Why and Why Not Telco pass through the 6% service tax?

Since the very first second the announcement was made, every quarters are fuming on the extra burden they should bare if it goes through. Here, it involves everyone in Malaysia, even foreign workers who are mostly prepaid subscribers. On this topic, Finance Malaysia has some words to say.

Picture taken from bigmacky.wordpress.com

In this modern world, mobile phones has become a necessity to us. Some may say: "I can sleep without pillow, or lost my wallet, but I cannot separate from my mobile phone". As such, does it mean that telcos can held you "ransom" on using their services? Since this is called "service tax", did telcos do their part in providing the good services (if not the best)?

3 Reasons why Telcos should not pass through the 6% service tax?

1. Coverage is suck in certain areas, still. There are rounds of complaints on line-dropping issues. Yup. They fixed it after that. But, the same old problems come back to haunt consumers after awhile.
2. Customer service is suck. At least, I am using the largest telco's service in Malaysia. But, I did not proud to say that either. Because, the respond to solve my issue is suck.
3. Crazily high charges. Comparing with neighbor countries, you will found out why Malaysian are labeled as "rich". Even with the "Value Plans" offered, consumers here are still paying high charges, whereby the really rich telcos boost their profit margin by squeezing consumers.

But...

Does telcos need to get the approval from MCMC first? No.

Does telcos obliged to absorb the 6% service tax at the first place? No.

Then, why not telcos pass the extra burden to end users like us? Emm...

Service tax is imposed by government on all services being offered in Malaysia. No sector constrain. No industry constrain. If we're paying 6% service tax on food outlets or shopping malls, why not prepaid or post-paid mobile services? Who is the main beneficiaries from the 6% service tax? Government or Telcos?

Hey Malaysians, YOU got the answer?

Broad-Ban in Malaysia?

Forget about the old fixed line internet connections anymore. We have the on-the-go broadband services, which provide almost unlimited boundaries for internet lover to surf anytime anywhere. However, you may not know a very unpleasant scenario is happening in Malaysia (at least I found out now).

Although I comment about TM's monopoly status in fixed line internet connection previously, I still prefer Streamyx for its unlimited surfing, lower monthly charges, and stable connectivity. Most importantly, more than one people can online at the same time, without extra fees. Whereas, broadband cannot.

Don't know #1

Recently, I moved to a new area, and hopes to subscribe for Streamyx (fixed line internet service provided by TM). However, I was shock to found out that I cannot subscribe for Streamyx, because my area was under Maxis territory. Wow… Sounds like I am living in the battle-field, where Maxis won the game!!!


The reason given was that my area's telephone line is bought over by Maxis, and Streamyx needs the telephone line to connect. Since this was the only fixed line internet service you can find in Malaysia, and again thanks to TM's monopoly status, I have no choice, but to look for broadband service.


Don't know #2

Then, I subscribe for a broadband service, but, the connection is slow (running at below 100kbps during peak hours). Can you imagine how slow 100kbps is? It's like opening a single website until you felt asleep. So, I went to another service provider to en-quire  theirs. Thanks for his honesty, he told me that if you are staying near the mountain, and in an apartment unit above 5 storey, you can't expect to get a good connection.


Conclusions… Broad-Ban

Are we living in a business friendly society, in the expense of public's freedom of choice? 
First, Maxis is wrong by conquering certain areas, which undermine the choice of citizen there. 
Second, why TM agreed to let go some of its assets?


Finance Malaysia thinks that Rakyat should be given to freedom to choose for their preferred service. Business owners should cares about the difficulties faced by Rakyat. And, government should monitor the latest development which could affect the welfare of Rakyat. Internet services are very important our daily lives now. Oh my dear Malaysians.


*The telecommunication company is expanding its territory now. Would your area be the next battle-field?

The Preview of YTL Comms vs Astro

A lot of fighting happening on the business scene nowadays, with Proton-Fernandes and AirAsia-Tiger this year. In 2011, there will be a heat battle between YTL Comms and Astro, taking on the local broadcasting field by storm.

Proton vs Fernandes 
AirAsia vs Tiger Airways

Business Times reported that YTL Communications Sdn Bhd planning to launch a hybrid TV by end of 2011, with many industry observers wondered how it is going to break the exclusive screening rights that satellite TV giant Astro holds with various TV content providers.

"If you think you can do a monopolistic thing and control everything, I'm sorry, that era is gone. The game is over" said Tan Sri Dr Francis Yeoh, managing director of YTL Corp Bhd and executive chairman of its telecommunications arm, YTL Comms.

YTL Comms is going to collaborate with US-based Sezmi Corporation to deploy hybrid TV services in Malaysia and Asia Pacific, which will combine digital TV broadcast technology with YTL's fourth-generation (4G) wireless broadband services that would be rolled out soon.

What is hybrid TV?

With hybrid TV, consumers can view live or recorded local and cable TV stations, on-demand movies and TV shows and web videos on their mobile devices, their personal computers or their TV sets at home. It was like combining the services offered by Maxis, Astro, and Streamyx into 1 single platform.

Watch out for 18th November 2010 !!!

This is the date when YTL will launch its 4G mobile Internet with voice, which will cover 65% of the country's populated areas, right from day one. Let's wait and see. YTL said it will be monumental !!!

The battle with Astro...

As for my understanding, YTL Comms' new TV service will be based on pay-as-you-use basis.

• NO minimum fee
• NO strings attached
• World's 1st wireless quad play service, bringing broadband, voice, TV and video-on-demand together

Wow... Sounds interesting enough for all Malaysians, especially current Astro's subscibers. Let's seat back and watch the most interesting Battle of 2011 - YTL Comms vs Astro.