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TM HSBB Initiative and the Need for HSBB Classification: Creating New Value in Malaysian Real Estate and Housing Industryby

Dr. Shahrudin MusliminChief Executive OfficerTM Research & Development

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TMR&D since 1st Jan 2001

TMR&D, a wholly owned subsidiary of Telekom Malaysia Bhd.(TM) started its operation on 1st January 2001 as the R&D & commercialisation arm to support

the current and future businesses of TM. We achieved the prestigious ISO 9001-2000 certification in October 2002.

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Activities at TMR&D

• To identify and undertake R&D activities in ICT• To develop, enhance and upgrade all aspects technology. • To conduct studies, consultations, advisory, testing and management

services in its area of expertise.• To use the knowledge and understanding gained from research

towards production of useful materials, devices, systems and methods.

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MYICMS 886 STRATEGY

* Source from MCMC Website

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National HSBB Project

Project Name : High Speed Broadband - HSBB

Objective : To provide a min of 10Mbps to every user by 2012

Target Area : Penang, Klang Valley and Southern Johore

Coverage : 1.3million household by 2010

Ministry of Energy, Water and Telecommunications

Suruhanjaya Komunikasi & Multimedia Malaysia

Sept 2007 – TM was awarded the HSBB project as part of a PPP (Public-Private Partnership) & TMR&D is to provide Technological POC

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New Applications under NGN

* Source from MCMC Website

Present Status

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TMR&D HSBB Proof of Concept

1. GEPON project – studies and development of GEPON OLT & ONU (ended in December 2006)

2. TMR&D GEPON trial (July 2007)– the trial was conducted at a high rise residential areas where the participating customers evaluated the triple play service offered to them.

3. During the trial, members from TMR&D was able to better understand the customers’ expectation.

4. Along side the GEPON system, other inventions from TMR&D such as ADSL2+, Broadband Power Line, Residential Gateways and IPTV Set Top Box were tested during the trial

5. Expertise, knowledge & experiences were shared among the TM Group

ONU

OLT

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TMR&D in support of HSBB

SDF Room Cabling Splitter located at riser

Triple Play Services

SOHO Setup

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Feedback from Customers @

Trial site

Knowledge gained through visiting overseas

Operators &Contractors

Knowledgegained through visiting potentiallocal deployment

sites

Internal FTTHProject &

AwarenessProgram

Knowledge on current practices

via attachmentwith operation

dept. in TM

Benefits from Proof of Concept (POC)

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Knowledge gained from POC:

Key Technical Challenges

Customer Equipment: Do I have to rightequipment and if notwhat do I need to buy?

Competency:Quality of the network?How exciting & compelling are the

services?

Civil & Construction: Does my home supportFTTH?

Content: In what way I am able to enjoy the extra bandwidth?

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Knowledge gained from POC:

Importance Civil & Construction Issues

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Real Estate & Housing Industry in Malaysia

• RM77.14billion of housing transaction in 2007 (growth of 25% from 2006)

• 47.3% from residential real estates with a total value of RM36.48%

• Abolish of real property gain tax (RPGT) in 2007 & approval to draw up to 30% of EPF

• Promotion of Malaysia: My 2nd

Home (MM2H) program by the Ministry of Tourism for expats

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Value add to real estates

TapWater

TelephoneLines

Lift

Centralised Air

Conditioning

Accessto publictransport

GreenHome

HomeSecurity

FTTH

* Adapted from Taiwan MOEA

5% 7% 3% 2% 2% 2% 3% 5% 3~8%

CentralisedHot

Water

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Objective of Classification Concept

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Success of Similar Concept in Korea

Increase in internet take up with enforcement of Authentication System

Emblem Concept is championed by the government

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Success of Similar Concept in Taiwan

Certification System in Taiwan

• Although not enforced but by embarking on the concept of ‘Digital Home’, property developers such as Farglory has make its mark the urban regeneration and real estates (both residential and commercial) under their name are selling like hot cakes

Digital Home with FTTH

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Appreciation of Real Estate with

Broadband Facilities

• Loma Linda Community

City Council supports FTTH program for new real estate projects.

• By having FTTH

infrastructures, the real estate price has risen between US$4000 –US$14000.

• Aurora FTTH case

study performed by the Council of Victoria, Australia shows that

broadband is the next ‘utility’.

• Developers who have ignored the FTTH

trend find themselves selling their properties at discounted prices of at least AUS$5000.

• Real Estate developers

found that Broadband ready properties are soon sold out sooner

after launching as compared to

conventional properties.

• Also FTTH supports the

idea of digital home which in turn open up

vast markets for new high tech products.

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Benefits to TM

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Benefits to Government

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Benefits to Property Developers

* Estimates based on Taiwanese statistics

Increases property sales

value (properties

appreciate by *3%~8% with HSBB ready

infrastructure)

Commercial/ Sales

advantage over developers who are reluctant to adopt the HSBB

concept

Increases leasing value of

both commercial

and residential properties

Corporate Visibility as a leader in the

industry

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Way Forward:

Proposed Categorisation

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Way Forward:

Possible Service Package Offerings

Category of

Building

Sample services from Telco

A

Sample services from Telco

B

Class 1 (5 Star Package)

FTTH – max 100Mbps with

the use of GPON* Prerequisite: Class 1 Building

Platinum Package

ETTH – max 1Gbps with the

use of MetroEPrerequisite: Class 1 Building

Gold Package

FTTH – max 100Mbps with

the use of GEPONPrerequisite: Class 1 Building

Class 2 (4 Star Package)

FTTB/S – min 10Mbps with

the use of VDSL/ADSL2+* Prerequisite: Class 2 Building

Silver Package

FTTB/S – min 10Mbps with

the use of BPL or Ethernet CablesPrerequisite: Class 2 Building

(3 Star Package)

FTTB/S – min 10Mbps with

the use of WiFi* Prerequisite: Class 2 Building

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Way Forward: Proposed Certification Process

Pro

cess F

low

•Adapted from Korean model

Step 1

Step 2

Step 3

Step 4

Local TM Network Development

TM

Industrial Association

GovernmentalBodies

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Involvement from:

Industrial Association Governmental Bodies

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Way Forward: Technical Guidelines

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Way Forward: Role of TMR&D

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Beyond HSBB

e ee ™

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eee-lifestylee ee

e ee

What is eee-life?

™

™

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Concept : eee-lifestylee ee ™

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Conclusion

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Acknowledgement

Suruhanjaya Komunikasi &

Multimedia Malaysia

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