Commission wants telco providers to revise rates for calls between their customers

December 18, 2012

KUALA LUMPUR: CONSUMERS can now look forward to lower rates and charges when telecommunications (telco) service providers review their call plan packages from Jan 1.

This comes after a directive from the Malaysian Communications and Multimedia Commission (MCMC) for the telco providers to review the access prices for their wholesale facilities and services from next year.

“We decided to make the call after conducting a public inquiry from Oct 1 to Nov 14,” MCMC chairman Datuk Mohamed Sharil Tarmizi said yesterday.

He said while MCMC had considered feedback from the telcos, it also took into consideration the impact such a move would have on the consumers in the long term.

The reduction in access prices — fees paid by one telco to another to connect a call for fixed and mobile “termination” (when a call is connected at the receiving end) — should have a desirable impact on consumers.

It is expected to yield lower retail rates for consumers in the long run as well as lower “termination” fixed and mobile rates which promote competition among the telcos, providing consumers with more varied options.

Sharilsa id t he directive would benefit consumers nationwide.

The results of a survey carried out by MCMC on a targeted population, covering users of handphones on all digital platforms, showed there were 36,123,300 handphone subscriptions to a population of 28,477,600 as of March 31 last year.

The number of registered numbers represent about 130 per cent of the overall population and these are the main users of the 011, 012, 013, 014, 016, 017, 018 and 019 networks.

Selangor had the most number of handphone users at 20.7 per cent, followed by Johor (11.7) and Kuala Lumpur (11.0).

MCMC had been reported to have proposed setting a price for the fixed access services (mainly in fixed wholesale services) and high-speed broadband wholesale services.

The move by MCMC was lauded by consumer associations, with the Federation of Malaysian Consumers Associations (Fomca) calling for one rate to be maintained for all calls.

Its president, Datuk Marimuthu Nadason, said consumers should not be charged differently for contacting a different telco user.

"It should be maintained at one rate for all."

Marimuthu said a main criticism was telecommunications companies' many data plans.

"In India, for example, consumers only pay for what they use but here, if one is a fixed line user, he has to pay a fixed charge no matter if he reaches the credit limit."

Marimuthu also called on a review of such plans, claiming Fomca had received "unending complaints" on the disparities.

Pahang Consumer Association president Muhammad Shaani Abdullah said MCMC's directive was long overdue.

"It is a timely move as we know telcos are making a high margin on these access rates."

Shaani said the review was necessary as consumers from the lower income group had been burdened with high charges.

"The authorities must ensure the telcos review the fees and should come down hard on those who fail to comply."

A check revealed that the call rates for a Maxis user to other local operators is pegged at 30 sen per-minute during peak hours and 15 sen at off-peak hours.

Celcom call rates to other operator users is at 28 sen per-five minute. Digi, on the other hand, offers the service at 10 sen while the charges drop to 5 sen from 4pm to 6pm. Additional reporting by Sukhbir Cheema