Energy provider Tenaga Nasional of Malaysia to venture into ICT

Tenaga Nasional, Malaysia's company currently engaged in the energy business - generation, transmission and distribution of energy, with assets in fibre optics laid along its national power grid and transmission lines, intends to venture into broadband services via its subsidiary Fibrecomm and through a tie up with communications company Asiaspace, as reported in the local newspaper New Straits Times.

Broadband usage in Malaysia is still extremely low with 110,000 subscribers or 0.44% of its population compared to its Asian peers, especially Singapore (31%), S-Korea (75%) or Japan.

There is also no real competition yet in the country with Telekom Malaysia clearly dominating the market, and even now in the current discussion, it is said that the issue of competition will have to be "sorted out" between the two local giants - for whatever this means.

It hopefully means that the consumer will benefit from the market entry. However, considering that a different mindset is needed when entering a new market segment, plus the experience of Malaysian consumers with the traditional services of Tenaga Nasional, consumers might just get the same of the old experience again.