MCMC: ISPs yet to finalise agreements; cheaper broadband prices only after September


The first MSAP was implemented in 2018, when Gobind Singh Deo served as the Communications and Multimedia Minister, resulting in price reductions of up to 30% for entry-level broadband plans. — MCMC

PETALING JAYA: The Malaysian Communications and Multimedia Commission (MCMC) said that despite the latest Standard on Access Pricing (MSAP) taking effect on March 1, users can only expect cheaper broadband prices after access agreements have been finalised with Internet service providers (ISPs), which it expects to conclude by the end of September.

MCMC issued the statement in response to a report by a local tech portal questioning why there hasn’t been a price reduction even after four months of the MSAP agreement coming into effect.

The first MSAP was implemented in 2018, when Gobind Singh Deo served as the Communications and Multimedia Minister, resulting in price reductions of up to 30% for entry-level broadband plans.

"The implementation of the MSAP came into effect on March 1st, 2023. However, the MCMC states that the actual reduction in broadband prices can only take place after the completion of access agreements between the service providers," the regulatory body said in a statement.

It added that most access providers have already published or are in the midst of publishing their reference access offer (RAO), which will serve as the basis for negotiation to establish the access agreements.

"Therefore, the MCMC clarifies that the price reduction of broadband services can be expected to occur after the conclusion of these access agreements.

"Once the agreements are finalised, the service providers will be able to adjust their retail fixed broadband prices accordingly, leading to potential cost reductions for consumers," it said.

MCMC added that the government launched Pakej Perpaduan Fixed Internet Broadband in February to help low-income groups.

Since the package was introduced, 6,066 users have signed up for the 30Mbps (megabits per second) plan, priced at RM69 per month.

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