The Penang government inked a RM8.5 million deal today with Redtone to provide 750 extra hotspots for its residents to enjoy free WiFi.

Chief Minister Lim Guan Eng, who announced the deal today, described the deal as a ‘gift' from the state government to Penangites, although the election promise was made in 2008, when Pakatan Rakyat took over the state.

penang freewifi contract signing ceremony 260311 lim guan eng Lim ( right) said this benefit could not be found anywhere in the country, accept in Penang, as no other licensed Internet service provider except for Redtone was willing to provide the service free for the initial 750 hotspots.

"I feel sad that we are still being criticised for this (effort); last time they (previous state government) did not do it, and we did not criticise them," he said at a press conference at Komtar today.

"We do it (provide free WiFi) and we still get criticised, I do not know what else we have to do," he added.

However, questions still arise as to why Redtone was offered this spectacular deal, and why there had been no open tender for the project.

When asked, Lim explained that out of 12 licensed Internet service providers, Redtone was the only company willing to provide 750 hotspot, and an additional 750 at a good price.

He said neither the request nor service was normal and said it was not viable to open tender when no other company was willing to accede to the state government's request for free WiFi.

"We did our survey and found out that no other company was willing to do this at the price we offered," he added.

Meanwhile, Lim reiterated that the service would include Barisan Nasional constituencies aside from Pakatan Rakyat's.

All 40 state constituencies in Penang shall be provided with at least 10 free WiFi hotspots, he said.

Misunderstanding lands MP in hot soup

"This validates what I have said in the past that even BN constituencies would be provided with the service," he quipped.

Recently, Lim's chief of staff, Jeff Ooi created waves when he said that BN constituencies would not be provided with the service, for lack of resources.

penang freewifi contract signing ceremony 260311 jeff ooi Ooi, ( right ) who is Penang Development Telecommunications Sdn Bhd (PDCT) chairperson and MP for Jelutong, has since denied that his comments were serious.

The agreement with Redtone and the state through PDCT is for five years at a cost of RM8.490 million, after that both companies have the option of continuing the services annually for RM900,000.

Maintenance of the existing 750 sites will be for free. The additional sites are expected to be implemented by April.

Redtone is said to be currently focusing on customer service and will advertise its hotline to gather information and complaints about its services to ensure the best possible speed and coverage.