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Thursday, July 18, 2013

YES could burden taxpayers, and Zaril says that’s a no-no

Taxpayers could be funding YTL's 4G infrastructure expansion across the country through the company's deal with the Education Ministry to provide high-speed broadband services to all schools, said Bukit Bendera MP Zairil Khir Johari (pic) today.
He said the erection of telecommunications towers, which is part of the contract, has raised a few questions.
According to a report by fz.com on May 10, 2013, YTL director Yeoh Seok Hong is quoted as saying that the "towers going up at the schools won't just provide wireless internet connectivity at the school, but in surrounding areas too".
“In other words, YTL will effectively be able to use these towers to offer  YES 4G broadband services to residents in the surrounding community,” Zairil said in a statement.
If this was true, Zairil said, the Education Ministry had to explain if the cost of YTL’s YES 4G network commercial expansion was being borne by taxpayers.
“Why is YTL allowed to generate additional profits from infrastructure installed on school premises and meant for educational use?," he said.
"Will YTL be charged a fee for using school land for commercial purposes?”
The DAP lawmaker said that in a parliamentary reply he received from the ministry.
The RM663 million 1BestariNet programme involves the installation of high-speed broadband based on 4G technology, with a minimum speed of 4Mbps to 20Mbps to 9,889 schools throughout the country.
Up until June 5, 2013, 7,139 schools have already been equipped with 1BestariNet. The two and a half-year project, which began on January 2012, has already seen RM463 million disbursed to the company.
A total of 1,503 telecommunications towers have also been erected in and around school compounds and 53 more of the 1BestariNet Receiver Integrated System (1BRIS) towers are still under construction.
YTL Corporation Bhd and its subsidiaries have been awarded the contract to carry out the ministry's ICT projects, including the Virtual Learning Environment (VLE) e-learning tool and Chromebooks under the 1 Student 1 Device programme.
The virtual learning project will cost RM513 million and the Chromebooks, RM139.6 million for an initial order of 116,399 units at a cost of RM1,200 per unit.
Zairil had earlier questioned the government's decision to award the contract for the programmes to YTL Corporation Bhd on its cost effectiveness.
He wanted to know why YTL, which was only an internet service provider, was awarded the contract which is expected to cost the education ministry so much.
He pointed out that the price of Chromebooks as supplied by YTL appears to be higher than the prevailing market rate, despite the large order.
He also warned that the e-learning tool that uses a RM1,200 lap top per student could be a virtual white elephant because Malaysian teachers and schools might not be prepared to use it.

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