CHAPTER 1

INTRODUCTION

Introduction The network services first enter Malaysia in the early 1990s during the management of former Prime Minister, Tun Dr. Mahathir Mohamad. The network service which perceived to be some kind of policies that may favor the political supporters was not accepted by some parties. Hence, the service was constraint to gain acceptance by public and did not had any improvement. After the Asian financial crisis which hit Malaysia on year 1997-1998, a new era of market was transformed. A standalone policy and regulatory body known as the Malaysian Communications and Multimedia Commission (MCMC) was formed to bring new length of transparency and public liability to technology sector administration.
Since then, broadband connections were widely spread in the market. For example, 1700 broadband connections were provided in approximately 800 libraries and expanded to public location where Internet can be found at most towns. As the government keep pushing toward the development of a broadband society, a large total number of broadband connections of all kind increases from 19,000 to over 200,000 in year 2002. While in year 2004, the government determines to set an amount of RM 800 million to build and improve broadband connectivity at countryside and outskirt.
As Malaysia pushing ahead to create a broadband society, broadband service provider can grab this opportunity and promote the service to the consumer. Malaysia has been continuously proving itself as central place for Information Technology in the Asian region. As a result, Multimedia Super Corridor project are developed and create attraction for many high-tech companies to invest in Malaysia.
However, the national broadband was less attractive and failed to achieve a targeted figure of 15% by year 2010 set by the government. The broadband service provider may spend their money