a) Industry description: Mobile Telecommunication industry in Malaysia

The first mobile system Nordic Analogue technology NMT450 provided by Telekom Malaysia
was introduced in 1985 in Kuala Lumpur. Since that time, telecommunication industry in
Malaysia has significantly developed and expanded to millions of users and hundreds of
companies provided such services. In November 1988 Malaysia adopted convergence regulation
model: the Communications and Multimedia Act 1998, which set out a new regulatory licensing
framework for the industry and the Malaysian Communications and Multimedia Commission
Act (1998) which created a new regulatory body, the Malaysian Communications and
Multimedia Commission. According to the Commission, the number of mobile subscribers
increased from 1.5 million users in 1996 to 7 million users in 2001. (Figure a.1) In 1993 the
market was liberalized and opened for foreign companies and 6 new licenses of digital-based
(GSM) services were issued. Then, more advanced technologies were introduced such as short
messaging service (SMS), wireless application protocol (WAP), 3rd generation Mobile System
(3G), emails and Internet. Modern technologies, developed infrastructure, increase in living
level, competition and government support provides a wide market for mobile service
companies. Despite of high growth the mobile services performance remains low compare to
other countries in south pacific region. (Figure a. 2)
Figure a.1
Growth of users of mobile services in Malaysia
8
7
6
5

Total numbers f subscribers (millions)

4
3
2
1
0
1996

1999

2000

Year

2001

Figure a.2
Asia Pacisic Mobile subscribers by Country, 2001

18%

7%

24%

Singapore

51%

Taiwan

Philippines

M alaysia

References
http://www.skmm.gov.my/About-Us/History.aspx
Telecommunication and Information Highway systems in Asia: Telecommunications Market
Overview, 2002.
Global Mobile newsletter (Volume 9, Number 4, 27 February 2002),
Country data published by the Economist Intelligence Unit (December 2001)
AN OVERVIEW OF THE TELECOMMUNICATIONS INDUSTRY IN MALAYSIA.
University Malaya Research Repository