Malaysian Communications and Multimedia Commission (MCMS) fined three of the country’s four WiMax licensees a total of RM3.8 million for failing to rolled out required network coverage.

P1 WiMax one of WiMax licensees have rolled out several WiMax packages for consumers in the country.

P1 WiMax one of WiMax licensees have rolled out several WiMax packages for consumers in the country. (Photo: LowYat.Net)

YTL E-Solutions, was handed a fine of RM1.9 million as the only licensee that has yet to roll out commercial services. Asiaspace was fined 1.7 million ringgit while REDtone International escaped with a lower 210,000 ringgit (US$61,363) penalty.

YTL E-Solutions, part of Malaysian conglomerate YTL Group, and REDtone have appealed against the fines meted out by MCMC. In a statement Thursday, YTL-E said its WiMax-subsidiary Y-MAX Networks (YMN) was awaiting a response from the MCMC.

The operator said it failed to meet the requirement due to a change in its business plan, deciding to build a nationwide network instead of a piecemeal rollout. This revised deployment would result in YMN exceeding the targeted coverage stated by the MCMC “by next year”, the company said.

According local media reports YTL had planned to invest up to 2.5 billion ringgit (US$731 million) over the next five years for its WiMax rollout, while AsiaSpace was looking to raise 300 million ringgit (US$87.7 million) after investing close to 100 million ringgit (US$29.2 million) to date. REDtone had planned to raise 40 million ringgit (US$11.7 million).

P1 said it has invested 300 million ringgit (US$87.7 million) and plans to invest another 1 billion ringgit (US$292.2 million) over the next five years.

Its relative success in the market has seen P1 being given greater leeway by the MCMC, which earlier this month gave the go-ahead for the company to expand its services into East Malaysia–previously REDtone’s exclusive designated operating area.

P1, YTL E-Solutions and Asiaspace’s area of operation was limited to Peninsular Malaysia, while REDtone’s was limited to the East Malaysian states of Sabah and Sarawak.