The telco race towards rural Sarawak

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Internet connectivity is a long-standing issue for rural communities throughout Malaysia, and Sarawak is no exception.

With parts of Sarawak – particularly the interior – not having coverage at all, it comes as no surprise that many question the priorities of certain policies being put in place above others.

Member of Paliament for Sarikei, Wong Ling Biu during a July 3 Parliament session questioned the point of introducing fifth generation (5G) mobile technology when even 4G connection and connectivity is hard to get in the rural areas.

“Let’s not talk about 5G connectivity, even the fourth generation (4G) connection and even the normal connectivity is hard to get.

“What is the ministry’s plan or measures that will be taken to address this in Sarawak?” he had asked during Question Time.

Communications and Multimedia Minister Gobind Singh had then responded that 5G technology was important to prepare the country to compete on the international level and to face the challenges of the digital economy in the future.

“We have to look forward. Although we accept that the current coverage needs to be improved, not only in Sarawak, but nationwide. But that does not mean we cannot do new initiatives like 5G.”

Following these updates, Chief Minister Datuk Patinggi Abang Johari Tun Openg in July said Sarawak was left with no option but to inject RM1 billion of its own funds to enhance telecommunication infrastructure across the state.

The Chief Minister said the federal government levied on telecommunication companies (telcos) but these telcos, who were supposed to develop infrastructure did not do so in Sarawak given the relatively smaller market and slower return on investment.

“They take levy from telcos. We ask for that money to do infrastructure. But telcos have their own way to make sure there is a return on investment.

“So they don’t invest here. We are in a dilemma. So we use government injection because infrastructure cost is high,” he said at a press conference after launching the Sarawak Beyond Paradigm Summit 2019.

Abang Johari said his administration had no choice but to allocate state funds to upgrade telecommunication infrastructure in Sarawak.

“It’s meant for the people. We need to improve our digital infrastructure,” he said.

Fast forward to August, Gobind announced that the implementation of the National Fiberisation and Connectivity Plan (NFCP) has been approved by the Malaysian Cabinet.

The NFCP, which will span over five years from 2019 to 2023, is expected to cost RM21.6 billion.

“In line with the government’s aspiration, the NFCP will bring together the people and businesses in its mission to develop the Malaysian digital economy in the Fourth Industrial Revolution (IR 4.0), narrow the digital gap and generate a constructive environment for new technologies such as 5G,” he said.

“The NFCP focuses on fibre networks to enable greater digital connectivity. However, alternative technologies such as wireless networks and satellite technology will also be deployed wherever conducive.

“This is in line with the ‘Shared Prosperity’ initiative, in which rural areas will be able to enjoy high-quality and high-speed broadband access.

“The NFCP’s main targets include the provision of an average speed of 30 Mbps in 98 per cent of populated areas and gigabits availability in selected industrial areas by the year 2020 and all state capitals by 2023.”

Gobind also highlighted that in line with the government’s objective to recognise access to the internet as an basic right, NFCP projects will ensure equal access to the internet for both urban and rural residents.

“The new digital infrastructure will also benefit those who may otherwise not have the opportunity to participate in the digital economy, for example, farmers, fishermen and the Orang Asli community.”

Whether Sarawak or Sabah will benefit from this nationwide digital connectivity plan remains to be seen.

Whilst the federal and state government continune their pursuits to enhance coverage, this gives leeway for the private sector players to enter the fray and provide the much-needed services in demand.