Malaysian cellcos pressured to cut rates

Dylan Bushell-Embling
22 Jan 2014
00:00

Malaysia's communications minister is pressuring the nation's operators to reduce call and SMS costs for consumers.

Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek told local media he wants operators to “sit down and think how to reduce the existing cost of using the [mobile] telephone,” Bernamareported.

Accusing operators of raking in “substantial profits,” he suggested that operators' corporate social responsibility obligations should extend beyond deploying towers in less profitable rural areas, and to reducing costs for consumers.

But the minister stopped short of threatening any kind of regulatory or legislative action for now.

Ahmad Shabery added that the government is committed to ensuring internet access facilities are available even in remote areas.

Malaysian mobile operators Celcom Axiata and DiGi have just extended a network sharing agreement for a further three years, and the two companies also recently signed a wholesale backhaul agreement with Telekom Malaysia. If lawmakers start leaning on the sector to cut rates, these kind of collaborations could prove even more important.

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