said the providers of 5G services to telcos, whether DNB or not, are irrelevant to the end user.
“The question is, ‘what is best for the consumer?’ Both sides (telcos and DNB) claim that it’s for their (customers’) benefit,” he asked.
Finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz had previously assured that telcos would pay less than RM0.20 per gigabyte (GB) for 5G connections.
Currently, the average revenue per user, based on published accounts of the telcos, averages between RM43 and RM47 per month, with consumption of data per user ranging between 22GB and 25GB per month for 4G connections.
On average, customers are charged approximately RM2/GB, while the costs for telcos to produce 4G speeds range between RM1.50 and RM1.70.
With the current charges in mind, Paul said both the government and telcos must ensure full transparency over the 5G roll-out, as the party that pays the “ultimate price” was the consumer.
“Who will give the best deal to consumers? And from the options, have they determined what is really the best deal?”
Paul said for the benefit of consumers, all stakeholders should hold open talks and conduct studies.
He added that the findings of the studies should be made public so that the country could truly determine the best way forward.
Despite all the good things being said, the consumers always end up paying the price if things are not transparent and commitment is not made. The 5G provider is irrelevant for the end users, what’s most important is that the consumers get the best deal.”
Meanwhile, former International Association of Consumer Law president Prof Emeritus Datuk Sothi Rachagan echoed the woes faced by end users, as highlighted by Paul.
Similarly, Sothi also noted that greater transparency on the roll-out was needed to assure customers that they were getting the best deal.
“We are just not getting enough information on the infrastructure. We don’t know enough to say that (having a single wholesale network or not) is a good idea,” Sothi, who is also former dean of Universiti Malaya’s law faculty, told The Vibes.
“But if there is some clarity on how it is managed after it (infrastructure) is set up, people will be more comfortable.”
In September, DNB announced the appointment of Swedish telco and networking company Ericsson to undertake the 5G roll-out in a ten-year deal worth some RM11 billion.
Maintaining that the deal was above board, DNB later revealed that the tender was around RM700 million lower than the total cost of ownership of the next closest bid.
“The government must draw a master plan of where the infrastructure will be constructed as well as its phases,” Sothi suggested in making a smoother 5G roll-out.
“It should not allow the party which is doing the project to make the plans, and this could be shared out to different telcos.”
It is also notable that during the course of interviewing Sothi for this article, the call over WhatsApp via 4G connection had dropped out twice, making the issue at hand even more evident.
However, it was not immediately clear if it was due to the app or 4G connection.
In response to the experience, Sothi said the government should be stricter in holding the telcos accountable for not delivering their 4G speeds as promised.
“We have the technology to handle this, the regulators can measure what is given (by telcos in terms of 4G speeds and take action). Unfortunately, we have regulators who are uncomfortably close to the regulated,” he said.
“Regulators should be more consumer-friendly.”
Consumer Association of Penang president Mohideen Abdul Kader said although Malaysia has to jump onto the 5G bandwagon, it cannot neglect its existing 4G internet network, which has much to be desired.
Mohideen said although 4G technology has been around for nearly a decade, pockets of urban areas have been experiencing difficulties in getting good internet connectivity. He said the situation is worse in rural areas.
“Service providers should take responsibility in ensuring good internet connectivity.
“Malaysia’s internet charges are not comparatively cheaper than Vietnam, Thailand, and Indonesia. Consumers are having a raw deal.
“Is it complacence and a lack of business competition that lulled the larger Malaysian telco operators to allow a drop in internet speeds?”
He added that the Malaysian Communications and Multimedia Commission, as the main regulator, should intervene and ensure that the internet services are improved. – The Vibes, December 18, 2021
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