Memorandum of Understanding between SACOFA Sdn Bhd and PT Super Sistem Ultima for usage of a network of undersea fibre-optic cables linking Malaysia, Singapore, and Indonesia at the 13th World Islamic Economic Forum last year.
Sacofa Sdn Bhd (Sacofa), Sarawak’s leading telecommunications infrastructure company, has an important part to play in the state’s journey towards developing the digital economy here.
Sacofa was incorporated on July 11, 2001 with the primary objectives to build and expand the provision of telecommunication network infrastructures throughout Sarawak.
To facilitate Sacofa in achieving its objectives, the state government granted the company with the exclusive right to construct, own and mangae the communication infrastructure on the concept of sharing basis.
In the Sarawak Digital Economy Strategy (2018 to 2022) foreword, Chief Minister Datuk Patinggi Abang Johari Tun Openg said he saw the development of the digital economy to be a collaborative effort between the government, the private business sector and the people of Sarawak.
“The government’s role is to provide basic but necessary infrastructure to build the digital economy. In the urban setting, the digital infrastructure is adequate for building digital business and other commercial applications,” he said.
“The challenges in building the digital infrastructure tends to increase going into the more rural and remote areas of Sarawak. These challenges are worth taking up, for us to reach more remote areas and provide them an avenue to connect with the rest of the world, thereby creating greater economic opportunities.”
With the formation of Sarawak Multimedia Authority (SMA) last year, Sacofa congratulated the chief minister on this development, adding that the company fully supports the state’s ‘Digital Economy’ Policy and Vision.
The formation of SMA was realised following the passing of Sarawak Multimedia Authority Bill 2017 at the State Legislative Assembly on November 8, 2017.
SMA was subsequently launched by Abang Johari on December 13, 2017, along with the first version of the Sarawak Digital Economy Strategy Book, thus heralding the start of the digitalisation transformation of Sarawak.
“The Chief Minister through the creation of SMA has created the climate in which Sarawak can achieve this vision,” Sacofa managing director Zaid Zaini said in an exclusive email interview with BizHive Weekly.
“Telecommunications has predominately been a Federal government responsibility, so Sarawak should be proud of a Chief Minister that sees the importance of telecommunications in today’s world and is taking steps to improve every aspect for the benefit of the people.”
Zaid went on to note that infrastructure is only one component of achieving the state’s vision and it is critical to enable everyone to participate in the transformation.
“Creating SMA while identifying and elevating telecommunications and its importance to the same level as power and water will enable better planning and cohesion between property developers, infrastructure, service providers and all levels of authorities.”
Overview of Sacofa
As the infrastructure provider in Sarawak, Zaid said Sacofa has continuous engagement and works closely with the telcos who are ultimately responsible for provisioning service, to expand their coverage throughout the state.
“As Sacofa is a neutral provider, we work with all the telcos to share and reduce costs. This has enabled Sarawak to have amongst the highest ratios of tower sharing not just in the country but also regionally,” he said.
“The way this works is when a telco requests Sacofa to erect a tower in a particular area, the remaining telcos are then offered an opportunity to also occupy the tower. This in turn offers all the telcos greater coverage at a reduced cost and shorter deployment times, delivering greater choice to the Rakyat on what provider they can use.”
Sacofa’s fibre network connecting the towers and the telcos within Sarawak is also planned accordingly so that 4G services can be enabled wherever the telcos require.
“As an example of this coordination and planning, Sarawak was one of the first states in Malaysia for 4G rollout as many of Sacofa’s towers were already fibre ready. The state government had good vision in forming Sacofa because in a low density state not all areas are commercially viable.
“They understood that pure competition is not ideal to effectively maximise coverage in the state.”
As such, in addition to the Malaysian Communications and Multimedia Commission’s (MCMC) efforts, Sacofa has to embark in infrastructure driven projects – whether they are profitable or not – to improve the penetration rate in many of the rural areas. On better connecting Sarawakians, espeically in rural areas, and bridging the existing digital divide in the state, Zaid explained that it is a coordinated effort with both MCMC and telecommunication providers.
“Sacofa has been predominantly involved in infrastructure for wireless communication, for that Sacofa works with MCMC and the service providers to extend coverage throughout Sarawak.
“It is a coordinated effort and we as the infrastructure provider play a part as do the service providers and finally MCMC.
“MCMC plays an important role in funding rural areas where the telcos are hindered because of commercial constraints.”
In addition to this, Sacofa also initiates its own infrastructure driven projects such as in Kapit, Bakun, Lawas and Limbang where commercial considerations are removed from the decision-making process.
“Sacofa deploying fibre into these areas enables the telcos to provision 4G service where it would never be possible when relying on market forces and demand alone.”
SOFIA: The new platform for connectivity
A key highlight for Sacofa at the start of 2018 has been the launch of the company’s new platform Sacofa Open Fibre Infra Access (SOFIA), which will significantly raise the benchmark of high-quality broadband services in Sarawak.
SOFIA, which was launched by Abang Johari on January 27, 2018, is aimed at maximising the coverage of high-speed broadband throughout Sarawak in line with the Chief Minister’s vision of achieving high economic growth through Digital Economy.
This open fibre-optic infrastructure platform is a turnkey solution that enables retail service providers (RSPs) to immediately link-up directly to Sacofa’s fibre-optic network and offer high-speed broadband services to end-users at competitive rates.
With the rollout of SOFIA, RSPs will be able to provide services to residential areas, commercial and office buildings, small-and-medium enterprises, large corporations and public-sector offices.
According to Zaid, Sacofa has been working to bring this product to the market since 2015.
He highlighted that 2018 marks a significant milestone in Sacofa’s development as it expands from tower services and utilises its existing fibre network to move into fixed high speed broadband (HSBB) or fibre to the X (FTTX).
“SOFIA is Sarawak’s own FTTX network, totally open and a turnkey solution for any service provider to start offering service in Sarawak.
“Just as we do not expect every airline to open its own airport, SOFIA will enable any service provider to operate in Sarawak and not be constrained by the cost associated with infrastructure.”
Sacofa believed that in order to match broadband penetration, speed and pricing not only regionally, but also on a worldwide basis, competition is needed in the service provider industry.
“But in a large state like Sarawak, the infrastructure costs are a huge barrier to entry,” he said.
“SOFIA takes infrastructure costs out of the equation and allows the service providers to concentrate on innovative products and services that consumers can chose from.
“This choice for consumers can be based on packages, bundles, discounts, content and quality of service.”
He cited Singapore as one example often used as a benchmark when it comes to connectivity, speed and cost.
“Singapore, as well as many other markets, uses a model like SOFIA that gives this choice and power to consumers through common infrastructure to each premise.”
SOFIA is essentially an enabler as it allows existing service providers such as Celcom and Reach 10 to offer broadband services in Sarawak. It is anticipated to attract reputable international players such as MyRepublic via Datastream Technology Sdn Bhd (DST), which will bring more affordable and competitive prices to Sarawak soon.
On Celcom partnering with Sacofa and supporting SOFIA, Zaid said at a product briefing and luncheon in February 2018 that together, they have successfully enabled High-Speed Internet service at Eco Park, Samalaju.
“We look forward to connecting many more locations throughout the state and encourage other service providers to join us in this journey.
“SOFIA has allowed Celcom to provide FTTX service of up to 100 megabits per second (Mbps) in only its second market in Malaysia, the first being Sabah.”
With SOFIA in place and the entry of more service providers, Zaid emphasised at the launch of the platform that high-speed connectivity will be available everywhere and Sarawakians will be able to enjoy an enhanced internet experience.
SOFIA facilitates triple-play features consisting of Voice over Internet Protocol (VoIP), Internet Protocol Television (IPTV), and High-Speed Internet (HSI), which is a catalyst for increased adoption and utilisation of Internet of Things (IoT).
The platform has already been deployed in key areas in Sarawak such as Samalaju in Bintulu, Satok and The Isthmus in Kuching.
Sacofa is currently in the process of deploying the company’s fibre infrastructure across other areas in the state.
Abang Johari (third left) during Sofia’s launching ceremony at Kuching Waterfront, coinciding with the opening of DBKU 2018 Agenda. Seen with him are Local Government and Housing Minister Datuk Dr Sim Kui Hian (left), Abang Johari’s wife Datin Patinggi Datuk Juma’ani Tun Tuanku Bujang (second left), Zaid (second right) and Datuk Bandar of Kuching North Datuk Abang Abdul Wahap Abang Julai.
Other highlights from Sacofa
Sacofa recently signed a Memorandum of Understanding (MOU) with DST, a telecommunications icon in Brunei Darussalam through DST’s wholly-owned subsidiary DST International (B) Sdn Bhd to form a strategic collaboration to bring international broadband quality to Sarawak.
In a media release on the MOU on November 23, 2017, Sacofa had highlighted that this new partnership will further boost the implementation of high quality broadband services in the state, in line with the company’s vision of ‘connecting Sarawak to the future’.
Sacofa further highlighted that this is consistent with the state government’s vision for Sarawak, where all sections of society can realise the benefits of connectivity – no matter how remote they are, through wired or wireless means.
Zaid remarked in the media release that this partnership will be highly beneficial to broadband consumers in Sarawak as the synergy of activities will leverage on DST’s great partnership with MyRepublic, a highly reputable industry player in the broadband services arena.
He went on to note that DST, the largest telco in Brunei Darussalam, has a strong track record of providing consistent and reliable quality services in broadband and mobile services.
“Sacofa is especially pleased that DST’s stakeholding in MyRepublic will add significant value to this partnership as MyRepublic is a well-known market disrupter which has changed the landscape of the industry by providing high speed broadband at competitive rates,” Zaid told BizHive Weekly.
“As envisaged, this MOU demonstrates how international brands and companies are able to enter the Sarawak market and provide choice to Sarawakians by utilising the SOFIA network.”
Prior to the MOU with DST, Sacofa had also signed a MOU on November 21, 2017 with PT Super Sistem Ultima (PT SSU), a telecommunications infrastructure specialist from Indonesia, for the collaboration of usage of an undersea fibre-optic cable linking East Malaysia with Peninsular Malaysia, Singapore and Indonesia.
Sacofa’s media release on this development revealed that the interconnectivity is expected to enhance the broadband experience particularly for Bruneians, East Malaysians and Indonesians in the Riau and Kalimantan areas, who will have access to higher broadband speeds.
“It is anticipated to be highly conducive to the implementation of high speed broadband services in Sarawak, and elsewhere in the region – across the island of Borneo and beyond,” the company stated.
“This is in line with Sacofa’s vision to improve connectivity and to bridge the digital divide between regions, communities, rich and poor, urban and rural.
“To achieve this objective, Sacofa is engaging new international partners, investing additional capital to lay metres of cabling, erecting new towers and providing additional infrastructural support.”
On what we can expect from Sacofa in the near term, Zaid revealed that another exciting launch for Sacofa and Sarawak will be SEAX-1, a submarine cable linking Singapore, Batam (Indonesia) and Sacofa’s Cable Landing Station (CLS) in Mersing, Johor.
“This will be the first submarine cable linking Malaysia and Singapore, enabling Sarawak direct linkage to Singapore, a regional hub for Data Centres and affordable IP Transit.
“The NOC (Network Operations Centre) and CLS have already been constructed for ‘LightUp’ in the second quarter of 2018.”
Future plans
According to Zaid, Sacofa’s role has evolved over the 16 years since its inception from a pure tower company into fibre backhauling for the telcos and again when Jaring abruptly ceased operations, the company commenced internet service provider (ISP) services to clients who were left with no connectivity.
“As we continue our journey the natural progression is to start looking for opportunities beyond Sarawak, specifically to increase the connectivity in Sarawak,” he said.
Meanwhile, Sacofa is constantly looking for ways in order to bring investment to Sarawak, one such area has been in data centres.
The company started this process back in 2015 by calling for workshops and having discussions with Sarawak Energy Bhd, Malaysia Digital Economy Corporation (MDEC) and State Authorities.
“It was something new back then and nobody was really aware of the potential. Now with SMA in place and cooperation from all levels of industry and government, we hope to be able to position Sarawak as an attractive location for the data centre industry.”
“A study we commissioned by an international consultant in early 2016 ranked Sarawak quite highly in the region as a data centre location. With the right mix of cooperation and handwork, we see this as another opportunity for Sarawak capitalise on its strengths of affordable energy and land.”
Overall, Sacofa’s business plans remain and always will be “Sarawak First”.
“We have a responsibility to the state and to the people who live here, including 99.9 per cent of Sacofa staff who are Sarawakians. With this in mind, coupled with the Chief Minister’s vision and the formation of SMA, we look forward to the journey,” he affirmed.
“Sacofa’s ongoing developments facilitate the State Government’s target of achieving 95 per cent broadband coverage in populated areas by 2020 and 100 per cent coverage with a minimum throughput of 150Mbps by 2030 as it develops the state’s digital economy.”