From its beginnings in 1995, the Internet in Malaysia has become the main platform for free discussion in Malaysia's otherwise tightly controlled media environment. As of Q2 2015, Malaysia has broadband penetration rates of 91.7 (per 100 inhabitants) and 72.2 (per 100 households).
The year 1995 is considered the beginning of the Internet age in Malaysia. The growth in the number of Internet hosts in Malaysia began around 1996. The country's first search engine and web portal company, Cari Internet, was also founded that year. According to the first Malaysian Internet survey conducted from October to November 1995 by MIMOS and Beta Interactive Services, one out of every thousand Malaysians had access to the Internet (20,000 Internet users out of a population of 20 million). In 1998, this number grew to 2.6% of the population. The total number of computer units sold, which was 467,000 in 1998 and 701,000 in 2000 indicated an increasing growth.
In 2005 the National Public Policy Workshop (NPPW) proposed a strategy to increase the uptake of Information and communications technology (ICT) and the Internet. Among the outcomes of the NPPW was the High Speed Broadband initiative launched in 2010. As of July 2012 Internet users in Malaysia reached 25.3 million. Out of that number, there are 5 million broadband users, 2.5 million wireless broadband users and 10 million 3G subscribers.
As of Q2 2015, Malaysia average internet speed is 5.0 megabits per second (Mbps), and shows a 17 per cent year-on-year improvement to broadband speed. Malaysia is ranked 70th place worldwide by the 2015 State of the Internet (Soti). The country internet is one of the slowest and expensive in the world.
The Malaysian Communications and Multimedia Commission sets a low threshold for broadband. It defined broadband as:
Any service beyond the scope of existing PSTN/ISDN and 2G cellular networks
With data rates that exceed the normal voice-related speed (56 kbit/s for PSTN and 64 kbit/s for ISDN)
This definition is far below the primary rate interface lower limit defined by the International Telecommunications Union in ITU-R F.1399.
Cellular broadband
Cellular or mobile broadband services are provided by:
As of June 2012 there were 1,705,000 DSL connections. TMnet, a subsidiary of Telekom Malaysia, is Malaysia's largest Internet service provider. While there are many ISPs in Malaysia, Telekom Malaysia's ownership of the nation's last mile connections restricts competition to densely populated areas in major cities. Since there is no local loop unbundling, TMnet enjoys a virtual monopoly of the broadband market.
Fiber to the building (FTTB), Office (FTTO), and home (FTTH) services are provided by:
VTelecoms Berhad offers Internet-over-fibreoptic (fibre optic DIA), Metro-Ethernet Over DWDM for Enterprises and MNCs, using the latest Networking Technologies available to date. VTelecoms Fiber Infra coverage covers entire KlangValley including KL City Centre, Petaling Jaya, Shah Alam, Subang Jaya Ampang, KL Sentral etc. VTelecoms also has its Regional presence in Singapore, HongKong and Thailand and expanding its regional and global coverage regularly. Currently (as of 2013) VTelecoms has successfully established its footprints across Malaysia connecting Thailand to Singapore over multiple Fiber routes. Being the Only Malaysian Telco having its telecom business footprints in various Asian countries, VTelecoms hold #1 position in Malaysian Telecommunication market. VTelecoms is a part of Vasseti UK Plc (Frankfurt listed), with its global Telecommunication arm "VTelecoms Global Limited".
City Broadband offers broadband-over-fibreoptic (fibre optic broadband) on Ethernet and GPON technologies to office buildings, residential houses, condominiums and apartments in Cyberjaya and The Horizon, Bangsar South City, Kuala Lumpur at competitive rates. City Broadband offers both best-effort and dedicated broadband services. City Broadband Corporate packages offers dedicated bandwidth that are tailored to customer's bandwidth requirements from as low as 1Mbit/s and up to 50Mbit/s. In Cyberjaya, City Broadband services are delivered to the customer premises via Cyberjaya Metro Fibre Network, CMFN
Cyberjaya Metro Fibre Network, CMFN - Fiber to the Building (FTTB) and Fiber to the home (FTTH). CMFN leases dark fiber connectivity and Metro Ethernet (Metro-E) services to telcos and enterprises in Cyberjaya. Employing Open-access network (neutral carrier) with ring topology, it offers neutrality and redundancy throughout the network. As of December 2014, CMFN has connected more than 100 buildings including 9 Data Centres and more than 4,000 home passed in Cyberjaya.
MacroLynx - Fiber to the Building (FTTB) and Fiber to the Home (FTTH). Partnership for delivery to major clients such as KLIA, Mid Valley City, GTower, and Menara Binjai.
Metrofon - Fiber to the Home (FTTH). Provide fiber optic connection to condominiums and apartments in Kuala Lumpur city and Selangor area.
Penangfon - Same company as above. Provides services only in Penang island.
Maxis High Speed Home Broadband - Officially launch on 31 March 2011. True fibre optic connectivity to home with speeds of 10 Mbit/s and 30 Mbit/s. Availability of service is based on the coverage of the TM UniFi service.
TIME Fibre Broadband - Officially launched on 2 February 2010. True fibre optic connectivity to home with speeds of 100Mbit/s, 300Mbit/s, 500Mbit/s. Available at Mont' Kiara Pines, Mont' Kiara Astana, Mont' Kiara Sophia, Mont' Kiara Pelangi, Mont' Kiara Palma, Mont' Kiara Damai and Mont' Kiara Bayu. More locations to come.
TM Unifi - Telekom Malaysia Bhd has spent about RM1.9 billion, with the inclusion government funds amounting to RM990 million in the installation of high-speed broadband services throughout Malaysia. The four initial areas that will be covered by high speed broadband services, that is being launched in March 2010 are Shah Alam, Subang Jaya, Taman Tun Dr Ismail and Bangsar. The benefits announced with the implementation of high speed broadband include smoother e-commerce activities, Internet-based health services, improved Voice-over-Internet Protocol (web-based telephone service), websites with more detailed pictures and graphics, as well as faster data downloads. It has been promised that video-streaming will be smoother and Internet Protocol Television (IPTV) could take off in Malaysia. As of 2012, Unifi has 300,000 subscribers.
Wireless broadband
Wireless broadband services are provided by:
Wi-Fi Hotspots are provided by:
Internet access over leased lines is provided by:
City Broadband - City Broadband provides high speed dedicated Ethernet broadband-over-fibreoptic in Cyberjaya with Gigabit speed capacity. City Broadband customers don't need to lease a separate line a.k.a. "leased line" to get the required dedicated bandwidth since the digital fibreoptic link/line comes together with City Broadband dedicated bandwidth at no additional leased line charge. That's why City Broadband is also known as broadband-over-fibreoptic provider.
TM METRO-e - Dedicated internet access from 4Mbit/s to 1Gbit/s.
TIME Ethernet Leased Line - TIME Ethernet Leased Line provide businesses with a permanent connection for mission critical applications that demand guaranteed bandwidth performance to support voice, data, video and Internet applications. It is able to deliver point to multipoint connectivity for greater flexibility.
TIME International Leased Line (IPLC) - TIME International Leased Line provide dedicated interconnection solution that enables transmission of all data types through telecommunication network in digital format, including voice, text, image, video and graphics with high secure and reliable connection.
Very-small-aperture terminal (VSAT) satellite services are provided by:
H-Vision IPSTAR Satellite Broadband - 2-way satellite broadband connection.
Sabah.Net IP STAR Satellite Broadband - 2-way satellite broadband connection spot beam.
TIME Satellite Broadband - Provide high speed Internet of up to 4Mbit/s/1.5 Mbit/s. This service covers the entire nation and is accessible even at under-served, remote locations.
On 16 March 2007, Malaysian Communications and Multimedia Commission granted WiMAX licenses to the following companies:
Bizsurf (M) Sdn Bhd
MIB Comm Sdn BhD
Asiaspace Dotcom Sdn Bhd
Redtone-CNX Broadband Sdn Bhd
MCMC expected the companies to roll out their WiMAX services to 25% of the population in the areas given to them by the end of 2007. By the end of 2009, the companies are expected to provide their services to at least 40% of the population in the areas they control. The Internet access speed is expected to be no less than 1 Mbit/s.
The Ministry of Energy, Water and Communication targeted 50% household penetration by 2010 from the current household penetration of 18% as of May 2008.
On 30 May 2011, the Malaysia government started to ban some websites, mostly file sharing websites, despite a promise not to censor the Internet made by the sixth Prime Minister, Najib Razak.
