Re: [ossig] Jaring Wireless Broadband $$

[Dinesh Nair <dinesh@xxxxxxxxxxxx>]

On Mon, 12 Jul 2004, Tze-Meng Tan wrote:

> > rm 50 per month ?
>
> Thats too low for them to survive

that's too low for any broadband provider to survive, given the size of
the malaysian market. increased penetration does not bring a drop in
pricing because the easy to cover areas have already been covered.
increased penetration will only come in thru expanding present coverage
areas into areas where larger trunks and more expensive backbone
infrastructure is needed.

> Jaring will have to pay both TM (malaysia 1/2 circuit and a US telco
> provider for us 1/2 circuit and US ISP port charges for the connect -
> will cost in the region of RM 50-80 million per annum per STM1 (155
> Mbps) With 100,000 subs - each demanding at least 512Kbps (in order to

not necessarily. many other telcos will pull your local PoP to singapore
where you connect into an IX or the like. the cost of an STM-1 (155Mbps)
is much, much lower than the above, more in the region of RM12-15mil
annually. in effect, the local ISP is pulling dark fibre/dedicated circuit
from KL (or johore if they have a local backbone) into the island nation
and then out to the world from there. the emergence of asia-wide
aggregators and IXes has helped in this regard. the logistics problem in
this however is getting a clean STM-1 link within malaysian boundaries
from the dominant telco.

couple this international bandwidth with BGP peering with major local isps
at EastGate and a potential broadband player could offer profitable
service in the RM80-RM100 range for 1Mbps/256Kbps ADSL type links.

Regards,                           /\_/\   "All dogs go to heaven."
dinesh@alphaque.com                (0 0)    http://www.alphaque.com/
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