chenchow
16-09-2003, 09:40 AM
What do you guys think about the merger of Jaring and TMNet
Below is an excerpt from the Star on september 16th.
KUALA LUMPUR: The merger of Jaring and TMnet is a move to pressure the Internet service providers (ISPs) to offer better services and lower rates, Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie said.
He said the general perception was that competition would cause the ISPs to provide the best service and cheapest rates but when competition was opened up the two desired effects were not seen.
?Other operators who were given licences to provide Internet service found it is not feasible to do so. In the meantime the rates were not cheaper and services not better.
?The Government views that if this is the case then the dominant players can combine their strength and provide wider coverage and cheaper rates,? he said, explaining that the merger was not to create a monopoly by Telekom Malaysia.
Moggie was asked about the merger of the two ISPs as announced during the tabling of Budget 2004 which will be done as the Government decided to sell Jaring to public-listed Telekom Malaysia. Under the new incentives for Internet access, the Government also announced discounts to Internet broadband users ? 50% discount for industrial and corporate users and 30% for other users.
Moggie said there would still be competition in the market as there were ?quite a number? of companies licensed to offer Internet services. They, however, may not have done that due to their commercial judgment that they were not able to create the infrastructures, he said.
?Consumers are happy as long as they benefit from better service and lower rates, whether there is one single ISP or several of them. That is most important,? he said.
He also said the ministry wanted the new rates implemented as quickly as possible but declined to give a deadline as he acknowledged that this would involve operational structures.
On consumers? concerns that reliability of service would not improve, Moggie said the merger would combine the TMnet and Jaring networks as a single entity and they would be able to have more capacity to provide better coverage and faster access.
He said the licensed operators were expected to increase their investments in infrastructure support so they could provide better coverage and service,? he said.
Earlier Moggie launched the Celcom Prepaid Recharge Service at the Pos Malaysia headquarters here and witnessed the signing ceremony between Celcom (Malaysia) Berhad, Pos Malaysia Berhad and technology developer Empower Technologies Sdn Bhd.
Celcom group chief executive officer Datuk Ramli Abbas said customers now had the option of recharging their airtime and network access values (for 019 and 013) at 586 selected post office branches nationwide.
It involves no registration and customers need only complete a form and submit it at the post office counter for processing. Within two to five minutes the customers? airtime and network access will be updated via SMS, said Ramli.
Below is an excerpt from the Star on september 16th.
KUALA LUMPUR: The merger of Jaring and TMnet is a move to pressure the Internet service providers (ISPs) to offer better services and lower rates, Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie said.
He said the general perception was that competition would cause the ISPs to provide the best service and cheapest rates but when competition was opened up the two desired effects were not seen.
?Other operators who were given licences to provide Internet service found it is not feasible to do so. In the meantime the rates were not cheaper and services not better.
?The Government views that if this is the case then the dominant players can combine their strength and provide wider coverage and cheaper rates,? he said, explaining that the merger was not to create a monopoly by Telekom Malaysia.
Moggie was asked about the merger of the two ISPs as announced during the tabling of Budget 2004 which will be done as the Government decided to sell Jaring to public-listed Telekom Malaysia. Under the new incentives for Internet access, the Government also announced discounts to Internet broadband users ? 50% discount for industrial and corporate users and 30% for other users.
Moggie said there would still be competition in the market as there were ?quite a number? of companies licensed to offer Internet services. They, however, may not have done that due to their commercial judgment that they were not able to create the infrastructures, he said.
?Consumers are happy as long as they benefit from better service and lower rates, whether there is one single ISP or several of them. That is most important,? he said.
He also said the ministry wanted the new rates implemented as quickly as possible but declined to give a deadline as he acknowledged that this would involve operational structures.
On consumers? concerns that reliability of service would not improve, Moggie said the merger would combine the TMnet and Jaring networks as a single entity and they would be able to have more capacity to provide better coverage and faster access.
He said the licensed operators were expected to increase their investments in infrastructure support so they could provide better coverage and service,? he said.
Earlier Moggie launched the Celcom Prepaid Recharge Service at the Pos Malaysia headquarters here and witnessed the signing ceremony between Celcom (Malaysia) Berhad, Pos Malaysia Berhad and technology developer Empower Technologies Sdn Bhd.
Celcom group chief executive officer Datuk Ramli Abbas said customers now had the option of recharging their airtime and network access values (for 019 and 013) at 586 selected post office branches nationwide.
It involves no registration and customers need only complete a form and submit it at the post office counter for processing. Within two to five minutes the customers? airtime and network access will be updated via SMS, said Ramli.