One in six Malaysians are still overpaying for broadband: iMoney survey
By Digital News Asia June 27, 2019
- 67% of respondents felt that broadband rates can be even more affordable
- 82% would switch their current package for one that offers more value for money
ACCORDING to the iMoney 2019 Broadband Survey, most Malaysians are feeling the positive impact of the Mandatory Standard on Access Pricing (MSAP) implemented by the Malaysian Communications and Multimedia Commission (MCMC) which came into effect in June 2018.
However, despite the resulting reduction in broadband prices by over 30% and the tenfold increase in the speed of the packages offered, one in six Malaysians are still paying more than what they should be paying, for their broadband package.
Currently, a 100Mbps broadband package costs between RM99 and RM129 per month in Klang Valley while a 30Mbps costs RM89 per month. Yet, the survey revealed that 17% of respondents are paying approximately RM200 per month for only 30Mbps, which is about 125% more in cost.
All major fibre broadband providers in Malaysia no longer charge more than RM100 for a 30Mbps plan, which means these respondents are likely still on their legacy plans, and not yet been upgraded by their providers.
According to the survey, despite being increasingly satisfied with the speed and stability of their broadband packages, 67% of respondents felt that broadband rates can be even more affordable. This could possibly indicate that Malaysians might be overpaying because of a general lack of awareness of the latest broadband rates.
Additionally, 82% of the respondents shared that they would switch their current package for one that offers more value for money. However, Malaysians may miss out on the best available broadband packages when they fail to review their broadband contract and compare it to the rates offered in the market.
So, what should Malaysians do?
With home broadband pricing and speed becoming increasingly competitive, it is the best time for Malaysians to continuously review their broadband plans to find one that fits their needs and offers the best value.
Based on iMoney’s data, people who took advantage of the pricing changes in the last quarter of 2018, ended up saving an average of 28% on their monthly broadband bills, particularly for the popular 30Mbps and 100Mbps broadband packages.
Despite the effort by the Government to lower the prices and increase the speed, there are still several Malaysians who do not have the competitive packages currently on offer in the market.
Out of those who expressed interest in signing up for a broadband package via iMoney in the last quarter of 2018, 32% of them were unable to do so due to the lack of coverage in their location. Despite having the necessary coverage, more than half (53%) of the applicants were not able to access the broadband package of their choice due to technical issues such as insufficient port allocations.
“Through our iMoney 2019 Broadband Survey, we can clearly see that MCMC’s efforts of implementing and enforcing the MSAP have been beneficial for consumers. The proactive steps taken by key players in the broadband industry have resulted in 66% of Malaysians surveyed being increasingly satisfied with the speed and stability of their broadband connection.
“However, there is still more to do to ensure all Malaysians can benefit from MCMC’s efforts. The next step is for all Malaysians to assess their broadband needs and take advantage of broadband packages currently available, to ensure they are getting better value for their money,” said Mitul Lakhani, group chief executive officer of the iMoney Group.