Ridzuan is on the move
again. This short, wiry native Malaysian, who
studied telecommunications engineering at the University
of Missouri, has a terse way of speaking that reflects
an ingrained eagerness to get on to the next thing. We
step around a corner. The retaining wall that kept us
from looking outward is now only at shoulder height.
Earlier, viewed from street level, the city seemed a
jungle of buildings, overcrowded sidewalks, and
traffic-laden roads. Construction cranes loomed
everywhere, aggravating the tropical heat and noise. Now
the city unveils itself, and we can see its jagged
skyline up close.
Kuala Lumpur is nearly 150 years old, yet in many
ways it's a completely new city, with all the growing
pains of urban adolescence. A kilometer to the north of
us are the Petronas Twin Towers, which shimmer like
liquid, as if black oil and molten steel were poured
down from a cloudless sky. To our west is the KL Tower,
a graceful needle whose shaft is decorated in the
Muqarnas style, a traditional floral and abstract motif,
which is as common in the Islamic world as the
Corinthian column is in the West. An ever-increasing
number of 30- and 40-story structures populate the
spaces around these leviathans.
Yet of all the buildings in this metropolis of about
1.5 million people, the most important right now might
be the obscure titan on Kia Peng street on whose roof
we're standing. Here, Jaring's new wireless signal
radiates silently from two antennas. The new service
isn't so very fast—in the world of DSL (digital
subscriber line), 1 to 3 Mb/s is considered fairly slow.
Like DSL, this signal has a maximum range of some 5000
meters. Unlike DSL, though, it doesn't need any phone
lines, and that's important. Before December 2004, when
it officially began selling wireless service, Jaring had
to lease a circuit from Telekom Malaysia (which sells a
DSL service of its own) in order to give a customer a
high-speed connection. The awkwardness of that situation
is reflected in Jaring's meager 1-in-50 DSL market
share.
For Internet providers, in Malaysia and elsewhere, a
wireless network is a solution to a problem. For users
starved for broadband, though, it can be a salvation.
Not everyone can get DSL. Many customers live outside
the radius of reliable connectivity. In addition, the
central telephone office has to be equipped with an
expensive DSLAM (digital subscriber line access
multiplexer); many rural central offices are not. In
Malaysia's most remote regions, some communities have no
phone service at all.
It was back in
2003 that Jaring's CEO, Mohamed Bin Awang
Lah, concluded that his company needed a last-mile
network of its own. Despite his academic bent—he has a
Ph.D. in electrical engineering from King's College,
London—Mohamed is a hard-headed businessman, and this
was the sort of decision he has had to make repeatedly
in his career. He was the first to implement Internet
technology in Malaysia in 1983 (with dial-up connections
to Korea, Australia, and the United States) while a
professor and deputy dean of engineering at the
University of Malaya, in Kuala Lumpur. Then in 1986, Dr.
Internet, as I heard more than one person here refer to
Mohamed, moved to the Malaysian Institute of
Microelectronic Systems, a government R&D
organization, and began an Internet-access program that
would become, in 1992, Jaring. He built the country's
first fiber backbone using the Internet Protocol in
1999, its first virtual private network in 2001, and
SchoolNet, a satellite-based broadband network for 2000
remote schools, in 2004.
Jaring—the name is a Malay word that means simply
"networking"—was finally spun off as a corporation in
April 2005, but it is still wholly owned by the
government. (Telekom Malaysia, though publicly traded,
is similarly controlled, because the government holds
most of the stock. The two companies are, however,
controlled by different ministries.) Although Jaring had
a head start, today Telekom Malaysia serves 60 percent
of all households getting Internet access, about twice
as many as Jaring serves, a testament to the power of
telecom incumbency.
Mohamed's decision to go wireless was aided by a
quirk of Malaysian telecommunications—a ready
availability of spectrum. Two 16-megahertz-wide slots in
the 2.5- and 2.6-gigahertz bands became available.
Rather than sell them in a high-priced auction, the
government grants free licenses, and charges modest fees
for the spectrum only when it's used. So Jaring pays
about 6000 Malaysian ringgit per base station per
year—less than US $20 000 annually for the 10 base
stations it's built so far.
Mohamed opted for Soma's equipment after visiting a
demonstration network that this company operates in
Toronto. There were, and still are, a number of wireless
broadband alternatives. Mohamed's choice was grounded in
the short term: how could he build a network that would
start paying for itself almost immediately?
The answer, Mohamed soon discovered, hinged on some
questions of system design and performance for which
there were only rough guesses. The basic network is
simple enough. A subscriber gets a small device, which
is heavier, but not much bigger, than a cigar box. The
industry calls such a unit a CPE, for customer premises
equipment. Stick its power adapter into the wall,
connect it to your PC with an Ethernet cable, and
voilĂ —you're attached to the Internet, just as if you
had plugged your computer into a DSL modem [see sidebar,
""]. The technology for making this
happen is all pretty straightforward.
Yet, if you're trying to figure out how to make money
with the service, uncertainty abounds. How many
customers can a single base station support? How many
simultaneously? At what data rates? Over what distances?
How many people live in the coverage area? Which ones
can be expected to sign up? At what monthly rate? How
expensive is the base station? The CPE? Will a customer
buy or lease it?
They're all questions that Mohamed and his colleagues
had to face back in 2003, and I heard them asked anew
when I visited Jaring this past October. Representatives
of a large cellular company in India happened to be
viewing the network at the same time. Although much of
India still doesn't have access to broadband, for the
fraction that does, it's becoming a commodity, I was
told. There, the most basic level of DSL is available
for just $6 to $8 per month. And Soma's wireless
alternative is appealing in India for the same reasons
that it is in Malaysia: bad copper and long distances.
Soma's assessments of how its equipment performs are
based less on guesswork today than they were in 2003,
largely because of Jaring's still-formative experience.
Because signals are weakened by distance and by
obstacles like tall buildings, Jaring is selling its
service in Kuala Lumpur only within a 3-kilometer radius
of a base station, 2 km less than the nominal limit.
There's one area where more experience is greatly
needed. Soma claims that a single base station radio can
handle 500 users at once, and a base station can be
equipped with as many as six radios, pointed in
different directions, but, as of October, the Jaring
network had yet to see more than 200 simultaneous
connections per radio.