Malaysian WiMAX Operators Fined for Missing Coverage Requirements

Malaysia's telecoms regulator has fined three of the country's four WiMAX license holders for missing their network rollout targets. The Malaysian Communications and Multimedia Commission (MCMC) is reported to have issued the fines last week, reported The Star newspaper. All three operators are appealing their fines.

The players fined are YTL e-Solutions (RM1.9mil), AsiaSpace (RM1.7mil) and REDtone International (RM200,000) for failure to meet the 25% population coverage by the end of March.

Last month, the government warned the operators that it has the power to revoke their operating licenses if they do not meet minimum coverage requirements by the end of this year.

Tan Sri Francis Yeoh, head of the YTL Group, told StarBiz that YTL e-Solutions would appeal against the decision on the basis that the company would be ahead of the next roll-out target of 40% by mid-2011.

REDtone CEO Zainal Amanshah said the company had written to the MCMC numerous times complaining that the block of spectrum allocated to it was not ideal as it was closer to the WiFi frequency and hence there were technical difficulties in its roll-out. "Only after two years were we provided the correct spectrum," he told the newspaper.

The fines have already been collected, based on bank guarantees offered when the licenses were originally granted.

Packet One Networks was the sole operator not fined. Indeed, the firm had its license expanded recently after it met coverage requirements.

Green Packet, YTL e-Solutions and Asiaspace are licensed to offer WiMAX services on the main peninsula, while REDtone's area of operation is in the East Malaysian states of Sabah and Sarawak.

On the web: The Star

Posted to the site on 29th October 2009