28. THE NATIONAL TELECOMMUNICATION POLICY (1994 - 2020)

PREFACE

1. This  document  outlines the objectives,  strategies  and
  features of the National Telecommunications Policy  (NTP)
  for  the  1994 - 2020 period. This policy was  formulated
  to  ensure that the growth of telecommunications services
  and  its  use of technology support national development,
  in line with national aspirations.

2. The  telecommunications sector is expanding rapidly  with
  the  introduction of the latest services  and  equipment.
  This development has become a catalyst for the growth  of
  the  nation's  commercial  and  industrial  sectors.  The
  integration   of  the  telecommunications  and   computer
  industries   also  resulted  in  the  rapid   growth   of
  sophisticated   technology  which   ushers   in   a   new
  Information  Technology-based century. In  addition,  the
  telecommunications  sector as  an  industry  in  its  own
  right  has gone through rapid growth too, and contributed
  much   to   the   nation's  economic   development.   The
  formulation  of the NTP is important because it  provides
  guidelines  for the development of the telecommunications
  sector  in  Malaysia  as it faces future  challenges  and
  supports  the  attainment  of the  objectives  of  Vision
  2020.

BACKGROUND

3. The  telephone and telegraphic services were specifically
  introduced  after the First World War  to  help  run  the
  government's  administrative system.  Later  it  expanded
  its  role  to  the  business and industrial  sectors  and
  later  for  public use. Starting from a  simple  network,
  this  sector  has  developed to  become  a  sophisticated
  telecommunications  network, using optical  fibre  cable,
  microwave  and satellite systems to link rural and  urban
  areas throughout the nation and with the whole world.

4. The   growth   rate  in  the  use  of  telecommunications
  facilities has increased tremendously, especially in  the
  increasing  number of telephone subscribers. At  the  end
  of  the  Second Malaysian Plan (1970 - 1975), there  were
  169,600  subscribers.  This  figure  increased  to   1.58
  million  subscribers  at the end of the  Fifth  Malaysian
  Plan  (1986  -1990). The number of telephones  for  every
  100 persons increased from 6.5 in 1985 to 12 in 1993.

5. Besides the growing number of customers who make  use  of
  telecommunications   facilities,  other   services   also
  experienced   rapid   growth   such   as    the    mobile
  telecommunication  radio, trunk radio and  paging  system
  as   well   as  data  services  which  include  switching
  services,   datel,  telefax   and   other  services.  The
  introduction  of  he  latest value-added  and  downstream
  telecommunication  services spur further  growth  in  the
  nation's manufacturing and economic service sector.

6. Development of the public telecommunications  network  is
  not  only confined to the urban areas. Efforts to  expand
  public telecommunications network to the rural areas  are
  actively   carried  out.  The  total  number   of   rural
  telephones  in 1990 was 190,000 and this is  expected  to
  increase  to 351,000 in 1995, a 11.5% growth.  The  rural
  telephone  line penetration rate is expected to  increase
  from 1.8 telephones for every 100 persons in 1990 to  3.1
  telephones for every 100 persons in 1995.

7. The   expansion  and  development  of  telecommunications
  services  are important for the growth of the  industrial
  and   service  sectors.  To  modernise  and  to  increase
  telecommunications  service growth  rate,  a  competitive
  element   was  introduced  in  stages.  The  first   step
  involved  the incorporation of Telekom Malaysia  in  1987
  as  a government-owned company. Later, new companies were
  licensed  to  provide  certain services  such  as  mobile
  cellular  telephones,  pagers,  trunked  radio,   two-way
  radio system and other value-added services.

8.    The  Energy, Telecommunications and Posts Ministry  is
  responsible for  the  formulation  of  policies  and  the
  planning   of   future   long-term    course    of    the
  telecommunications    sector,    while   the    Malaysian
  Telecommunications Department (JTM)  is  responsible  for
  the supervision of the  telecommuni cations  sector.  The
  JTM also encourages competition and  ensures  an  orderly
  and  efficient  development  or  the   telecommunications
  industry.  These  are in  addition to  the  work  done in
  licensing and enforcement.


       THE NATIONAL TELECOMMUNICATION POLICY
                (1994 - 2020)



9. The  NTP  will function as a catalyst towards the  growth
  and  development of the telecommunications sector in  its
  efforts  to  become a modern, sophisticated  and  dynamic
  sector.

10.The   NTP   will  formulate  general  outlines  for   the
  development of the telecommunications sector not only  at
  national  but  also  at international levels.  This  will
  serve  as  guidelines to all parties  involved  including
  providers,  investors  and  the  Government  particularly
  with  regards  to  the requirements of investment,  human
  resource  development,  network and  service  facilities,
  absorption   of   new   technology   and   research   and
  development.

11. At  the  national  level,  the NTP  will  coordinate  the
   emergence  of  a  competitive atmosphere  in  an  orderly
   manner   to  ensure  the  optimum  use  of  the   country
   resources.  For  the  domestic  service,  the  NTP   will
   outline  the  creation of quality, high technology,  cost
   effective  and sophisticated telecommunications  services
   at par with that found in developed countries.

12. In  the  international arena. the NTP  will  ensure  that
   Malaysia  is regarded as a competitive telecommunications
   service  supplier  and  a  premier  market  leader  known
   throughout the Asia Pacific region and the world.


      THE MISSION AND OBJECTIVES OF THE NATIONAL
            TELECOMMUNICATIONS POLICY


13. Mission Statement

    The  NTP  will be the main catalyst towards the  creation
   of an information-rich and intelligent nation.

14. The  objectives  of the NTP are divided  into  macro  and
   micro objectives.

   14.1 Macro Objective
 
       The   macro   objectives   supports   the   National
       Development  Policy is aims of national  unity.  and
       integration  by encouraging interaction between  the
       races    and   regions   through   telecommunication
       facilities and services. In addition, the  NTP  also
       helps  to realise the objectives of Vision  2020  in
       creating  an  educated and information-rich  society
       through  the application of modern and sophisticated
       telecommunications  network. The  dissemination  and
       expansion  of information technology will produce  a
       society   capable   of  contributing   towards   the
       development   of  new  technology  to  enhance   the
       country's  economic and industrial  growth.  Besides
       information  technology,  the  application  of   all
       types   of  telecommunications  technology  in   all
       sectors of the nation's economy will be enhanced.

   14.2 Micro Objective

        The micro objectives are for the:

        14.2.1  Provision   of   modern,   sophisticated  and
               quality   communications   services   at    a
               reasonable cost.
       
       14.2.2  Ensuring that telephone services are expanded
               to  the  rural  and  urban  population  at  a
               reasonable cost.
       
       14.2.3  Ensuring     that   the    telecommunications
               infrastructure is adequate and  effective  in
               supporting  the  country's  industrialisation
               efforts.
       
       14.2.4  Encouraging   the   growth   of   value-added
               services.
       
       14.2.5  Ensuring  that  human resource development is
               in    tandem   with   the   needs   of    the
               telecommunications sector.
       
       14.2.6  Ensuring  that local manufacturing industries
               for  the manufacturing of  telecommunications
               equipment continue to expand and grow.
       
       14.2.7  Ensuring  the  use  of local products by  the
                telecommunications sector.
       
       14.2.8  Encouraging   research  and   development  (R
               &  D)  to  facilitate the absorption  of  new
               technology  and to upgrade telecommunications
               facilities and services.
       
       14.2.9  Promoting   better   ties   between   nations
               towards   making  Malaysia  an  international
               telecommunications hub.
       
       14.2.10 Encouraging   the  healthy  participation  of
               telecommunications    companies    in     the
               international market and investment in  other
               countries      in     the      fields      of
               telecommunications.
       
       14.2.11 Ensuring   that   radio    telecommunications
               spectrum  resource management is administered
               in an effective and fair manner.
       
       14.2.12 Encouraging  the  active   participation   of
               bumiputera entrepreneurs in  the  development
                of all sectors of telecommunications, in line
               with  the  government's  policy to  create  a  
               Bumiputera  Business and Industrial  society.
       
                        STRATEGIES
                             

15. The   close  relationship  and  cooperation  between  the
   Government  and  private  sector  are  critical  to   the
   development  of  the telecommunications  sector  and  the
   realisation   of   the   objectives   of   the   National
   Development  Policy. Therefore, the NTP's strategies  are
   based  on the Government-Private sector synergy,  working
   together  to  create  a modern, sophisticated,  efficient
   and   productive  telecommunications  sector  in   making
   available  services  to every segment  of  society  at  a
   reasonable  cost. The following strategies are identified
   to help attain the objectives of the NTP.

   15.1 Expansion   of   Services  in  a  Systematic   and
       Comprehensive Manner

       15.1.1 The target of the  telephone  lines  penetration
             rate  for  the nation by the year 2020 is  fixed
             at  50  telephones  for every 100  persons.  The
             rate  is  fixed at 25 telephones for  every  100
             persons for the rural areas. This target  is  to
             be   achieved  through  an  increase  in   basic
             facilities,    an    expansion    of    existing
             telecommunications  network  and  provision  for
             new ones.
     
      15.1.2 The Government will  license  certain  companies
             if  necessary  to supply certain  infrastructure
             and  services in accordance with the  long  term
             plans  of  the  telecommunications  sector.   An
             integrated  and  reliable  transmission  network
             that  covers  the whole nation  and  capable  of
             providing   voice,  video,  data   and   imaging
             services will be expanded .
     
       15.1.3 The   Government  will  revise  the  rates   and
             tariffs   for  all  telecommunications  services
             from  time  to  time so that  the  cost  of  the
             services  is  reasonable and at par  with  those
             charged  by  neighbouring  countries   and   the
             international market.
     
      15.1.4 In  the  long   term,   the   telecommunications
             network  will  expand  to include  fibre  optic,
             microwave  network  and  satellite  systems.  In
             addition,   competition   in   the   supply   of
             telecommunications  network   infra-   structure
             will  be encouraged in an expanding market  that
             attracts a growing number of users.
     
      15.1.5 The   realisation   of  social   objectives   in
             particular   to   increase  and  upgrade   rural
             telecommunications  facilities   will   not   be
             neglected,     and    indeed    all     licensed
              telecommunications  companies   especially   the
             carrier-network  provider  are  responsible   to
             achieve this end.

   15.2 Development  of  a Strategic and Export-Oriented
       Manufacturing Industry

       15.2.1 To   strengthen  the  nation's  economic  growth
             and    spur   technological   transfer,    local
             manufacturing       and       assembly        of
             telecommunications  equipment  are   encouraged.
             Besides ensuring that technological transfer  is
             continuous   and  to  provide  more   employment
             opportunities,   the   local  telecommunications
             industry  is  expected to gear  itself  for  the

Di pos oleh Arbain Muhayat pada 20 December 2008