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The government, through the Malaysian Communications and Multimedia Commission, is in discussion with local internet providers and industry players on the setting up of the country’s own Internet Exchange, Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said here Monday.
The discussions on the independent Internet Exchange, the Minister said was expected to be wrapped up by the end of the year, making surfing on the internet cheaper and at the same time breaking the monopoly of internet service providers in the country.
Currently, all Malaysian internet traffic goes to either Singapore or the US.
Two years ago, there was an attempt to set up Malaysia’s own IEP by Digital Equipment Corp and a local firm Wargamedia Sdn Bhd, but this project failed to take off.
“The local telecommunications companies, especially internet service providers, cannot fight the trend of emerging technologies in their industry.
“Then there is also the issue of monopoly by some to provide a certain service…people (private companies) will always find a way to beat the monopoly. Monopoly will certainly not benefit the industry,” Dr Lim said.
Speaking to reporters after launching TravelFon, an initiative of REDtone International Bhd, here, Dr Lim said realising that the usage of the internet was a booming business, the government had decided on the establishment of such an independent internet exchange.
“We must also attract international internet cables to the exchange and more cables in the exchange means cheaper surfing cost. Presently Malaysia’s internet traffic is going to the US or Singapore and they are charging a bomb,” he added.
He said there was now a need for the government to push internet service providers and other relevant parties in the industry to set up this exchange to curb the foreign outflow of the ringgit.
“I have made up my mind and you know when I make up my mind I push for it. This is what I am going to do with the internet exchange. The internet exchange must be independent of any telecommunications company or internet provider…it must not be controlled by a single party. This will avoid monopoly. “The internet exchange can be run by a consortium of companies…do not force me to make a ministerial declaration for the industry to set up the exchange. We have given them (industry) all the necessary explanation and now it is up to them to execute,” the minister said.
He said once the exchange is established, then the industry could attract international cables, which were now landing in Singapore, to Malaysia.
“We should have done this a long-time ago. But people who have moved in front, hold a very narrow minded view and hold the monopoly (of providing internet connectivity)…they are holding consumers at ransom,” he said.
Dr Lim said local telcos need to keep in touch with the fast growing telecommunications industry, failing which would result in them “going out of business.”
On another note, Dr Lim said the government would not extend the December 15 deadline fixed for mobile telecommunications companies to register their pre-paid users.
He said todate out of the nearly 18 million pre-paid mobile phone users in the country, about 10 million had registered.
“There are another six to eight million pre-paid users who have yet to register. We have done enough…there would be no postponement or extension of the deadline. After Dec 15, the user would be given two weeks before the pre-paid line is terminated,” he added.
