Malaysia Decides on Innovative Approach for 5G Spectrum

Malaysia's regulator MCMC announced final report on allocation of spectrum bands for mobile broadband service on Jan 01 2020. The report is available here and follows on from the consultation document released in August 2019, available here.

Great to see a telecom regulator, who understands that “VALUE” - does not equal getting as much cash as possible out of a #5G spectrum auction but creating the best option for all enterprises and licensees in the ecosystem.

MCMC could you travel up north and visit the NBTC? https://t.co/StSI1bzyU6 pic.twitter.com/IKBYHAFAwm

— YOZZO (@Yozzo) January 1, 2020

People have generally been impressed with MCMC's approach with many analysts heaping praise on them for putting people and connectivity before money. We will have to wait to see what the Malaysian operators think.

Another interesting approach to #5G spectrum licensing, from Malaysia.

Aiming for neutral/shared infrastructure in 700MHz & 100MHz of the 3.5GHz band

26/28GHz are a mix of national "beauty contest" licenses, plus localised (inc enterprise) allocationshttps://t.co/faMv2NPkOn

— Dean Bubley (@disruptivedean) January 2, 2020

The press release provides a good summary of the decision but I encourage interested parties to read the report that has a lot more detail. Here are the interesting bits:

MCMC has identified the 700 MHz, 3.5 GHz and 26/28 GHz as the pioneer spectrum bands for the roll-out of 5G in Malaysia, in light of the rapid development of the global 5G ecosystem and deployment. 

The 700 MHz and 3.5 GHz bands are being considered for allocation to a single entity comprising a consortium formed by multiple licensees, instead of individual licensees. MCMC will undertake a tender process for this purpose. This approach is intended to lower the capital expenditure (“CAPEX”) by minimising costs and prevent the duplication of infrastructure, at a time where improvements in 4G networks are continuing.  

As this is a new approach, MCMC will only make available 2x30 MHz of the 700 MHz band and 100 MHz of the 3.5 GHz band. The remaining frequencies of these bands will be considered for assignment at a later stage. 

The assignment of the 26/28 GHz bands will be conducted in two methods. The 24.9 GHz to 26.5 GHz frequency bands will be assigned through a tender process (beauty contest) to licensees on a nationwide basis. The 26.5 GHz to 28.1 GHz frequency bands will be assigned on a first-come first-served basis and will be open to any party (including non-licensees) for the purpose of deploying localised and/or private networks. 

The assignment for the above mentioned spectrum bands will be made by way of apparatus assignment (AA). MCMC anticipates that the appropriate spectrum fee through AA is more economical, and will encourage network deployment by the service provider. Cost savings can be passed on to businesses and consumers to ensure better value of affordable services.  

Once the assignment processes are completed, MCMC expects commercial deployment of 5G in Malaysia to begin by the third quarter (Q3) of 2020. This is consistent with the deliberations in the National 5G Task Force that was established since November 2018 and comprised of 114 organisations from the private sector, ministries and agencies representing the demand and supply side of the ecosystem. 

The existing allocation for deployment of current 4G technology will be maintained. This includes maintaining the existing allocation of the 2300 MHz and 2600 MHz bands until December 2021. MCMC will undertake the necessary review of these bands in 2021.

Related Posts:

• Malaysia: 5G Trials and Updates

Malaysia: 5G Trials and Updates

The Malaysian Communications and Multimedia Commission (MCMC) has said the optimisation of the existing 4G network is essential before the country can achieve the adoption of 5G network.

While the 5G Taskforce was established by the commission in November 2018, with the aims of exploring practical uses and modes of 5G, as well as to learn and iron out policies, regulations and spectrum planning for 5G, MCMC said full adoption may only take place in a few years’ time. MCMC said in a statement.:

“Thus, what is essential today is for the current network architecture to be fully enhanced and optimised to address congestion and manage high bandwidth. Malaysia’s current network suffers from low throughput of 9 megabit per second (Mbps) or 36% below average during certain times of the day, as a result of congestion or bottlenecks between network elements, i.e. the radio interface and core network,”

This is due to a partially fiberised end-to-end network architecture, and only 40% of the Base Transceiver Stations (BTS) are fully fiberised. Accordingly to MCMC currently, the average 4G download speed in Malaysia stands at 21.1Mbps. 

MCMC chief digital officer Gerard K M Lim said 5G technology promises 1 Gigabit per second (Gbps) per user and if the core network upgrade work is overlooked, the same throughput issue will continue to plague the country.

Lim said there would be a potential bottleneck or congestion point between BTS and the core network and therefore, the telecommunication providers must ensure that current 4G access is optimised and at the same time, prepare for the upcoming 5G requirements.

“Ultimately, the goal is to ensure positive customer experience, when it comes to connectivity without any congestion issues."

No doubt 5G connectivity has the potential to grow the economy by delivering the next generation of digital services, said MCMC, adding that technologies like artificial intelligence, virtual reality and massive machine communications will rely on the future deployment of 5G.

MCMC also released a report and THE DRAFT NATIONAL FIBERISATION AND CONNECTIVITY PLAN (‘DRAFT NFCP’) 

The Draft NFCP sets out, among others, the targets, action plans and strategies to accelerate deployment of digital infrastructure. The 5-year plan aims to:

i. address issues that hinder the widespread availability of high quality and affordable

digital connectivity;

ii. support the needs of the country moving forward and harness opportunities offered by

new services / technologies; and

iii. provide clarity in terms of strategic directions for initiatives to support the digital

economy and adoption of future technology. 

Source.

Initially, the Draft NFCP outlined 17 targets to be achieved through four (4) action plans:

A. Ensure optimum deployment of digital infrastructure

         1. Average speed of 30 Mbps in 98% of populated areas;

         2. 100% premises passed in State Capitals and selected high impact areas with up

             to 500 Mbps;

         3. 20% of premises passed in sub-urban and rural areas with up to 500Mbps;

         4. Fibre network passes 70% of schools and government offices, hospitals and police

             stations near schools;

         5. Gigabits availability in selected industrial areas and to all State Capitals;

         6. Phasing out of copper network;

         7. Assessment of technical standards that should be mandated for infrastructure

             deployment;

         8. Allocation of 700MHz and reallocation of 2300MHz and 2600MHz;

         9. Mobile coverage along Pan Borneo highway upon completion;

        10. Submarine Cable Landing Centres (‘SCLC’) in Sabah & Sarawak to link directly to

              international cables; and

        11. Policy position on 5G related issues.

B. Provision of affordable services and improve quality to drive the digital economy

        12. Entry level fixed broadband package at 1% of Gross National Income (‘GNI’);

        13. Double the speed at half the price; and

        14. Yearly publication of Quality of Service Report.

C. Promote competition

        15. Extension of liberalisation in key strategic activities.

D. Participation in the digital economy

        16. 100 rural e-commerce fulfilment centres; and

        17. Quality of Service for courier service. 

These initial targets and action plans were prepared based on initial consultations with limited stakeholders as well as from the initial targets announced by the Minister at the “Malaysia : A New Dawn Conference” in October 2018.

In November last year, MCMC established a 5G task force to explore the practical uses and modes of 5G as well as to iron out policies, regulations and spectrum planning of 5G.

Telecommunications providers have been urged to be prepared for the upcoming 5G requirements.

Maxis Bhd has in collaboration with Huawei kicked off the first 5G live trials in Malaysia, specifically in Cyberjaya earlier this week.

The trials will be conducted over six months and are expected to provide a deeper analysis of 5G characteristics, Maxis said in a statement today.

This includes the use of spectrum in higher bands, co-existence with current services, as well as use cases such as Gigabit high speed mobile internet and ultra high-definition virtual reality applications.

"During the trial so far, Maxis recorded close to 3GB per second download speed," they said in the statement.

The trial follows the recent announcement by the government that Cyberjaya and Putrajaya will become the first smart cities in Malaysia to experience 5G technology. According to Maxis:

"Once available, 5G is expected to provide speeds up to ten times higher than what 4G network can do today for applications such as Ultra High-Definition VR and 360 degree viewing. It will also open up new use cases in areas such as artificial intelligence, robotics and drones," 

Malaysia's national telco Telekom Malaysia (TM) is also in the first stages of testing 5G connectivity in the country. The test will be conducted via their internet service provider division Unifi and the first location will be in the town of Puchong in the Petaling Jaya district. Currently, the telco's LTE network is capable of speeds up to 200Mbps, but with the implementation of pre-5G, the speeds will be boosted up to 500Mbps. The Executive Vice President of Unifi Moharmustaqeem Mohammed stated that the transition to 5G will be done seamlessly and customers will not have to change their current packages or equipment.

U Mobile have also signed a Memorandum of Understanding (MOU) with ZTE to support its 5G deployment goals in Malaysia. This will include various 5G related developments including live testing, 5G showcases as well as Massive MIMO implementation.

According to U Mobile, they have a long standing working relationship with ZTE and it is a logical next step to continue to collaborate on initiatives related to 5G. According to the telco’s CEO, Wong Heang Tuck, U Mobile will be working closely with ZTE to conduct live tests in selected areas in KL city so that Malaysians can experience the power of 5G first hand.

Finally Celcom Axiata Berhad, Malaysia’s leading data network provider, has signed an agreement with Ericsson to expand and upgrade its LTE network in Malaysia. As part of this, Ericsson will supply Radio Access Network (RAN) equipment from its Ericsson Radio System portfolio to help Celcom serve the growing demand for data services in Malaysia. Ericsson’s RAN equipment will also serve as a platform to help Celcom evolve its network to 5G in the coming years.

Mohamad Idham Nawawi, Chief Executive Officer of Celcom Axiata Berhad, says:

“We have been at the forefront of providing our customers with the best data experience, and remain committed to evolve our network with the latest technologies. This partnership is strategic as it will not only help us further expand our LTE footprint but create the base for the launch of 5G services. We will continue to drive technology innovations in Malaysia to bring the latest services, and to enable all Malaysians to participate in the digital economy.” 

In 2017, Ericsson and Celcom performed Malaysia's first ever 5G trial, pioneering the evolution of the nation's telecommunications technology. It was the first 5G trial conducted on the 28 GHz band in South East Asia.

Malaysia: Challenges of 4G

It has been more than 5 years since 4G LTE was officially rolled out in Malaysia. Today, there are six 4G LTE operators in the country and the cost of data is so much more affordable than before. The mobile operators are – Maxis, Celcom Axiata, DiGi, Webe, U Mobile and Yes. In May 2017 Celcom Axiata carried out what is claimed to be Malaysia’s first 5G trial. The test was also said to have demonstrated futuristic 5G use cases, such as robotic control, connected environment, virtual reality, Internet of Things (IoT) applications and 4K video streaming.

Although 4G technology is available 74.88% of the time to Malaysians, its speed leaves much to be desired. According to a report by OpenSignal, a company that specialises in wireless coverage mapping, the 4G speed in the country is only 14.83Mbps.

With that, OpenSignal ranks Malaysia as one of the lowest 20 countries in the list which was led by Singapore at 44.31 Mbps while India being ranked last due its 6.07 Mbps download speed.

However,  LTE availability in Malaysia was more promising. The report pointed out that the LTE connectivity in the country can be accessed 74.88% of the time throughout Q4 2017. While it is better than Algeria which occupy the bottom of the list due its 40.94% rating, Malaysia is nowhere near South Korea whereby users were able to achieve LTE connection 97.49% of the time.

According Open Signal test results regarding the highest 4G/3G download speeds and the lowest latency for both 4G and 3G among operators: Maxis comes out on top overall. 

Coming in at second place is Yes. When it comes to 4G, Yes records an incredibly high 93.18% availability followed by Maxis at 80.45%. OpenSignal notes that 4G availability isn’t a representation of geographic or population coverage, but rather how often its users are connected to a 4G network. It is worth mentioning that Yes itself runs on a pure 4G network so if it goes out of coverage, there’s no 3G or 2G network to fall back on. Yes also records the highest overall average download speed of 19.03Mbps and it isn’t surprising since its users are connected only on 4G, while other telcos have samples measured on 3G.

If we look at the rest, Celcom (16.15Mbps) takes 3rd place followed by Digi (11.77Mbps) on 4th and U Mobile (7.2Mbps) at 5th place for 4G downloads. Webe (or now known as UniFi) is ranked the lowest at 6.76Mbps. When it comes to 3G, 2nd place goes to Celcom (2.9Mbps) followed by U Mobile (2.78Mbps) and Digi (2.58Mbps).

You can read the full OpenSignal report here.

Malaysia Mobile Operator Overview

As of March 2011, the penetration rate in Malaysia was estimated at 117.635% over a population estimate of around 29 million.

Source.

Malaysia has 12 MVNOs and counting. Source.

In Malaysia, an interesting trend observed is that smaller mobile virtual network operators (MVNOs)  have been steadily eroding prepaid market share from the Big Three cellular providers Maxis Bhd (Maxis),  Celcom Axiata Bhd (Celcom) and DiGi.Com Bhd (DiGi).

Malaysia’s rate of 140 per cent exceeds that of developed markets such as South Korea with 111 per cent and Taiwan’s rate of 127 per cent, and is among the highest in Asia.

In fact, it pointed out that Malaysia is closing fast on the gap with Hong Kong (230 per cent), Singapore (152 per cent) and Vietnam (149 per cent), the only three countries which have higher mobile penetration.
Source