Unperturbed by netizens' criticism of the RM500 price cap on the smartphone rebate, the Malaysian Communications and Multimedia Commission (MCMC) explained that it had been designed to help low-income youths unable to afford a basic 3G smartphone.

NONE "The idea is to spread the incentive across to those who do not yet use smartphones. We really want to help those who cannot afford to change phones to upgrade from their old 2G phones to a basic 3G smartphone, " said MCMC chairperson Mohamed Sharil Tarmizi (right) in a statement issued last night.

"Those who can afford phones priced above RM500 are really not in the intended category or target market. Some of those phones can reach prices of over RM2,500 without contract.

"A RM200 rebate does not even make a dent but if the phone is priced at RM500, a RM200 rebate goes a long way.

"Again, the target is the lower income group and youths," he said.

He was refuting criticism that the RM500 price limit is insufficient to purchase a decent smartphone.

After yesterday's MCMC announcement on the smartphone rebate price cap rebate, a flurry of negative feedback was apparent among the online community.

Mohamed Sharil said that there are over 20 models of 3G enabled branded phones in the market, rebutting the condemnations by many parties after the RM500 price cap was placed for the rebate program.

Extending a helping hand

"With the rebate, they are expected to pay no more than RM300 to own a new 3G smartphone," he said, describing the program as an effort to help rural youths to benefit from the country's broadband facilities.

"The scheme is on a first- come- first served basis and will be for the first 1.5 million eligible youths who may claim their smartphones while stocks last," he said, adding the applications to purchase the smartphones can be made by registering at the MCMC's website from Jan 1, 2013.

NONE The MCMC chairperson also said that eligible youths are restricted to purchasing selected 3G smartphones from participating dealers and agents appointed by the service providers.

According to MCMC studies, Mohamed Sharil said that more than 90 percent of users go for the prepaid facility .

"Cellular phone companies don't provide smartphone incentives in this segment (prepaid plans); they only give mobile phone ‘incentives' for postpaid contracts," he pointed out.

Mohamed Sharil said that people can start looking out for logos of "Pakej Komunikasi Belia (Youth Communications Package)" which will displayed on banners and buntings at selected outlets.

"The participating cellular phone companies and mobile virtual network operator (MVNOs) will offer no less than five and perhaps up to 10 or 12 models under the initiative via their dealership outlets," he said, adding that youths can check the service providers' websites for the list of selected smartphones and dealership outlets.

Mohamed Sharil also encouraged small business owners from the ages of 18 till 65 to apply for the Get Malaysian Business Online's (GMBO) RM1000 grant provided by MCMC.

Breaking into sweat providing services

He said those who have registered at websites such as ‘.com.my' and ‘.my' and fulfill the rest of the criteria can obtain the sum.

"The money will be credited directly into the successful applicants' local bank accounts," he said, estimating 5000 eligible entrepreneurs to apply for the grant.

Mohamed Sharil said that as of Dec 26 the MCMC has picked 23 smartphones for the program and this would be updated in the service providers' websites..

He added that the brands, models and quantity of smartphones offered by the different service providers for the RM200 rebate would vary.

MCMC has currently identified the following brands for the scheme:

NONE

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