Poor 3G services under MCMC scrutiny, a move in right direction

3G services under MCMC scrutiny - Telcos using 900/1,800 Mhz instead of 2,100 Mhz



PETALING JAYA: The Malaysian Communication and Multimedia Commission (MCMC) has issued a stern warning to cellular companies that are providing 3G services on lower-than-agreed bandwidth, causing a deterioration in the quality of 3G services.

Most of the 3G players are using the 900 megahertz (MHz) and 1,800MHz frequency bands to roll out 3G services instead of the primary 2,100MHz band meant for 3G.

The regulator has given the players till the end of the year to come up with a plan to rectify the situation or face hefty fines, given the rise in the number of complaints regarding the capacity and speed of 3G services.

“We did an audit over three months ago and this has come to light. They have been putting up 3G coverage but not capacity and speed, and hence, the 3G services are slow. We issued the warning two weeks ago and have given them till the end of December to come back to us or action will be taken against them,” MCMC chairman Datuk Mohamed Sharil Mohamed Tarmizi told StarBiz yesterday.

He, however, added that “some of them have taken steps, but a lot more needs to be done”.

The rationale for telco operators to roll out their 3G on the lower bands is simply because it is more cost-effective to do so, according to telco experts.

Simply put, the higher the band, the higher the data capacity that can be carried on that network. However, the higher bands have smaller areas of coverage, and hence, the investment has to be higher.

“Some players have economised on investing in 2,100MHz to push coverage instead of higher capacity and speed. They are trying to compromise on quality. They may be stretching their dollar by not putting in enough base stations despite having made a lot of money all these years,” said an telco expert.

Another added that “consumers need more bandwidth for tablets than phones and this means the players may have compromised on the quality of service. Perhaps, some of the players had underestimated the tablet demand and had under-provisioned”.

The four recipients of the 3G spectrum are Celcom Axiata Bhd, DiGi.Com Bhd, Maxis Bhd and U Mobile.

The four players did not respond to queries from StarBiz as at press time.

“The concern is two-fold – first, there is concern about the quality of service of existing customers on the 900MHz/1,800MHz spectrum.

“Second, and more important, is the fact that rolling out 3G on any spectrum other than 2,100MHz could mean under-utilisation of the 3G primary band given to the players by the Government to provide maximum benefit of higher data capacity and speed to consumers,” said the expert.

“The onus is now on the regulator to find out if the Internet data rates charged for 3G services commensurate with the actual delivery of speed and capacity. If not, then consumers should not be burdened.”

Late last year, MCMC also dished out parts of the 2,600MHz spectrum band to eight players, including the main incumbent telco operators, to roll out 4G/ long-term evolution or LTE services.

Some of the players have asked to be allowed to upgrade on the 1,800MHz, on top of the 2,600MHz. Again, this would be a move to provide less capacity, but the regulator does not want a repeat of the 3G debacle.

Sharil said: “We have mandated that for every two base stations on 1,800MHz, operators will have to roll out one base station on 2,600MHz, as they have to provide adequate capacity and not coverage alone.

“The lower-bandwidth base stations are to accommodate for some handsets usage.”

MCMC has been making serious efforts at raising the quality of services for consumers in Malaysia.

Last year, it conducted a survey and found that the rate of dropped calls was bad among certain operators, and highlighted its findings.

- Contributed by  B K Sidhu The Star Nov 28 2013

MCMC moving in right direction - Operator must live up to their 3G claims!

KUDOS to the Malaysian Communications and Multimedia Commission or MCMC for checking on what the operators have been doing on 3G deployment.

The commission seems to be moving in the right direction in checking on the quality of services, which is a concern, and said to be lagging behind Hong Kong, Seoul and even China.

Over two months ago, the regulator did an audit check and came up with some interesting news. It found out that most of the 3G operators have not been using the 2,100 megahertz (MHz) spectrum fully to roll out 3G services. Instead, some have been using the lower bands, 900MHz and 1,800MHz, to roll out the services. It’s more economical to do so. They have been providing 3G coverage but not real 3G speed and capacity.

3G is meant to give you higher speeds just like 4G can give you super-fast data speed.

3G has been in the country for nearly a decade. The first two blocks of 2,100MHz spectrum were awarded to Celcom Axiata Bhd (then part of Telekom Malaysia Bhd) and Maxis Bhd in 2002.

Four years later, in 2006, Time dotCom Bhd (TDC) and MiTV Corporation Sdn Bhd got two more blocks of the same spectrum. MiTV’s spectrum is used by sister company U Mobile, while TDC, as soon as it secured the spectrum, sold it to DiGi.Com Bhd for a handsome profit.

To be fair, 3G has never taken off despite the hype. In Europe, operators paid hefty sums for the spectrum, while here, it was for a small fee.

But a decade later, finding out that the operators are still on a bandwidth that is lower than 3G and claiming to be offering 3G services makes us wonder if we have been overcharged.

This, perhaps, explains why there have been complaints about the 3G service; the speed and capacity have not been there, and it has been patchy and unreliable for most users.

There is no denying that the operators have been investing. It is not easy for them, as they have to deal with all kinds of challenges and authorities to get the service to the customer. However, when they claim it to be 3G service, it should be 3G service.

Two weeks ago, the operators were issued a stern warning to make the change or face hefty fines. One operator is rushing to do so, while the others are still waiting. They have till the year-end to face the regulator.

It is also unfortunate that it has taken the regulator so long to find out, as now the march is towards 4G and consumers will never find out how much extra they would have paid for the 3G service if it is not 3G speed and capacity they are getting.

But then, had the regulator not found out, consumers would not have found out, too. This tells us a lot about the state and quality of services, the promises and marketing pledges made, the pricing, the spectrum usage and all the money paid by consumers for what they had thought were 3G services.

However, as consumers, what do we benchmark our 3G services against? The onus is on the regulator to both set the benchmark and make sure it is adhered to. When we pay 10 sen for a product, we do not expect a five-sen product.

This is unfortunate, especially since our operators make among the highest earnings before interest, tax, depreciation and amortisation margins in the world. When they make so much, they should not compromise on service in the pursuit of profits.

Consumers should get a fair deal for what they are paying for. If indeed there has been any inconsistency, then the parties involved should be gracious enough to admit it and compensate the consumer.

Contributed by B K Sidhu The Star Nov 29 2013
Business Editor (News) B K Sidhu feels the local regulator should follow what the European regulators do; force operators to drop broadband charges.

China monitors US bombers in defense zone

 China's defense ministry spokesman Geng Yansheng on Wednesday said the country has observed US B-52 bombers flying in the newly established air defense identification zone over East China Sea.


http://english.cntv.cn/program/newsupdate/20131128/102355.shtml

Geng said the US aircraft flew south and north along the eastern border of the East China Sea Air Defense Identification Zone from 11:00 a.m. to 1:22 pm Tuesday, about 200 km to the east of the Diaoyu Islands.

The Chinese army monitored the entire process, carried out identification in a timely manner, and ascertained the type of aircraft.

"We need to stress that China will identify every aircraft flying in the air defense identification zone according to the country's announcement of aircraft identification rules for the air defense identification zone," Geng said.

"China is capable of exercising effective control over this airspace," Geng added.

China announced the East China Sea Air Defense Identification Zone on Saturday. The US State Department and certain officials expressed concern after the announcement.

Pentagon spokesman Colonel Steven Warren said Tuesday that the US conducted a training exercise that had been planned for a long time. It involved two aircraft flying from Guam and returning to Guam.- Xinhua

US B-52 bombers challenge China's new ADIZ

China's latest move in defending its sovereignty is facing opposition from other countries. Two US B-52 bombers have flown over the Diaoyu Islands in the East China Sea, in defiance of the air defense identification zone set on Saturday. China is taking a measured response, while stressing that it has the ability to manage and control its airspace.

http://english.cntv.cn/program/china24/20131128/100592.shtml

Just days after China announced the establishment of an air defense identification zone, or A-D-I-Z. The US sent two B-52 bombers through the zone and over the Diaoyu Islands

China’s defense ministry asserted it has the ability to control the airspace. It says it identified the aircraft and monitored the entire two hours and 22 minutes.

The US said it was a long planned training mission, and put its own spin on the matter to fault China.

"This unilateral action appears to be an attempt to unilaterally change the status quo in the East China Sea. This will raise regional tensions and increase the risk of miscalculation, confrontation, and accidents. We have made this case to China." US State Department spokeswoman Jen Psaki said.

Japan, which claims the Diaoyu Islands as its territory, was quick to join its ally.

“Our stance is that China’s move cannot be accepted, and so I think the US is also dealing with the issue with the same stance.” Japanese defense minister Itsunori Onodera said.

Aircraft flying through an A-D-I-Z must report a flight plan, maintain two-way radio contact and respond to identification inquiries, or face defensive emergency measures.

More than 20 countries and regions use such zones, including the US and many of China’s neighbors.

The Foreign Ministry called for calm, saying the zone does not target any country.

"China’s establishment of an air defense identification zone over the East China Sea is a legitimate exercise of the right of self-defense. It’s not aimed at any particular country or target. So we hope that the countries concerned will not overreact or panic over the event." Chinese Foreign Ministry spokesman Qin Gang said.

China has also lodged protests over US and Japanese criticism. The country says the establishment of the zone has a sound legal basis and is in accordance with common international practice.

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China sets up air defence zone over East China Sea, a strategic move

Are you settling PTPTN student Loan? Over 45,000 defaulters settling out of records total of 412,245

OVER 45,000 National Higher Education Fund (PTPTN) loan defaulters have come forward to settle their unpaid loans totalling RM23.44mil.

Deputy Education Minister Datuk Mary Yap said these defaulters had come forward to settle their dues following legal action initiated against 132,801 defaulters which included blacklisting them with immigration authorities.

“Following this, some 45,550 loan defaulters came forward to negotiate loan repayment with the PTPTN administrator with the amount at RM23.44mil,” she said in reply to a question by Wan Hassan Mohd Ramli (PAS-Dungun).

Yap said graduates were given 16 months upon graduation to secure a job and start loan repayment, after which three-reminders would be issued to defaulters over a period of six months before legal action is initiated against them.

“However, legal action and blacklisting them with the immigration authorities would only be the last resort. What is important is for them (loan defaulters) to come forward to negotiate their repayments,” she added.

To a supplementary question by Datuk Nawawi Ahmad (BN-Langkawi), Yap said there was no “automatic mechanism” to deduct the salaries of defaulters.

However, Yap said defaulters employed by the Public Service Department would be easily identified and issued notices to repay their loans.- The Star Nov 26 2013

PTPTN records total of 412,245 loan defaulters, says Muhyiddin 

The deputy prime minister said, of the total, Malays formed the largest number of defaulters at 328,550, followed by the Chinese (55,445) and Indians (28,250).

He said there were currently 1.24 million PTPTN borrowers when replying to a written question by Lim Lip Eng (DAP-Segambut) at the Dewan Rakyat here today.

Muhyiddin said the enforcement implemented included blacklisting errant borrowers from going overseas, as well as summonses to raise defaulters' awareness, understanding and responsibility to repay their loans.

He clarified that such action was not made arbitrarily, without any room for borrowers.

“Based on its existing work procedure, PTPTN has been flexible in recovering loans from borrowers before they are blacklisted,” he said, adding that the move to blacklist, via immigration department, was a last resort to remind hardcore defaulters to repay their loans.

Muhyiddin said PTPTN had opened 12 state PTPTN offices, two one-stop centres and four branch offices at strategic locations to enable borrowers to negotiate loan settlement.

Apart from that, he said PTPTN had also given borrowers an incentive as announced by Prime Minister Datuk Seri Najib Tun Razak in the 2013 Budget last year.

It involved a 20 per cent discount for the settlement of the entire loan from October 1, 2012 to September 30, 2013 while PTPTN would continue to give a 10 per cent discount annually for those who made consistent repayment according to schedule from October 1, 2012.

Meanwhile, Muhyiddin said 1.36 of the 1.42 million or 88.9 per cent of the Muslim pupils from Year One to Year Six could master Jawi.

“There is no data on non-Muslim pupils who are literate in Jawi as Jawi is taught in Islamic Education,” he said. He was replying to a written question by Er Teck Hwa (DAP-Bakri) who wanted to know the number of trained teachers with qualification in written Jawi, as well as the number of Bumiputra and non-Bumiputra pupils who were literate in Jawi. — Bernama

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Group buying giant Groupon, CEO Joel Neoh

Working conflict: ‘I tend to think of my work as leveraging conflict rather than managing it and often times, we learn the most through conflict,’ says Joel Neoh of Groupon Malaysia.

From runway model to successful entrepreneur, Joel Neoh will give any 30-year-old a run for their money.

AT the age of 20, he earned his first million – after founding a fast-growing student agency set-up. Three years later, he emerged as the winner of Malaysia’s first corporate reality TV programme, The Firm, despite being the youngest contestant on the show.

Joel Neoh has come a long way since. Now, he is an integral part of one of the world’s fastest growing companies, Groupon (as listed by Forbes in 2010).

Apart from juggling his day to day as the CEO of Groupon Malaysia, Neoh heads Groupon Asia Pacific, overseeing operations for the public-listed group-buying website company in 11 other countries: Japan, Australia, New Zealand, Korea, Singapore, Hong Kong, Taiwan, India, Indonesia, Philippines and Thailand.

The mechanical engineering graduate, who also modelled part-time during his university days, has been named Ernst & Young’s Entrepreneur of the Year 2012, Asia’s Top 10 Young Entrepreneurs by Top 10 of Asia magazine, and most recently, Young Global Leader 2013 by the World Economic Forum. Earlier this year, as a result of his professional achievements, Neoh was awarded the Malaysian Service Medal by the Prime Minister, Datuk Seri Najib Tun Razak.

Appointed as a key line-up speaker for The London Speaker Bureau and Asian Business Angel Forum in 2012, Neoh now also serves on the Advisory Board for the School of Business, Monash University.

That’s a whole lot to take in, for someone who just turned 30.

“Growing up, I was always asking a lot of questions; always challenging the status quo. I must’ve annoyed a lot of people. But looking back, I think that’s one of the key criteria of an entrepreneur – curiosity,” he said over a phone interview, undoubtedly squeezed in between his daily meetings.

In 2006, Neoh had set up Youth Malaysia, a non-government organisation that managed events for youths. After the successful conceptualisation of YouthSays, a survey platform for Malaysian youths (which become a big revenue churner), the organisation went on to organise Youth 08 – arguably the largest youth festival at that time.

After organising its third youth festival in 2010, Neoh realised that the Internet offered great business growth opportunities and that e-commerce, especially, was the holy grail of the World Wide Web.

In September 2008, Neoh founded GroupsMore, a Malaysian e-commerce company based on the business model of US-based Groupon Inc. Within three months, GroupsMore was catering to over 20,000 customers.

The company’s seemingly overnight success eventually caught the attention of Groupon Inc and instead of filing a lawsuit for copyright infringement (which Neoh feared when he first heard from them), the American corporation expressed interest in collaborating with its Malaysian counterpart.

In January 2011, GroupsMore was acquired by Groupon for an undisclosed sum and Neoh’s company became known as Groupon Malaysia. Under Neoh’s stewardship, Groupon Malaysia has become the leading social e-commerce platform in Malaysia and was dubbed the fastest growing country in Groupon for 2011.

“I’m always looking to take up the biggest challenges because I know that would give me the largest opportunity for growth and learning. It was difficult at first – while my friends were excited that it would soon be payday, there I was, worrying about whether I had enough money to pay my staff. My journey as an entrepreneur has evolved and every day is a challenge. But I believe in never, ever giving up,” Neoh opined.

Neoh also believes in this: recruiting people who are significantly better than himself. “I make it a point to hire people who have better skills so that we can all learn from each other. So far, we’ve brought some of the best talents onboard.”

Of course, doing that also requires the man to set aside his ego.

“It’s hard, but it must be done. There’s no point in hiring people who aren’t better than I am, because all I’d would get be team that listens to me, without really challenging what I have to say. I tend to think of my work as leveraging conflict rather than managing it and often times, we learn the most through conflict.”

Neoh is also big on giving back to the society, and has been championing for the larger group to take on more of such activities. Most recently, he pooled resources to raise over USD$100,000 (RM318,700) within a week for the victims of Typhoon Haiyan in the Philippines.

In retrospect, Neoh revealed that he had a hard time convincing his family, particularly his mother, about his passion for entrepreneurship.

“My mom had no clue what I was up to – she must’ve had a hard time explaining what I did to the relatives. I was constantly trying to convince her to let me become an entrepreneur, and that was also part of the reason why I joined The Firm. After I appeared on the show, she started burning DVDs of the episodes for all my aunts and uncles.”

Still, Neoh was quite sure that his mother had yet to catch on to the bigger picture.

“It was not until a year ago when I bought her an iPad that it finally struck her, because her friends kept telling her to go onto the Groupon website. I think the best way for my mom to understand what I did was to be an end user of the service itself. For me, the most rewarding thing is when the people you care about start using and believing in the things you build.”

- Contributed by Lee Mei Li The Star

Ugly business of Pilipinos kidnapping in Malaysia

It is understandable that family members of a hostage would want to see their loved one released as quick as possible but paying the ransom only encourages the crime to flourish. 
 
Last week, the whisper among the intelligence operatives in Sabah is that the asking price for the Taiwanese tourist kidnapped from Pom Pom island is RM10mil.

When I heard that was the amount demanded for the release of 58-year-old Chang An Wei abducted at gunpoint after her 57-year-old husband Hsu Li Min was shot dead by Filipino gunmen in the exclusive island resort off Semporna town on Nov 15, I worried about the consequences of paying for her freedom.

I tweeted: “If ransom is paid for Taiwanese hostage abducted from Pom Pom, $$$ will be invested into powerful boats & guns. Expect more kidnappings.”

Intelligence operatives also speculated that Chang was on the way to Jolo or was already on the island, the kidnap capital of the Philippines.

Kidnapping is big business in Jolo.

Last year, in Zamboanga City in southern Philippines, I had a chat with Lee Peng Wee. The tycoon made his money through seaweed grown mostly in kidnap-prone Philippines provinces such as Sulu and Tawi Tawi.

He was instrumental in securing the release of nine Sabahans kidnapped in Sipadan and held in Jolo in 2000. The Sipadan kidnapping was big international news – 21 hostages were abducted, including 10 tourists from Europe and the Middle East.

At his residence where 12 years ago he and Malaysian negotiators strategised on buying the Malaysians’ freedom, I asked him how the situation in Jolo was.

“It is the same. They kidnap two and release one. They kidnap three and release two,” he said, referring to Filipinos abducted in southern Philippines.

“Kidnapping is easy money. These people do not have a steady livelihood.”

The typical modus operandi is: kidnap-for-ransom group will abduct rich individuals in southern Philippines and they then sell the human commodity to bandits (some using the name of Abu Sayyaf) in Jolo. The island is so lawless that it is a “holding pen” for hostages.

Many in Malaysia assume that the Filipino kidnap-for-ransom group only targeted the east coast of Sabah. Wrong.

On Tuesday, JV Rufino, the Director for Mobile for the Inquirer Group in the Philippines, tweeted a link to a Philippines Daily Inquirer story headlined, “Military: Abu Sayyaf behind Sulu treasurer’s abduction”.

In Jolo, Sulu provincial treasurer Jesus Cabelin was allegedly taken by a group led by Julli Ikit and Ninok Sappari, who is a member of the Abu Sayyaf, according to the Philippines Daily Inquirer.

It reported that Sappari was “linked to several incidents of abduction in the island-province, including the March 2012 disappearance of Indian national Viju Kolara Veetil and six health workers of the Autonomous Region in Muslim Mindanao”.

“The victims were later freed after ransom had been allegedly paid,” the report continued.

Cabelin was the fourth kidnap victim in Jolo since Oct 22. Kidnapping is common in the Philippines especially in Jolo and nearby provinces.

However, it is rare for these groups to operate outside of Filipino waters. If you count the numbers of actual kidnappings at resorts in the east coast of Sabah, there are only three – Sipadan in 2000, Padanan in 2000 and Pom Pom in 2013.

(This count does not include kidnapping cases such as the abduction of the cousins who owned a bird’s nest farm in Lahad Datu or seaweed farm owners in Semporna).

One way to stop kidnappings by Filipino armed groups inside Malaysian waters is to stop paying for ransom.

Ransom was paid for all the 21 Sipadan hostages except Filipino cook Roland Ullah who “walked out” of captivity in 2003.

The then Libyan leader Muammar Gaddafi bankrolled the payment for European and Filipina hostages and Malaysian businessmen raised the money to free the Sabahans. (The ransom for the first hostage – a Malaysian – released was paid for by a Filipino tycoon who described to me the payment as “small change”.)

At the back of my mind during the Sipadan hostage crisis, I was worried that ransom payment would only encourage kidnap-for-ransom groups to launch more kidnappings in my home state of Sabah.

Nevertheless, if you were a family member of a hostage, you would understand that not paying ransom is an option you would not consider.

I’ve met the Malaysian hostages twice while they were held by the Abu Sayyaf and I’ve spoken to almost all their family members, so I understand the agony they faced.

The negotiation for the release of the hostages dragged until Aug 20, 2000, when the last of three abducted Malaysians were released. Less than a month later, Filipino gunmen raided Padanan island and abducted three Malaysians on Sept 10.

This time the mood from the top was “no negotiation” with the kidnappers. Kuala Lumpur had learnt its lesson – paying ransom for hostages only encouraged the crime to flourish.

The then Philippines President Joseph Estrada ordered a military offensive on the Padanan kidnappers in Jolo. The three Malaysians were released after 46 days in captivity following a military operation.

That was the last raid by Filipino gunmen on a Malaysian island until the killing and kidnapping in Pom Pom.
Paying for Chang’s ransom will only encourage more kidnappings in Malaysian waters.

Contributed by One Man's Meat Philip Golingai