TM has recently released its new Reference Access Offer (RAO) which outlines the wholesale pricing of its High-Speed Broadband (HSBB) network. With lower HSBB wholesale prices, consumers can expect to enjoy cheaper retail prices for fibre broadband services, such as those offered by various players including TM’s own Unifi, CelcomDigi, Maxis, and Astro.
This is being done in compliance with the new Mandatory Standard on Access Pricing (MSAP) issued by the Malaysian Communications and Multimedia Commission (MCMC) in March.
According to TM’s new RAO, a tiered pricing system is being implemented, with the wholesale charges only cheaper with higher monthly volume. On the lowest tier of 0-499,999Mbps, TM is charging RM8 per Mbps/month versus RM2.55 per Mbps for the highest tier of 9,000,000Mbps and above.
This would mean providers with low monthly volume (less than 500Gbps) would have to pay RM800 for 100Mbps, while providers that can achieve the minimum of 9Tbps per month will only need to pay RM255/month for 100Mbps.
Under the new MSAP rates issued by the MCMC, this year’s mandatory HSBB wholesale price for 100Mbps is RM254.64/month. This is about a 50% decrease in price compared to the rate in 2020. According to MCMC’s schedule, the wholesale rates will continue to decline with 100Mbps costing RM217.65/month in 2024 and RM186.21/month in 2025.
The issue now is that in order to qualify for the reduced rates, access seekers will need to utilise the minimum 9Tbps per month, which can be a challenge. As such, it is unlikely that most consumers will get to enjoy significantly cheaper broadband prices on TM’s HSBB network. Smaller broadband players in the market will also likely suffer from being unable to obtain reduced rates compared to larger ones with their larger volume.
