1. 11
FOUNDATIONS FOR A
DIGITAL ECONOMY
THE CONTENT & SERVICES ECOSYSTEM
18-21st August 2014
MYNOG

2. 22
COMPARISONS BETWEEN CONVENTIONAL AND
DIGITAL ECONOMIC MODELS
ENERGY
Centres of
Economic Activity Economic Value Multipliers
Centres of
Economic Activity
Logistics:
Highways, Airports,
Ports, RailwaysCities/Towns/
Villages
CONVENTIONAL
Cities/Towns/
Villages
Cloud & Data
Centres
Connectivity:
Telecoms, Internet,
Broadband
DIGITAL
Cloud & Data
Centres
Multiplier Multiplier

3. 33
DIGITAL ECONOMY ECOSYSTEMS
A Tale of Two Ecosystems
A Comparative Look at Malaysia and Singapore

4. 4
THE SERVICES & CONTENT ECOSYSTEM IN SINGAPORE IS MUCH MORE
MATURE WITH INVESTMENTS FROM LARGE MULTINATIONALS
MALAYSIA SINGAPORE
?
?
Content and
Services
Internet Content &
Cloud
Data Centre
Infrastructure
Telecoms, Fibre &
Submarine Facilites
Mobility
Infrastructure
Consumer Devices
?

5. 5
POPULAR CONTENT AND SERVICES ARE MOSTLY OUTSIDE
MALAYSIA DUE TO THE GAPS IN OUR ECOSYSTEM
Today, almost all the
online content
Malaysians use is
overseas.
The data travels
over long distances
on narrow “pipes”
and that means slow
access.
That means Malaysia
spends billions on
international
connectivity for
inbound overseas
content.

6. 66
SITUATIONAL ANALYSIS
MALAYSIA: BROADBAND TIMELINE
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Multimedia
Super
Corridor
TMnet
Launched as
Malaysia’s
second ISP
after Jaring
115
Kbps
Limited
Trial of HIS
by TMnet
384
Kbps to
4
Mbps
Streamyx
by TMnet

7. 77
MALAYSIA: BROADBAND TIMELINE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
50%
Household
broadband
penetration
(384Kbps –
20 Mbps)
RM$ 11.3 Billion PPP (RM2.4B Public funding)
NBI
National
Broadband
Initiative
HSBB:
10Mbps-1Gbps
BBGP:
< 2 Mbps
HSBB
5-20
Mbps
UniFi
Launch
HSBB
30-100
Mbps
UniFi Biz
Packages

8. 88
MALAYSIA: BROADBAND 2013
Malaysians are
able to
USE on average
<3
Mbit/s
Source: Akamai State of the Internet Q2 2013

9. 99
MALAYSIA: BROADBAND 2013
Malaysian
premium users
have access to on
average
5.1
Mbit/s
Source:
HSBB = 667,880 subscriptions

10. 1010
APPENDIX
CASE STUDY
Broadband in South Korea
1996 - Present

11. 1111
CASE STUDY
SOUTH KOREA: BROADBAND TIMELINE
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Focus on
broadband
Korean
Communications
Commission
publicised
National Goals.
All large office
and apartment
buildings
Fiberised
30%
of households
to have
broadband
access through
xDSL or
cable
80%
of households
connected at
20Mbit/s
or more
Source: Korean Communications Commission

12. 1212
SOUTH KOREA: BROADBAND TIMELINE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Plan to
upgrade to
1 Gbit/s
service by
2012
1Gbit/s
Service
Available to
12,000
households
Source: Korean Communications Commission
US$ 24.6 Billion
1Gbit/s
Service to be
available
Nationwide
US$ 28.3 Billion

13. 1313
SOUTH KOREA: BROADBAND 2013
50%
South Koreans
USE on average
>10
Mbit/s
Source: Akamai State of the Internet Q2 2013

14. 1414
SOUTH KOREA: BROADBAND 2013
South Korean
premium users
have access to on
average
>50
Mbit/s
Source:

15. 1515
S. KOREA: VITAL STATISTICS
/ South Korea has 40.3 Million Internet Users
/ 82.5% Broadband Penetration (mobile+fixed)
/ US$52.9 Billion invested over 7 years
/ 98% of Internet Traffic in South Korea is LOCAL
/ US$1,312.5 invested in infrastructure per
Internet user

16. 1616
SPEED OF BROADBAND
Broadband Speed and Impact to
Contribution to GDP

17. 1717
WHAT IS BROADBAND?
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
>0.2
Mbps
1.5-2
Mbps
>0.26
Mbps
4
Mbps
>0.38
Mbps
Kbps = Kilo Bits per Second = 1 Thousand bits per second
Mbps = Mega Bits per Second = 1 Million bits per second
3
Mbps
DEFINITIONOF
BROADBAND
In Malaysia, broadband
penetration is measured using
0.384 Mbps
as a minimum
In Singapore, the
minimum broadband
speed available is
3 Mbps

18. 1818
CASE STUDY:
G20 INTERNET CONTRIBUTION TO GDP

19. 19
0
10
20
30
40
50
60
0 1 2 3 4 5 6 7 8 9
% > 10 Mbit/s
% > 10 Mbit/s
Countries with higher penetration of High Speed Broadband
>10 Mbps show a greater positive impact to GDP by broadband.
Broadband % GDP Contribution
% High Speed Broadband
Penetration
Source:
BCG The Internet Economy in the G-20 -March 2012
Akamai State of the Internet Q1 2013
India China
UK
S. Korea
Japan
US
ECONOMIC IMPACT COMES FROM SPEED AND CAPACITY
Content Rich with
Huge DC / Cloud
capability
Malaysia

20. 2020
MAGIC NUMBER:10 MBPS PER USER
17.7
Million
Internet
Users
670k
HSBB
3.3
Million
mobile
broadband
13.7
Million
low
speed
Internet
✔
✔
*estimate is benchmarked against South Korea investment of US$1,300 per person
Malaysia would need to
invest about
RM60 Billion*
This will require
significant contribution
from foreign investment

21. 2121
ULTRA BROADBAND
Unlocking the Full Potential of Fibre

22. 2222
UNLOCKING THE FULL POTENTIAL OF FIBRE
Today, one pair of optical
fibres can supply 9.6
Million Mbps
Almost 10 Mbps each
for 1 million people
COST: RM 10 per Mbps
(point to point over 100 Km distance)
Current practice in
Malaysia is that excess
capacity is held in reserve
for future use, driving up
the cost per Mbps
COST: RM 2,000 per
Mbps
(point to point over 100 Km distance)

23. 2323
REDUCING INFRASTRUCTURE COST CAN REDUCE
OVERALL COST FURTHER
/ Deploying Optical Fibre has a cost of
RM150,000 – RM200,000/km
/ In Malaysia, civil infrastructure practices require
improvements in two key areas:
1. Infrastructure is rarely shared, with many exclusive areas
2. Major issues obtaining permits and rights-of-way from local authorities
(including trenches, tunnels, ducts, man-holes, poles, etc)
80% of the cost is the
Civil Infrastructure
“Digging the roads and patching it up”

24. 24
IF TELECOMS ARE THE HIGHWAYS OF THE DIGITAL ECONOMY,
THEN DATA CENTRES ARE THE CITIES.