An analyst feels that government intervention is essential while an economist says how such services are priced should be left to market forces.

Ahamed Kameel Mydin Meera, managing director of the Z Consulting Group, said the government should have a hand in ensuring that such services were accessible to all, especially during an economic crisis.

He said leaving such services in private hands would only enable interested parties to price some people out of a necessary service.

“It would only enable those with self interest to make a fortune. This will lead to a further decline in the standard of living,” he told FMT Business.

“It is important that there be government intervention to ensure service affordability,” he added.

Fahmi had said yesterday that he was in discussions with telecommunications service providers and the Malaysian Communications and Multimedia Commission (MCMC) to find ways to reduce rates.

Unlike Ahamed, Center for Market Education CEO Carmelo Ferlito said greater competition rather than government intervention is the more effective way to bring the rates down.

“We need a long-term strategy to liberalise the industry so that prices will come down,” he told FMT Business.

Nonetheless, he said, there still are constructive outcomes that can be drawn from Fahmi’s engagement with telecommunications stakeholders.

Former deputy communications and multimedia minister Zahidi Zainul Abidin said the priority now should be to strengthen telecommunications services in rural areas.

“Regardless of whether the cost goes up or down for the consumer, it is essential that the service be improved,” he told FMT Business.

FMT Business has reached out to telecommunications providers for comment, but no response has been received as of press time.