Approximately 80-90% of Malaysia’s Internet traffic goes outside the country. This requires Malaysia to access a significant amount of bandwidth via international submarine cables. Currently, Malaysia uses 200Gbps of capacity, and this must be increased rapidly to reach 7Tbps by 2020. To achieve this, this EPP aims to encourage the establishment of advanced data network centres to move Malaysia up the value chain of Internet services provided.
One of the initiatives introduced was the Batam-Dumai-Malacca Cable System – the latest high bandwidth optical fibre submarine cable system that directly connects Malaysia and Indonesia. This system is managed in collaboration between Telekom Malaysia Bhd (TM), its Indonesian unit PT XL Axiata Tbk (XL), and Indonesia’s PT Mora Telematika.
Another initiative introduced was the Konsortium Rangkaian Serantau Sdn Bhd, a consortium of 24 telecommunications companies that target to address bandwidth capacity and costs between consortium members via a two-stage approach – reducing the cost of bulk bandwidth purchase and collaborating to build an undersea cable network.
The Cahaya Malaysia Cable was also announced, in which TM will build a two-fibre pair cable system linking Malaysia to Japan and Hong Kong. When completed, the system will add another 5Tbps of capacity.
- In 2014, Konsortium Rangkaian Serantau obtained 20Gbps demand from its shareholders for international Internet wholesale bandwidth. This allowed the consortium to reduce the international Internet bandwidth wholesale price by 34%.
- As at December 2014, 15% of the rollout of the submarine cable for the Sistem Kabel Rakyat 1Malaysia has been completed.
- The national blueprint for Internet cables was developed in 2014.