The licensing regime as provided for under the Communications and Multimedia Act 1998 allows a licensee to undertake activities that are market specific. This creates opportunities for expansion into the industry particularly in the area of Applications Service Providers and provides for a more effective utilization of Network Infrastructure.
Under the CMA, there are four categories of licensable activities. Within the activity categories, there are two key types of licences:
a) Individual Licence requires a high degree of regulatory control which is for a specified person to conduct a specified activity and may include special
b) Class Licence is a ‘light-handed’ form of regulation which is designed to promote industry growth and development with easy market access.
Standard licence conditions apply to both individual and class licence and these conditions are set out in the Schedule of the CMA.
The four categories of licensable activities include:
- Network Facilities Providers (Both Individual & Class Licence)
These are the owners/providers of network facilities, namely infrastructure such as, cables, towers, satellite earth stations, broadband fibre optic cables, telecommunications lines and exchanges, radiocommunications transmission equipment, mobile communications base stations and broadcasting transmission towers and equipment. These represent the fundamental building blocks of the convergence model upon which network, applications and content services are provided.
- Network Services Providers (Both Individual & Class Licence)
These provide the basic connectivity and bandwidth to support a variety of applications. Network services enable connectivity or transport between different networks. A network service provider usually owns or deploys the said network facilities. However, a licensee providing connectivity services may use the network facilities owned by another licensee.
- Applications Service Providers (only Class Licence)
These provide particular functions such as voice services, data services, Internet access and electronic commerce. Applications services are essentially the functions or capabilities; which are delivered to end-users. These are retail services.
- Content Applications Service Providers (Both Individual & Class Licence)
These represent a special subset of applications service providers such as television and radio broadcast services, and services such as online publishing (currently exempt from licensing requirements) and the provisioning of information services.
For an Individual License, the general applicable fees are:
- Application Fee – RM10,000.00 per licence (non refundable);
- Approval Fee – RM50,000.00 per licence; and
- Annual licence Fee – 0.5% of Gross Annual Turnover (as reflected in the licensee’s audited account for the preceding year) or RM50,000.00 (per licence) whichever is higher
For a Class License, the general application fees are:
- Registration Fee – RM2,500.00.
Application procedures and full list of applicable fees and can be found HERE
(Source: The Malaysian Communications and Multimedia Commission)