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YTL 'shocked' contract to provide free Internet service discontinued

KUALA LUMPUR: YTL Communications Sdn Bhd has expressed shock that its contract to provide free Internet service to some 10,000 schools was discontinued.

In a statement, YTL said it had, on several occasions, asked for clarifications from the Education Ministry on the matter.

This follows the ministry’s announcement on June 27 that Celcom Axiata Bhd, Telekom Malaysia Bhd and Maxis Broadband Sdn Bhd would take over as the Internet service providers (ISPs) for schools from July 1 to Dec 31.

According to YTL, it wrote a letter to Education Minister Dr Maszlee Malik on May 31 offering to continue providing the service.

“We provided a complete solution for the free Internet service and Frog Virtual Learning Environment (Frog VLE) temporarily until a tender is issued.

“However, we didn’t receive any reply and we were shocked by the ministry’s announcement.

“They broke their promise to hold open tenders and instead, they agreed to pay the service to the three companies hired,” the statement read.

YTL also expressed shock over a Facebook page called “Friends of Maszlee Malik” which wrote a list of seven reasons why the 1BestariNet project should end.

The company said the article contained false references and was malicious.

“We would like to stress that YTL Communications has fulfilled all of the service-level agreements (SLA) in the contract and we never received any complaints from the ministry.

“So, we hope the minister will deny this accusation and distance himself from the (Facebook) post which used his name, his image and the good name of his ministry.”

The statement further said that such “confusing reports” would tarnish the good name of YTL and Frog VLE which was introduced in schools in 2011.

“We feel disturbed by the incorrect statement made when we have in fact invested more than RM4 billion in building the infrastructure in schools,” it said.

Yesterday, the ministry’s chief secretary, Datuk Dr Mohd Gazali Abas listed five reasons why it had rejected YTL’s offer to extend the 1BestariNet free Internet service contract.

He said, the first reason pertained to a “hidden cost” following YTL’s refusal to pay electricity charges incurred by telecommunication towers that it installed in schools and government premises.

He said YTL had never paid for the charges since the commencement of 1BestariNet Phase 2 and it had resulted in the government having to fork out RM41.881 million to foot the bill for 2,715 towers.

Secondly, he said, the government could potentially lose commercial rental income of RM195.480 million within the first six months of YTL’s interim offer.

Thirdly, he said weaknesses in 1BestariNet Phase 2 project would recur. Fourthly, the company was unable to explore the latest and most suitable technology.

Fifthly, he said, the national digital education impact and direction studies had found that the quality of Internet connectivity provided was unsatisfactory.

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