Broadband prices to drop by 25% by end of the year

PETALING JAYA: Fixed broadband charges are expected to drop by up to 25% by the end of the year following the implementation of the "Mandatory Standard on Access Pricing" (MSAP) on June 8.
Multimedia and Communications Minister Gobind Singh Deo said discussions by relevant parties on the final charges are expected to conclude by August, after which lower priced broadband packages are expected to be offered.
He said MSAP stipulates the ceiling charges applied by service providers for facilities and services.
"Lowering wholesale prices should translate to lower prices for consumers. The new pricing was supposed to be implemented on Jan 1 but this was delayed on request by Telekom Malaysia," Gobind said.
Upon taking office, Gobind had announced that the Pakatan Harapan government will take steps to reduce broadband charges while increasing its speed, as the government recognises that access to the internet is a basic human right in Malaysia.
Gobind said this was because broadband services are critical to the transformation of the nation into a digital economy and to ensure all Malaysians have access to information.
Gobind said he had directed the Malaysian Communications and Multimedia Commission (MCMC) to monitor broadband charges to ensure affordable entry-level packages are offered to the public, and also consider other options available to further reduce broadband charges.
This will ensure that people from all sectors and different income groups have access to the internet and are given the opportunity to fully participate and benefit from the digital era.
Gobind said the National Audit Department will conduct an audit of two funds – the MCMC Fund and the USP Fund, which stood at RM800 milllion and RM8.5 billion respectively as of Dec 31, 2016.
The audit of the funds, which come under the purview of the commission, is to verify the accounts and to enhance transparency over the use of the money.