PETALING JAYA, 30 November, 2010: Reports in a blog this morning, alleged that “YTL Communications executive director Datuk Yeoh Seok Hong and the Prime Minister himself confirmed that the spectrum apparatus assignment (AA) rights was granted to YTL Communications Sdn Bhd (YTL Comms).”

However, the Malaysian Communications and Multimedia Commission (SKMM/MCMC) said in an e-mail this evening, “An Apparatus Assignment (AA) had been given to YTL for its YES WiMAX service but not  for commercial roll out of its digital broadcast pay TV.  SKMM reiterates that no AA has been issued for this purpose (i.e. pay TV).”

“As in our press release (of 28 November), we are considering YTL's plan for broadcast TV and YTL  is to study if any clear channels can be used in the 80MHz (710-790 MHz) band to launch the service, subject the business plan being accepted, before being allowed to be issued with an AA for their commercial digital broadcast service.  As an additional note, the band is currently used by analogue TV at least until 2015,” the SKMM added.

Meanwhile in parliament, Minister of Information and Culture, Dato' Seri Utama Dr. Rais Yatim also refuted allegations by Jelutong Member of Parliament, Y.B. Jeff Ooi that the SKMM ) had ever given approval to anyone to operate in the 700MHz band, which can be used for broadcasting or broadband services, according to online news portal, The Malaysian Insider.

AAs, SAs and other techie stuff

In fact, all WiMAX and GSM cellular operators as well as broadcasters, satellite earth stations, satellite stations and other radio communications equipment are currently issued with AAs

Basically, AAs are short-term permits under the Communications and Multimedia Act 1998, allowing a an operator to use certain frequencies to operate a network facility of a specified kind for a specified purpose. AAs are valid for a maximum of five years, though they are typically renewed annually.

On the other hand, the SKMM defines as Spectrum Assignment thus: “A Spectrum Assignment confers rights on a person to use one or more specified frequency bands for any purpose consistent with the assignment conditions. The IMT-2000 (3G) assignment is an example of Spectrum Assignment.”

“The specified band to be assigned in a geographic unit must be consistent with the Spectrum Plan. An assignment is valid up to 20 years and the holder may transfer or trade the spectrum.”

Another way of looking at it is that AAs are like the Temporary Occupation Licenses (TOL) issued to residents of temporary dwellings, while SAs are like long-term leases. However, in both cases, the land still belongs to the government and likewise the radio spectrum. There is no equivalent of freehold land title deeds in perpetuity in the case of radio spectrum.

Meanwhile, the SKMM and the Minister himself have been criticised – quite often without much basis nor understanding - especially in blogs and some websites recently over issues related to allocations made from  the Universal Service Provision Fund managed by the SKMM, especially to finance the  one million netbook PCs to be given to students and deserving people living in areas under-served by communication infrastructure and the means for communications access.

The latest of course are allegations of “corruption,” “cronyism,” “lack of transparency,” and other alleged improprieties with regards to spectrum allocation and now AA assignment to YTL in the 700MHz band.

Clearing up misconceptions

Of course, while the viral nature of the Internet helps the rapid propagation of knowledge and information among people rapidly through copy and paste, it also helps spread ignorance, misconceptions and disinformation just as rapidly too.

One problem could be the lack of understanding of the differences between Internet Protocol TV (IPTV) services and this digital Pay TV based on the Digital Video Broadcast (DVB), MediaFLO and others.

Examples of IPTV include browser-based streaming videos such as You Tube and mySpace, current mobile streaming video services provided by mobile and WiMAX operators, including YTL, as well as TM's HyppTV and Maxis' IPTV which was due to have been soft-launched in the third quarter of 2010 but no news of it yet

These Internet-based video streams are all delivered over the cellular or WiMAX operator's wireless network, or the Internet service provider's copper or fibre network. In the case of YTL, it will be over its 2.3GHz WiMAX network, while in the case of Maxis IPTV and HyppTV, over TM's High Speed Broadband (HSBB) fibre network.

DVB TV on the other hand is a digital TV broadcast from a central location, much like existing analogue TV broadcasts and Astro's digital satellite TV broadcasts, bypassing the operator's network, thus saving on expensive network and equipment capacity enhancement costs.

The role of the operator's or Internet service provider's network is to carry the viewer's feedback and interactions back to the broadcaster, which generally consume little network capacity.

U Mobile, Malaysia's third 3G mobile operator announced the availability of Mobile LiveTV based on the DVB-Handheld (DVB-H) standard in the second half of 2007 but the service was scrapped in February 2009. However, it was Malaysia's only mobile operator to have launched commercial DVB TV service to date, while the only operator of a DVB TV services is Astro, which provides, Malaysia's only satellite TV broadcaster.

Enabling competition and opportunity

So while there's HyppTV to compete with Astro right now, when launched, YTL's pay TV will provide additional choice for consumers, as well as opportunities for local movie producers and content developers.

However, quite understandably, other wireless operators have been wanting to provide DVB-based TV, especially to suitable-enabled  mobile phones are concerned.

For example, Maxis had only conducted DVB-H trials and others too would like to also get in on the act and reap the benefits, while providing even more choice for consumers.

Well, the good news is that the 80MHz block in the 700MHz band will contain 13 “multiplexes,” each carrying  at least eight different standard-definition TV (SD-TV) programmes, or 104 programmes in all, which is quite a lot to be shared across several operators.

Then, once all the analogue TV broadcasters have migrated to digital by the 31 December, 2015 deadline for analogue broadcasts to be turned off, the spectrum from 470MHz to 790MHz or a total of 320MHz will be available for digital broadcasters, and based upon 104 programmes in 80MHz, 320MHz would support 54 multiplexes or 416 programmes, which is even a lot more.

Well, all this politicking in the media and blogs can only delay whatever progress which can be made in  positive directions.

700MHz for mobile broadband instead?

Meanwhile, on another front, the GSM Association has been lobbying, including through some local journalists, to urge Malaysia to allocate the 700MHz band for mobile broadband instead of digital TV.

As we wrote earlier in the story, What's all this fuss over the 698 to 806MHz band, in Comm & Tech Asia www.commtechasia.net, the GSM Association wants Malaysia to use the 698 to 806MHz band for mobile broadband, in harmony with nine out of 36 countries in the International Telecommunication Union's (ITU) Region 3.

The nine are also members of the Asia Pacific Telecommunity (APT), an organisation of governments across Asia, which currently comprises 34 member countries plus four territories and islands as associate members, while its affiliate members include equipment manufacturers and R&D organisations.

The APT's objectives are to spearhead development and innovation programmes in ICT in collaboration with telecommunication service providers, communications equipment manufactures and research & development organisations across Asia.

The GSM Association's members comprise over 800 mobile operators across 219 countries and it claims that using the 700MHz band for mobile broadband would create an estimated 44,000 new jobs by 2020, mostly in rural areas, compared to 2,100 new jobs if this spectrum was allocated to broadcasting. Also, mobile broadband would also account for a US$1.1 billion increase in Malaysia's GDP, with increased tax revenues of US$2.1 billion between 2014 and 2020.

These figures are based on the report, Socio-economic impact of allocating 700 MHz band to mobile in the Asia Pacific, dated October 2010. The GSM Association had commissioned the Boston Consulting Group (BCG) to produce the report.

The report claimed that: “Without access to the 108 MHz (698 to 806MHz) of bandwidth, effective rollout may become more difficult. There may be insufficient bandwidth for ensuring effective competition between mobile network operators, which may in turn reduce the range and quality of
services, and may lead to increased consumer prices for subscriptions.”

“Without implementation of the technical harmonisation based on the 2X45 MHz APT (Asia Pacific Telecommunity) bandplan, economies of scale in network equipment and handset production are lost.

“Countries which are out of sync with the agreed band plans will lose out, because harmonization maximizes economies of scale, limits the risk of cross-border interference and improves overall usage quality.

“...  in the worst case scenario, handsets may not be available, or the range of models available to consumers will be very limited. In the 'best case' scenario, failure to harmonize would raise handsets
costs, which negates some of the benefits of 700 MHz broadband.

“It is estimated that non-harmonization would reduce the projected increment in adoption by 10%, GDP increase by 2%, and other economic benefits by 16% or more,” the report added.

However, besides the nine APT members, the rest of its members have not gone along with 698 to 806MHz or have not yet decided.

The SKMM had decided on the 790 to 862MHz band for ITU Region 1 which includes Europe, Africa and parts of the Middle East, which would provide the required economies of scale in terms of equipment and handsets.

Moreover, Malaysia generally looks towards Europe as the reference for technologies and standards, while the 698 to 806MHz band was also identified for ITU Region 2 – i.e. North, Central and South America, as well as Greenland.

Malaysia's experience of European technologies such as NMT, ETACS, GSM and UMTS have generally been positive, while its experience of American technologies such as AMPS, D-AMPS and CDMA one (narrowband CDMA) have not been particularly encouraging, so likewise she prefers to abide by the frequencies for ITU Region 1.