Why are local authorities delaying internet infrastructure rollout?

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Local Authorities and Ancillary Business Interests Hamper Internet Infrastructure Rollout

Local authorities and bureaucratic processes are significant impediments to the installation and deployment of essential internet connectivity infrastructure in Malaysia. This delay is exacerbated by individuals and groups seeking financial gains, often linked to "ancillary business ambitions" within state-level political structures, which obstruct the pace of digital connectivity enhancement. Telcos frequently encounter disparate regulations across different local authorities and states for planning permissions and permits, hindering the progress of necessary infrastructure work.
Bureaucratic Hurdles and Varied Regulations

Telcos must navigate a complex web of varying rules and regulations imposed by numerous local authorities and state governments when seeking planning permissions and permits for infrastructure projects. This lack of uniformity necessitates repeated applications and approvals, each subject to different local interpretations and requirements, thereby slowing down the overall rollout process. For instance, obtaining the right to erect a telecommunications tower or lay fibre optic cables requires specific approvals from local authorities, even in less populated rural areas.
Ancillary Business Ambitions and Opportunism

A substantial obstacle to network infrastructure rollout stems from what is described as "ancillary business ambitions" tied to political figures at the state level. This manifests as opportunists approaching telco CEOs with proposals to extract financial benefits, often framed as making "cuts" from the perceived profitability of the telecommunications sector. This "irritating business ambition culture" surrounding state governments complicates the efforts by bodies like the Malaysian Communications and Multimedia Commission (MCMC) to promote telecommunications as a third utility.
The Push for Telecommunications as a Third Utility

The process of officially recognising telecommunications as a third utility, akin to water and electricity, is a multi-stage policy and legal endeavour. It requires a policy decision at the state executive council level, followed by amendments to local laws, their subsequent gazetting, and finally, their application and implementation by local authorities through established guidelines and procedures. As of the report, while the proposal stage for this recognition has been reached in states like Melaka, Penang, Terengganu, Kedah, and Perak, no state had yet completed the full process of state executive council approval, amendment, gazetting, and implementation.

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Why are local authorities delaying internet infrastructure rollout?

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