Remove 2-year contract imposed by telcos

There has been some good news for internet users in recent weeks.

On Feb 17, telecommunication providers such as Maxis, CelcomDigi, Unifi Mobile, U Mobile and Yes were reported to have come up with a new prepaid mobile internet plan in response to the government’s “unity package” proposal.

The RM30 unity prepaid mobile internet package, which will be available from Feb 28 until Dec 31 this year, offers customers speeds of up to 3Mbps and 30GB data quota for a period of six months.

This comes in the wake of an announcement by minister of communications and digital  Fahmi Fadzil that the “unity package” would be for the B40 group, police and army veterans, persons with disabilities and senior citizens.

The new plan is said to replace the older “Keluarga Malaysia” package which offered 20GB of high-speed data valid for 3 months for RM30. What this means is that we get an extra 10GB of data for double the earlier validity period.

Several telecommunication providers have also announced an upgrading of a few of their current packages, especially in terms of data offered.

While some consumers will welcome this, some others will see all this as just cosmetics.

Earlier, the government announced that it was taking action to resolve frequent complaints of poor internet access in certain areas. It has directed the Malaysian communications and multimedia commission (MCMC) to resolve service quality issues affecting telecommunications companies by June.

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Among the complaints, minister Fahmi said, was the quality of service on highways and at some stadiums.

“There is an issue of in-building coverage because some users can only access the internet when they are outside the building. Once inside, the coverage drops. Certain equipment must be installed inside the building (to get reception) so there needs to be cooperation among telecommunications companies through MCMC on areas that should be prioritised,” he added.

I have heard too many complaints about people having to go out of the building to get a clearer reception, including in urban or semi-urban areas such as Puchong in Selangor. I have myself experienced poor coverage in certain areas and in some towns.

I have found, for instance, that both the internet and mobile phone service are poor in Tanjung Rambutan, which falls under Prime Minister Anwar Ibrahim’s Tambun parliamentary constituency. I’m sure residents in Tambun are hoping for improved services all around now that their MP is prime minister.

Another piece of good news is the ministry of communications and digital’s proposed broadband unity package which has been welcomed all around.

Reports quoted minister Fahmi as saying the broadband unity package (Pakej Perpaduan Jalur Lebar Tetap) would be priced at RM69 per month and would come with unlimited data and broadband speed of up to 30 Mbps. He said the “unity package” was for the B40 group, police and army veterans, persons with disabilities and senior citizens.

This package is to be introduced by broadband providers in March.

According to a study published by Cable.uk.co, which does price comparisons, Malaysia ranks 75 among 220 countries whose broadband prices were compared to find the country offering the cheapest such service.

Malaysia’s average broadband price of RM140.58 (US$33.44) was higher than that offered by neighbours Vietnam (US$10.81), Thailand (US$17.68), Myanmar (US$26.44), Cambodia (US$30), Indonesia (US$31.21) and Singapore (US$32.70).

Many had earlier called for any “unity package” offered to be extended to everyone, or at least to those in the M40 group. I agree.

What I don’t agree with is the 24-month subscription contract that comes with the unity package.

I can’t understand why telcos need to tie us down to 2-year contracts when we purchase telephone or internet services.

Each time you want to upgrade or downgrade a package, you have to extend the contract by another 24 months, or sometimes 12 months.

The telcos have formed a sort of cartel to force this upon consumers and the government is not doing anything about it. The impression given is that the government cares more for big business than it does for the small consumer.

It is not as if telcos are making losses. They are making good profits, given the widening use of telephones and computers and the pace of digitalisation.

Bernama recently reported that internet bandwidth demand in Malaysia was soaring and that the Malaysia Internet Exchange (MyIX) had recorded a peak of 1.9 terabytes per second in December 2022. This represents a more-than-threefold surge from the 588 gigabytes per second recorded in May 2020.

It quoted MyIX chairman Chiew Kok Hin as saying this record peak showed that the Internet and the digital economy were deeply entrenched in Malaysians’ lifestyles and work culture.

Demand, he said, would keep rising due to the government’s digital strategy and the booming digital economy.

And according to Malaysia Digital Economy Corp, the digital economy, which is contributing 22.6% to the country’s gross domestic product, is projected to rise to 25.5% by 2025.

Figures released by the department of statistics in April 2022 show that household access to the computer stood at 88.3%, the internet at 95.5%, the mobile phone at 99.6% and fixed-line telephone at 31.3%.

Let’s also not forget that there are more handphones in use in Malaysia than the total population of 32 million.

So why the need for 2-year contracts? If at all telcos are allowed to tie consumers down, then the contract period should not exceed 6 months. Also, there should be no need to extend the contract period for upgrading or downgrading any package.

Consumers will again face this problem when the “unity package” takes off. Many senior citizens, for example, would want to change to the cheaper package but will be forced to be on a two-year contract if they do so. Consumers with existing packages will have no choice if they want the cheaper package.

I hope Fahmi will tell telcos to drop the contracts or limit them to six-months. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.