Business Overview of VoIP In Malaysia

Malaysia VoIP Operations.

In Malaysia, the voice service market is unique compared to other countries. In Malaysia IP telephony amd reselling minutes over the PSTN or combined is the medium to transverse voice traffic. Malaysia was ahead of their time with VoIP operators and systems, first introduced in 1995 during the birth of the internet. First introduced to home users, There was the PC-to-PC connection that connected multimedia PCs together with the condition that both users utilise the same telephony software and are connected at the same time. It was inexpensive but users had to put up with the low voice quality and lag time.

Then came the PC-to-phone method that provided slightly better voice quality but was inconvenient as it could only cater for a one-way connectivity. In 1997, voice services were introduced in the form of VoIP. This enabled market entry for new generation telcos. This was when VoIP calling cards were introduced as well as VoIP gateways and soft switches. The availability of this technology also allowed service providers to offer services to the more lucrative commercial market.

VoIP Business model in Malaysia

Various factors made the new millennium an interesting beginning for the IP telephony services industry in Malaysia. Most important among them are the liberalisation of IP telephony in 2000 and the introduction of over 53 IP telephony licensees. The economic slowdown and increased user awareness of this service have also increased the use of alternative voice services in both the consumer and commercial markets.

There are three different business models of alternative voice solutions in the market today. They are the retail pre-paid cards, post-paid accounts and call shops.

The different market characteristics between these three models are as listed are:

Prepaid Cards 
Sold in retail shops. Target markets are the non-local workers, students, foreign immigrants . Need to pay for local call charges if service provider does not have toll-free numbers.

Post-paid Accounts 
Mainly corporate accounts. Require high-level marketing executives to sell direct to customers

Call Shops 
Target markets are foreign immigrants, especially those with no access to a personal telephone. Provide telephones for customers to make direct international calls with no local call charges

Market forces

Some of the forces seen affecting the IP telephony market in Malaysia are:

Drivers

Deregulation and no barriers to entry, and therefore ease in obtaining a license for service provision. More providers in the market will spur the demand for the service. On a related note, more providers will also help educate the market.

Economic slowdown will result in more organisations seeking solutions to reduce overhead operating costs as these alternative voice services promise cost savings.

Creates a new business model for wholesalers. There is excess bandwidth capacity as only data run over the networks so far, therefore there is still substantial bandwidth left to run voice. Also increases voice traffic over under-utilized PSTN network.

Demand for value-added services will drive the development of alternative voice services, rather than the lure of cheap phone calls. Increasing numbers of service providers will be bundling together a range of IP services including VoIP with IP-VPN and other services, packaged as a total IP communications service offering.

Companies interested in setting-up a VocalScape representation in Malaysia should contact gibson@vocalscape.com. All of the models discussed are available via the VocalScape Turn-Key VoIP Business model and technologies.

Comments

[nor fazly abdul rahman]

hi.. i am a master degree student (majoring in economics). now i am doing my research titled how much malaysians respond to new technology --> i am focusing in VoIP.

i would like to know where i can get the data (i would like to study the trend of the voip)

i need your feedback and please revert back.thanks

[nor fazly abdul rahman]

hi.. i am a master degree student (majoring in economics). now i am doing my research titled how much malaysians respond to new technology --> i am focusing in VoIP.

i would like to know where i can get the data (i would like to study the trend of the voip)

i need your feedback and please revert back.thanks

[mohd suhaimi bin ab rahman]

hi..
i am the one of the an authorized reseller for the Tmnet malaysia berhad. at 1st, i was interested about VoIP system. i try to make market, looking for business sector for use VoIP system.
but after a few days, they seems like were not like that system.after that they take off all that auto dialer devices that Tmnet provided before. they are rather to use and old pstn system.

today, at malaysia now..Telekom already provide a lisence for up grading PSTN system to the digital.

i need some information.please reply

[arif]

just share with u , currently i do my job in voip segmnet focusing on voip clearing house..on the maketing and market side , i have no idea how the competitive it is, but on the traffic analysis the trend is quict good especially terminating to international traffic.

[shad zaman]

Hi,

We are one of world's largest VOIP players. We are looking for entering VOIP segment in malaysia.

Let us know, incase someone is interested for an association.

Warm Regards,

Shad Zaman

[David]

hi, i also focus voip technilogies and has partner setup the SIP server at china or HK, i wonder to know if setup callshop at Malaysia, that need license run it or not ?? Thanks,