MEF Asia Working Group - 29 April 2010
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The second MEF Asia Working Group of 2010 took place on Thursday 29 April. Our MEF Member speakers, Ben Chong, Operation Relations Manager - Silverstreet Active Media and Colin Miles, Co-Founder & Executive VP - i-POP Networks, spoke about the the challenges facing the Malaysian and Singaporean Markets respectively, as new regulatory requirements are put into place by the communications regulators in each territory.
Suhail Bhat, Policy & Initiatives Director - MEF, was on hand to speak about the comprehensive changes set to take place within the UK regulatory regime. PhonepayPlus, the UK premium rate regulator is consulting on significant changes to its Code of Practice, which may impact the broader regulatory world.
You can download the Slidedeck Presentation free.
Q&A from the Working Group Meeting
Answers provided by Ben Chong, Operation Relations Manager - Silverstreet Active Media
Q. Are you aware of the universal service provision fee/tax by the Malaysian Communication and Multimedia Commission? How does that impact a mobile content provider’s value chain in your view? (apparently 6% are charged from operator payouts but guidelines are not very clear. They are being enforced by aggregators just now even though the notification is out since 2003).
A. Yes, I am aware of the Universal Service Provision (USP) fund. This applies to license holders (ASP and NSP) and if the weighted net revenue above a threshold. This weighted net revenue is based on a rule of accounting computation. If the license holders revenue (Malaysia business only) falls below the threshold (example RM300K), they will not subject to contribute the 6% USP fund. This USP fund started few years back and license hold should aware of this when apply the license from MCMC. The aggregators pass the 6% USP fund to the mobile content provider, that subject to the commercial arrangement between two companies.
Q. It would be interesting to talk about the various ARPUs in SE Asia - do you have recent numbers about that? SE Asia is not just one market so that makes it very complicated to promote services across borders. ARPU (or ARPPU) is a good indication of what one can expect.
A. The ARPU is varied over the countries in SE Asia. According to the Telco in Malaysia: 4th Quarter of 2009 (Maxis), Average Revenue per User (ARPU) for postpaid increased by 4% to RM107 while prepaid ARPU marginally decreased by RM1 to RM40. 1st Quarter or 2009 (Celcom), ARPU for its postpaid market declined 2.3% to RM101 from RM104 a year earlier. Prepaid ARPU fell 8.7% to RM41 from RM45 previously. 2008 (DiGi), ARPU contracted to RM56 from RM58 in 2008.
Q. What are the regulations covering ASP's in the Malaysian market place?
A. Application Services under ASP Class license:
- public cellular services;
- IP telephony;
- public payphone service;
- public switched data service;
- audiotext hosting services provided on opt-in basis;
- directory services;
- Internet access services;
- Messaging services.
For details please refer to SKMM or MCMC
Q. Has the double opt in requirement been implemented or is this still in consultation? I understand that the operators opposed this
A. Yes, at proposal stage. It is represented by the industry players such as mobile operators, mobile messaging players and MMCPA.