Penang as in the island and surrounding Georgetown area should not have any problems.

I frequent the areas in question by zangief like balik pulau, sungai pinang, teluk bahang and Mainland Penang, then it is a different ball game. 

Balik Pulau town should be ok.
Wife's hometown is Balik Pulau town, correct?

How come need to get a prepaid line just for balik kampong?

Ask them which telco. Or u check one by one maxis and celcom which one blacklisted u.

This is probably just his own policy, as he not able to check whether you've settled your bill and not worth his time to do for you, if got problem is your fault but he will have to mafan.

Why not just go directly to U? Or contact CnY Garage, he can do for you while you sit at home.

i also thought i nvr been blacklsit, some more all the telco i sign i opt fr auto debit using credit card. but in the end digi / umobile /celcom also blacklisted me when i want to mnp. i ask why, after that only found out that, the moment i mnp from telco A to telco B, yes that time to telco B is success as I still clean . But telco A no longer able to charge my last bill as i cancel subscription with them already. so credit card no much that transaction. thats consider a blacklisted. now when i want to mnp from telco B to telco C , telco C will not able to process it as they check the system say i still owe money at telco A.... 

so hv to walk in to their branch settle it and ask them print out the letter say i am clean if i want to mnp immediately. else i need to wait 24 hours at least to repeat the mnp.

thats my experience so far.

Read back a few pages and you will understand.

Also this is called billshock.

Umobile website stated clearly

During Registration : RM28 + GST = first month (full cycle month) subscription fees

Your first bill : The pro-rated month fees + 1 month advance access fees (deposit) + RM10 Stamp duty

example,

you activate on 15th July, this month will be pro-rated, will be charges (RM28+GST)/30*15days = pro-rated month usage fees

The RM28+GST during registration is advance month fees of your August.
It similar to Astro, unifi, telekom bill, on 1st Aug, you have to pay for August full month fees already.

In chinese we said, 一个月上期一个月按金(1 month advance fees and 1 month deposit)