‘Tower Without A Pan’ Case Resolved, With RM1 Billion Joint CAPEX: Fahmi Tells Parliament

The Government has finally found a solution for case of ‘tower without a pan’ (or the missing 4G towers with Internet services) that has long been raised in Sarawak.

“The Malaysian Communications and Multimedia Commission (MCMC) has developed the SMART600 project which involves the construction and operation of the 600 telecommunications towers by a company owned by the Sarawak state government known as the tower operator with a capital expenditure of over RM1 billion, fully funded by the state government of Sarawak,” said Communications and Digital Minister Fahmi Fadzil in the Dewan Rakyat today (Nov 2).

However, the location of these SMART600 towers which are in the hinterland where the commercial returns for mobile service providers is so limited that it causes issues towards reaching a commercial agreement with the operators of the tower in respect of 4G services.

This is the cause for ‘towers without pan’ in Sarawak, Fahmi said in reply to a question raised by Chiew Choon Man [Miri] in the august house today.

To ensure that 4G services can be provided to local communities in those areas as soon as possible as well as taking into account the investments made by the state government, Sarawak, basically, the Federal Government and the service providers namely CelcomDigi, Maxis, U Mobile, TM Tech and YTL Communications have agreed to share the cost which must be paid to the operator of the towers.

“This funding from the Federal Government and the mobile service providers involves a sum of about RM207 million (RM119.4 million by the Government through MCMC and the Ministry of Finance, and RM87.3 million by mobile service providers for the relevant towers for a period of three years from 2024 to 2026.

“After that period, the mobile service providers will bear the full cost to the tower operator,” the minister added.

He said, a total of 3,000 inland and rural areas have been identified and will surely benefit he people there under this initiative to end the issue of ‘towers without pans’ that has been plaguing Sarawak since 2019.

The operation of these towers for the provision of 4G services is phased and will begin as early as January 2024.

Apart from that, 4G services on the SMART600 towers will be provided under a partnership model by CelcomDigi, Maxis, U Mobile, TM Tech and YTL Communications) to provide more choice to users.

The implementation of this initiative is also part of the JENDELA plan which aims to provide 100% Internet coverage in populated areas by the end of 2025, in addition to being a catalyst and open opportunities for digital economic activities  for those living in interior of Sarawak.

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