However, according to Embedded Wireless marketing communications executive Oon Yeoh, this would mean that Malaysian ISPs must improve on their services to keep abreast with the competition.

“I was actually quite surprised that the deal did not go through but having more than one ISP is better than having a monopoly,” Yeoh told malaysiakini.

“The general quality of Malaysian ISPs has to be improved and more competition will encourage better services,” said Oon.

Yesterday, Telekom announced that it would not go ahead with its plan of buying over Jaring but the communications giant did not provide reasons for the withdrawal.

In early January, when Telekom launched a preliminary assessment on the possibility of acquiring Jaring, it drew flak from the IT industry leaders who had regarded it to be “a forced marriage”.

Moral duty

Jeff Ooi of USJ.com welcomed the playing of market forces, saying the competition should be on a level field and ISPs have a “moral duty” to provide the public with services of high value.

“Those (ISPs) who have received their licences but are yet to roll out any service, should have their licenses revoked,” he said.

Ooi noted that Jaring, Maxis and Telekom are the only main players now.

Meanwhile, ISL Services’ Sri Shanker said that he is “very happy” that the deal did not materialise.

“We depend on Jaring to access and send e-mails. Personally, I find that the services provided by Telekom is still lacking in quality and sometimes we incur losses due to that, but Jaring’s services are also getting bad now,” said Shanker, a senior business recovery manager.

Another IT figure, Tengku Farid of Skali.com described the decision as “good” but also cited the need to look at the pros and cons of the matter.

“The present local ISPs need to provide adequate access, with bandwidth and value-added services. There should be vapourising of charges,” he explained.

“Jaring and Telekom also need get adequate returns and that would make it possible for more ISPs to enter the market,” added Tengku Farid.

Foreign players

Echoing a similar view, IT consultant R Ramana explained that if Telekom was to take over, the message sent is that in the ISP industry there is only one controller and in the IT scene “that is not good”.

“This is a better decision as we must look at liberalisation,” said Ramana, adding that Malaysian ISPs are below par and already have problems competing with Thailand and Indonesia.

Ramana claimed that the main stumbling block in getting more ISPs into the industry is the issuance of licences and he urged the involvement of foreign players.

“As Telekom controls the main networks, the small players are afraid to commit huge investments.

“This is why we should open up the market by allowing foreign players from Hong Kong and Singapore. This would kickstart the local ISPs, as we are still very much a protected market,” he added.

Ramana also said that ISPs need to look into the issue of absorbing the costs as Malaysians are paying by the minute, unlike other countries where users pay by each call or receive free Internet service.

“They (ISPs) should not hold us to ransom,” said the consultant.