Fahmi: Currently, we are considering imposing liquidated damages on the parties involved. MCMC is gathering information and evidence of non-compliance to enable further action. (The Edge filepix by Sam Fong)

KUALA LUMPUR (Nov 28): Communications Minister Fahmi Fadzil said on Thursday that the ministry would take stern action against those responsible for delays in the completion of tower construction under Phase 1 of the National Digital Network (Jendela).

Under the notification of approval, Fahmi said that the Malaysian Communications and Multimedia Commission (MCMC) could take strict action against contractors who fail to complete towers within the stipulated period.

Penalties may include liquidated damages, forfeiture of the performance bond, claim rejections, and legal action under the Communications and Multimedia Act 1998.

"Currently, we are considering imposing liquidated damages on the parties involved. MCMC is gathering information and evidence of non-compliance to enable further action," Fahmi told the Dewan Rakyat on Thursday, during the oral question-and-answer session.

Jendela is a RM21 billion initiative launched by the government in 2021, aimed at providing 100% internet coverage in populated areas by 2025.

As at end-October this year, 1,385 out of 1,661 towers have been completed under Phase 1 of Jendela, Fahmi said.

Of the 1,385 towers, only 808 are operational, while the remaining 577 are yet to be "on air", with 226 of them having exceeded the nine-month target period for operation.

In terms of telecommunications operators, CelcomDigi Bhd (KL:CDB) has 366 towers pending operation, Maxis Bhd (KL:MAXIS) has 96, U Mobile Sdn Bhd has 19, Redtone Digital Bhd (KL:REDTONE) has 45, and YTL Communications Sdn Bhd has 51.

Fahmi also noted that the national 4G coverage rate in populated areas has reached 98.38%, and directed MCMC to provide a temporary solution using Starlink, or microwave technology, while awaiting installation of the fiber-optic backhaul.