Saifuddin aborts directive to grant 5G bands without tender

Communications and Multimedia Minister Saifuddin Abdullah has cancelled the order to award communication bands to several companies without an open tender.

"Eighteen instruments including the directive and determination for the use of the band spectrum of frequency 700MHz, 900MHz and 2600 MHz were presented to me.

"Based on technical and legal issues as well as the need for transparency, I have ordered the MCMC chairperson to immediately cancel the directive and determination and to review the instruments," Saifuddin (above) said in a statement.

The original directive and determination dated May 15 that granted the 700MHz band to five telecommunication companies without tender was signed by Saifuddin.

The five were Telekom Malaysia, Celcom Axiata, Maxis, Digi and Altel Communications.

Altel’s award was particularly of interest as it is a relatively unknown company owned by politically-connected tycoon Syed Mokhtar al-Bukhary.

The contracts were part of the ministry’s National Fiberisation and Connectivity Plan (NFCP) which aims to connect the country to affordable 5G internet. 

Saifuddin's move had sparked criticism from opposition MP Fahmi Fadzil over the lack of transparency. 

Meanwhile, former communications and multimedia minister Gobind Singh Deo said that an open tender for the lucrative contract was supposed to have taken place in the first quarter of the year.

The NFCP was launched during his time in office.

In a Facebook post, Gobind said an open tender process for the contract was “specifically stated” in the Malaysian Communications and Multimedia Commission’s (MCMC) public inquiry report on the project.

“Amongst others, it (the report) specifically stated that the 700MHz band would be assigned through a tender process.

“For the first stage, MCMC was to make available 2x30MHz of the 700Mhz band. The tender was originally planned to be issued by the MCMC in the first quarter of 2020,” he said.

Gobind added that an open tender would have been able to determine which contender had the best business plan, track record and cost-saving proposal.

“These steps were meant to ensure that Malaysians would be able to benefit from an improved digital infrastructure coverage, high-quality connectivity while ensuring the cost of services remained competitive,” he said.  - Mkini