Malaysia should re-nationalize the infrastructural aspects of the Malaysian telecommunication network, so things like last mile, pipes to foreign countries etc are re-nationalized.
Then get all the stakeholders together (MCMC, TM, Maxis, Digi, P1 etc..) and form a consortium, this consortium will own the infrastructure.
They will be responsible for footing the cost of expanding and maintaining the infrastructure, in exchange everyone has free access to last mile and other issues that compromise the competitiveness of the local ISP sector.
Any company willing to invest as a stakeholder in the consortium gets the same benefits, with maybe a tier based system to differentiate among the companies with more capital.
Low tier companies pay less to get in, but buy bandwidth from higher tier companies etc. Maintenance of the infrastructure at least locally will slowly be farmed out to 3rd party providers, helping grow local SME expertise and sharing the wealth with Malaysians who are willing and able.
Of course this plan is not flawless, but with careful management and handling of the issues that all partners will have it will be the best plan for the Malaysian people.
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