Wednesday August 20, 2008
Telcos fined RM50mil last year
By M. KRISHNAMOORTHY

KUALA LUMPUR: Telcos were fined RM50mil last year for short-changing consumers and the Government will withdraw their licences if they fail to deliver services as promised.

Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the licensees were fined for, among others, not providing even 50% of the reception or speed as promised to consumers, failing to adhere to the business plan promised to the Government, quality of service which was below the set standards, breaching contracts and not having adequate base stations and towers to fulfil service requirements.

“If they have promised in their business plan to provide a speed of 1Mbps, they should at least provide 70% (700Kbps) 90% of the time.
New service: Shaziman (right) listening to an explanation from the executive vice-president of P1’s product and strategy department James Chong (second from right) during the launch of the P1 WiMAX services in Kuala Lumpur Tuesday. Looking on is Lai (left).

“I am waiting to take back the licences and give them to other companies that are serious about serving consumers if telcos and digital service providers fail to perform as agreed in the terms and the conditions with the Malaysian Communications and Multimedia Commission (SKMM),” Shaziman said after launching Packet 1’s (P1) WiMAX services yesterday.

He added that “the best efforts as currently adopted by broadband players now are unacceptable.”

Rolling out, he said, was more than just building a tower, launching new services or setting up WiFi spots.

“The Government is serious in ensuring that broadband Internet access benefits the rakyat, especially in semi-urban and rural areas.”

Shaziman reiterated that failure to comply would be subjected to penalty, possibly in the form of withdrawal of the respective performance guarantee bonds of up to RM7.7mil pledged with SKMM.

“Since WiMAX is a new technology which requires quite a substantial investment, it would be prudent for industry players to share infrastructure to minimise financial burdens and wastage in duplication of investments,” he said.

Commenting on the minister’s call to improve services, P1 chief executive officer Michael Lai said that his company, as the first to roll out WiMAX in the country, was committed to providing at least 70% of the requirement on speed.

“We will also implement our projects according to the business plan and develop our services in clusters to meet with our deadlines.”

P1's WiMAX service offers speeds of 400Kbps, 700Kbps, 1.2Mbps and 2.4Mbps at monthly rates ranging from RM59 to RM239 for personal and RM69 to RM339 for business plans.

During the promotional period between Aug 20 and Sept 30, P1 is giving away a free modem worth RM999. The upfront registration fee is RM100, with activation fee of RM50 and installation fee of RM80.

Signing up can be done through the website www.p1w1max.com or by calling 1-300-800-888.

P1's WiMAX broadband is now available immediately in the KLCC and Golden Triangle areas, Pekeliling, Setapak, Gombak, Seri Rampai, Sentul, Pudu, selected areas in Subang Jaya, USJ1, USJ7 and the Subang Hi-Tech area.