@MISC{Lee02telecommunicationsreforms, author = {Cassey Lee}, title = {Telecommunications Reforms in Malaysia}, year = {2002} }
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Abstract
This paper reviews the recent history and development of the telecommunications sector in Malaysia. Section 2 provides a brief historical account of the sector and the current structure of the sector. This is followed by a discussion on regulatory reforms in Section 3. Section 4 examines the impact of reforms in the telecommunications sector. Section 5 concludes by discussing the future policy agenda for the sector. EVOLUTION OF INDUSTRY STRUCTURE Physical Expansion The infrastructure sector plays a key role in Malaysia's economic growth and development. The sector's share of development expenditure in the various five-years plans implemented since 1966 has fallen in the range between 18 per cent to as high as 34 per cent (Lee, 2000). This emphasis on infrastructure development notwithstanding, the expenditures appear to be targeted mainly at the transport and power sectors. As a result, telecommunications indicators - such as the fixed line penetration ratio - remained relatively low particularly before 1980 (Table 1). In 1970, the fixed line penetration ratio was merely 1.3 per 100 population. This figure increased to 2.9 per 100 population in 1980 and 8.7 per 100 population in 1990. Significant gains in the fixed line penetration were made after telecommunications reforms were undertaken beginning 1987. By 1995 and 2000, the fixed line penetration ratio had risen to 16.6 per 100 population and 21.0 per 100 population respectively (note: the direct exchange line penetration rate is around 20 per 100 population). Concomitantly, cellular phone subscriptions have grown very rapidly since the early 1990s. The total number of cellular phone subscribers stood close to 84,557. By the year 2000, this had increased to 5.1 million subscribers. Table 1: Malaysia - Telecommunica...