MCMC to act against contractors in 4G network expansion initiative

PARLIAMENT | The Malaysian Communications and Multimedia Commission (MCMC) is assessing punitive actions to be taken against contractors who have failed to complete the construction of telecommunication towers under the National Digital Network (Jendela) initiative.

Announced in 2020 during the pandemic, Jendela is an initiative to speed up fiberisation and expedite the expansion and improvement of existing 4G networks.

Specifically, Communications Minister Fahmi Fadzil revealed that YTL Communications was allocated 51 out of 1,661 towers planned under the Jendela initiative, but none were in operation as of Oct 31.

“YTL received 51 towers, and out of the 51, not a single one is operating. That means YTL ranks the lowest (among other service providers).

“I am sorry I have to say this. Out of 51 towers, none have been fully completed.

“So I have asked MCMC to examine all the delayed towers and stern actions will be taken against contractors (responsible) either in Phase 1 or Phase 2,” Fahmi said in response to Iskandar Dzulkarnain Abdul Khalid (PN-Kuala Kangsar) during Question Time in the Dewan Rakyat.

He said penalties that can be imposed for failure to complete the construction of the towers include liquidated damages, performance bond and rejection of claims, as well as other actions provided under the Communications and Multimedia Act 1998.

“The MCMC is in the process of gathering information and evidence of non-compliance to allow actions to be taken against contractors that failed to complete the towers in the stipulated amount of time,” he stressed.

Of the overall 1,661 telecommunication towers, Fahmi said 1,385 have been completed and handed over to YTL, CelcomDigi, Maxis, U Mobile and Redtone, and of the figure, only 808 are in operation.

The remaining 577 are still under construction or yet to start operations.

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