Oh yes, it’s another review! — The Malaysian Insider
This is not the first time that the stench of opaque decision-making for Corporate Malaysia has come back to bite the government.
Last May, tycoon Tan Sri Vincent Tan told Bursa Malaysia that his Ascots Sports Sdn Bhd had received a letter from the government dated January 13, 2010 that his sports betting licence had been re-issued.
Suffice to say that after a major uproar and silence from the government, the licence was rescinded.
The 700MHz saga shares a similar tale with the sports betting saga where decisions are made behind closed doors and procedures do not seem to be followed.
In the case of YTL Communications Sdn Bhd (YTL Comms), their belief that they have been allocated apparatus assignment in the 700MHz spectrum for their hybrid television service is now being tested by the Malaysian Communication and Multimedia Commission’s (MCMC) vague statement on the matter.
MCMC has denied that YTL Comms can operate its television service on the 700MHz band, saying “MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.”
Yet, in the same statement issued late on Sunday, MCMC said it was examining a YTL business plan for digital TV, which coincidentally is within the 700MHz spectrum under the National Spectrum Plan.
Just two weeks ago, MCMC’s chief planning and development officer Toh Swee Hoe told The Edge weekly that YTL Comms will get an apparatus assignment (AA) to operate in the 700MHz.
“They will have a 12-month period to start once we give them the AA,” said Toh, who emphasised the spectrum itself will not be given to YTL Comms.
This fits in well with YTL Comms’ plans to offer a “hybrid television” service with its US-based partner Sezmi Corporation, which offers digital television packages ranging from US$4.99 (RM15.50) to US$19.99 in California.
So, MCMC wasn’t wrong to say that it did not assign the spectrum to YTL Comms but other telcos are in uproar that the AA has been given to the upstart provider that took more than two years to get its WIMAX service to the market.
They didn’t even know that the AA for the 700MHz was available until The Edge article appeared. According to MCMC procedures, there must be a Request for Comments (RFC) before a Request for Proposals (RFP) is issued for anything from collaboration with universities to spectrum assignment.
“Before the question of whether YTL Comms has received a letter of intent or award, the first question that should be asked is whether 700MHz is for broadcasting or for broadband,” a telco industry executive told The Malaysian Insider, referring to fears that YTL Comms could use it for its newly-launched Yes 4G WIMAX service.
YTL Comms has denied that it wants to use that spectrum for its broadband service, pointing out that it already has the 2.3GHz spectrum and a 20MHz block within the 2.5/2.6GHz spectrum which MCMC recently allocated.
That itself appears to be a bone of contention as spectrum is highly coveted and prized among telcos. MCMC rules mandate that it can conduct auctions, beauty contests or seek applications for spectrum AAs. But it didn’t for the 700MHz and the 2.5/2.6GHz bands.
Or did it and nobody knew about it? Just like the sports betting licence. Nobody knew it was available until Ascot Sports said it had been reissued with one. And now it’s YTL Comms’ turn to feel the heat, from the public and rivals who fear cronyism has returned to haunt the country.
Officials in the Najib administration must account for such shoddy and shady decision-making. In the era of People First. Performance Now, officials have shown up short of the ideal that the prime minister stated when he took office on April 3, 2009.
Two tycoons have seen their licences and permits being reviewed when exposed. There will be more unless there is transparency in such lucrative businesses. The established telcos, who have all enjoyed such business practices in the past, are now demanding for higher standards. They won’t tolerate anything less in order to protect their business.
Neither will the people of Malaysia.
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