Exclusive Interview with Michael Lai,CEO of P1 WiMAX Malaysia
Michael Lai, Chief Executive Officer of Packet One Networks (Malaysia) Sdn Bhd (“P1”) passionately believes in enriching lives through the power of high-quality, high-performance broadband connectivity.With over 20 years of experience in the Information, Communications and Technologies (ICT) industry, Michael leads one of the world’s leading WiMAX telecommunications companies, with the challenge to develop P1 right from ground zero.

Today, P1 is at the global forefront of commercial WiMAX deployment. P1 W1MAX is Malaysia’s leading WiMAX telco and is currently the world’s largest deployment of 802.16e 2.3GHz WiMAX network, outside Korea. P1 is also the first Intel-invested WiMAX telco in Southeast Asia.
Soon, WiMAX may be hitting your country. Is WiMAX the best technology in current time? We had conference call with Michael Lai,CEO of P1,to get a more detailed and personal experience in 2.3GHz WiMAX deployment in Malaysia.
WiMAXian (W) : You mention about “Broadband is not a privilege, it’s a right for all” , can you explain more ?
Michael Lai (ML) : I actually believe that there are two mega trends that happen in the world for the last 20 years especially in telecommunication world. The first mega trend has change the way we communicate through voice and there is cellular voice.
Today I believe even in Indonesia cellular voice penetration is quite up to 60%-70% right now. Look at Malaysia cellular voice penetration way back in 2000, it was 9 years ago that the cellular voice penetration was just about 10% and today 2009 cellular voice penetration is up to 93% in 9 years time.
Same thing we believe and same thing what happen to the second mega trend in telecommunication industry telecommunication world is the broadband phenomenon, the broadband mega trend.
And today for example in Malaysia broadband penetration of population only 7%. I believe the same trend what happen to the broadband mega trend exactly what happen to the cellular voice phenomenon or mega trend would go from 7% in Malaysia will over 50% in the next 3 to 5 years.
And with that I believe with the power of broadband how we can get us connected, not just to broadband technology but to life to act complete and enhancement to telemedicine, to distance learning,things that we’ve been talking about for many many years with internet 1.0.
We brought internet 1.0 way back to 1995 truly real connected world will become reality but in order to become reality broadband must everybody rights and not privilege and everyone doesn’t matter what economic background where you are in the world you must have ability and you must have rights to get access to full product broadband soon that you can truly connected to the real connected the world.
W : We have 3G. We have Wi-Fi. Why does the world need WiMAX ?
ML : Very good question.First of all Wi-Fi is just great we have because one broadband but its only hotspot in order to get access to Wi-Fi you have go to particular spot and the spot is very small.It’s good start but when you figure this you cannot get it anywhere,anytime,anyhow you want it. You got a good spot and computer you get access to Wi-Fi but it’s a good start and you should look at WiMAX as hotspot of Wi-Fi as big as a city, as big as a country. And 3G is also good but 3G comes from voice technology trying to do broadband, the architecture it self built based on the cellular voice technology which started 20 years ago so it’s like build wide car whereas WiMAX technology is built as the next generation technology 4G technology that build up internet for the IP world, internet protocol world, so we’re talking about very different way approaching broadband.
By using the right technology,by using the right architecture, by using the right internet protocol to actually get access internet so in the end WiMAX is the only technology today, today, commercially available that we can use it to mobilize the internet.
W : What is the critical point when P1 deploy WiMAX in Malaysia ? Deploying a new network throughout a major city has to be difficult. Tell us about the process.
ML : What is the biggest challenge for any quick view wireless mobile broadband operator ? It would be the deployment. I think in the most country would happen similar challenges, deal with local council, deal with permitting those are normal common challenges for any mobile even cellular operator. We have to go to the same journey.
So we have to work very diligently and act also very diligently to ensure that we get coverage up as soon as possible as the process. because the response whatever coverage has been very encouraging. in fact I only say if we built it ,they will come, so what we need to do exactly get up coverage up as fastest, as soon as possible because our biggest challenge is not demand, our biggest challenge is supply, to provide good wireless broadband,good mobile broadband to citizen of the world as fastest we can through WiMAX.
(P1 won the 2.3 GHz bid on March 2007. January 2008, P1 became the first amongst the four WiMAX license holders in Malaysia to appoint Alcatel-Lucent technology partner for WiMAX deployment in Malaysia.August 2008, P1 launched its WiMAX service commercially.P1 has reach the largest WiMAX subscriber base in Malaysia with over 20,000 subscribers as of February, 2009. It means 6 months since P1 launched on August,2008.)
W : What factors influence where you target for P1 next roll outs? You have reach the largest WiMAX subscriber base in Malaysia with over 20,000 subscribers (as of February, 2009. it means 6 months since P1 lauch on August,2008.).P1 expects to deploy approximately 700 new base stations by the end of the year. ZTE’s deployment will focus on rural regions and the states along the East Coast and in Penang.Why did you choose ZTE for the second phase ?
ML : Multi vendor strategy is always been our strategy for long term but we started WiMAX for last year so we decided to work with one technology partner in the beginning, because we are the one who first roll WiMAX at that point at time .It was last year. So we decided to work with one technology partner pointed to Alcatel-Lucent the first our technology partner so we can learn because WiMAX was very new and P1 being world’s first WiMAX .Both company will learn as well.So after last year we believe both company learn a lot to push WiMAX technology to the next level and ready for long term strategy to have multi vendor, multi partner strategy.In fact this multi vendor strategy as I see as an important engine right now to Malaysia.
Now ZTE joining us as technology vendor,technology partner. We have alternative engine,they can help us to enhance our coverage and speed and so that one reason why P1 took ZTE as second technology partner to help us to enhance our speed also time to market and the top of that the multi vendor strategy is long term strategy is to be able to make competitiveness and also competition among of technology provider so no one sit on the top so you can keep progressing the benefit not just for Packet One but also benefit for vendor themselves so both parties whoever we working with become better and the most important is benefit to our customer in the end of day.
(P1 will spend around MYR1 billion (USD274.3 million) to support the WiMAX network roll out over the next five years, and has said it is on track to reach 35% population coverage for its WiMAX network by the end of 2009.)
W : How will P1’s services change or grow over time? In January 2009, P1 launched Malaysia’s first social networking site Ruumz (pronounced “rooms”) a social networking portal.What is the target of Ruumz ?
ML : Our strategy has always been in what terms as DNA strategy, just like human being,you need a proper DNA, everyone has DNA.In Packet One Networks in any new technology such as technology evolution such as WiMAX you must have proper DNA in business world.
DNA in this case,“D” stands for Devices, “N” stands for Network which is WiMAX network, and “A” stands for Application.
So that why we are one of the very first Intel invested in 2.3 GHz mobile WiMAX company in the world by Intel. the reason why we had Intel as one of our very strategic partner for DNA strategy.Without Intel there is no WI-FI today. Without Intel they won’t be WiMAX tomorrow.WiMAX chipset manufacturer in the world need power and economic scale of Intel to prepare market for the next generation WiMAX world.Just like what Intel has done for Wi-Fi world.Today open up any notebook Intel powered notebook today you can get access Wi-Fi easily and seamlessly.Same thing will happen in future,in fact already in U.S. and they’re coming to South East Asia very soon 2.3 GHz sometime next year.
So devices “D” for Intel coming and definitely you got 4G WiMAX “N” network and last but not least you need to have “A” application.That’s why we had Ruumz. Ruumz is the first Asia social network portal do by Asian for Asian with that we hope a lot more application which relevant for Asian.So Ruumz is part of DNA strategy; Device, Network and Application.
W : As you may know Indonesia 2.3 GHz auction schedule already announced and government’s policy to support local WiMAX industries by obligate the auction winner to utilize at least 30% local content. Based on your experience what is your suggestion for WiMAX deployment in Indonesia ?
ML : We have passion and we are watching Indonesia very close. because Indonesia has good opportunity to actually provide WiMAX and provide broadband as wide as all over Indonesia. being one of the largest country in the world.For what we understood so far, WiMAX (Indonesia) technology proposed to roll on 2.3 GHz which is great , the same spectrum with Malaysia, but in 16d technology.
Our opinion that the world has move on to 16e technology. So from perspective of not wanting WiMAX to do mobility. You can still go on with 16e technology but using i believe it power of advice to limit the use it mobility in beginning but when the time is right, let WiMAX do mobility you can always open it up because technology is built from mobility at the poin time.Instead you have to upgrade it from 16d technology. What the challenge that most of the biggest wimax technology vendor in the world today is not even do 16d at all.
From our opinion what chalenges, in terms of technology support ,in term of technology roadmap, in term of WiMAX Forum certification, in term of ecosystem partner, those are challenges that potentially willhelp by build 16d instead going to 16e.
We are very excited that Indonesia government initiate and has taken the next step which is WiMAX for Indonesia. That very exciting we believe country like Indonesia even way of changing competitive like the country of Malaysia because in terms of traffic coverage even much much bigger and wireless technology for broadband is the only way to go and WiMAX is the best technology to do.
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