About the Cover · With its intricate design, the Wau Bulan (moon-kite) is a great work of art. It is the most attractive and the most popular kite of Malaysia. Legend has it that

About the Cover

With its intricate design, the Wau Bulan(moon-kite) is a greatworkof art. It is themost attractive and the most popular kiteof Malaysia. Legend has it that a youngprince, Dewa Muda, had first used the kite to determine the designated area to beconquered and to symbolize the reunification oftheSriVijayaEmpire.Today,theMalaysianCommunicationsandMultimediaCommissionimmortalizesthisspiritinreunifyingMalaysiansthroughprovisioningandimprovingaccesstocommunicationsfacilitiesandtechnologies.

For further information on Malaysian Communications and MultimediaCommission:

write to:Director,CorporateCommunicationsDepartmentMalaysianCommunicationsandMultimediaCommissionOffPersiaranMultimedia63000Cyberjaya,Selangor

Phone: +603 8688 8000 Fax: +603 8688 1000

e-mail: [email protected]

or visit our website:www.mcmc.gov.my

Concept,designandlayout:VersaAdsSdnBhd

UNIVERSAL SERVICE PROVISIONANNUAL REPORT 2006

CONTENTS

1) Chairman’sMessage 2

2) Overview 3

3) USPFund 4

4) USPProjects 11

5) OtherActivities 18

6) LookingAhead 23

7) StatementofAccounts 26

Appendices

2

TofurtherstrengthentheUSPprogramme,wehavealsoconductedareviewonexistingUSPRegulationstobe in linewithourobligationtoremaincommitted in implementingvariousotherprojectsoverthenextseveralyears.ThiswouldincludethedeploymentofhighspeedbroadbandtomeetthetargetsassetoutintheNationalBroadbandPlanandtheMyICMS886strategy. As of now, discussions to finalise the review exercise are ongoing and it is envisaged thattheAmendedRegulationswillbegazettedbytheQuarter22007.

I have great confidence in our ability to adapt and overcome significant challenges which lies aheadmoresowithaproventrackrecord,whichwillmeetthenation’sobjectiveinbridgingthedigitaldividebyensuringruralaccesstocommunicationservices.

Warmestregards,

Datuk Dr. Halim Bin Shafie

ItgivesmegreathonourtopresenttoyoutheMalaysianCommunicationsandMultimediaCommission(MCMC)UniversalServiceProvision(USP)Reportfor2006.

Theyear2006hasbeenaspecialyearforusbecauseitmarkedourachievementinrollingoutmultipleUSPprogrammesintheeffortofbridgingdigitaldividethroughoutthecountry.BesidesrollingoutUSPPhases1,2and3projectswithinthe89underserveddistricts,wehavealsoembarkedontherolloutofothernewprojectsundertheUSPprogrammewhichincludestheprovisionofInternetaccessservicetolibrariesandthecreationofUSPCommunicationsCentre.

CHAIRMAN’S MESSAGE

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3

The Universal Service Provision (USP)programme’s main objective is to providecollective and individual access to basictelephony and Internet services throughoutthecountry.Thisisbecausenetworkfacilitiesproviders,understandably, tend to focusoncommercially lucrative areas and this hascreatedagapbetweenthe“haves”inurbanareas, and the “have-nots” in rural areas.Oftenreferredtoas theDigitalDivide, thisimbalanceincommunicationsaccesscanhavesocial ramifications if not addressed at the nationallevel.Consequently, USP targets are divided intounderserved areas and underserved groups within the community. Theclassifications are defined as follows:i) Underserved area An area where the penetration rate forPublicSwitchedTelephoneNetwork(PSTN)subscribers in Malaysia is 20% below thenationalpenetrationrateoranylocalitywhere,in the opinion of the MCMC, applicationsservices are not sufficiently available to the communityatlarge.The MCMC also takes into account thenumberofhouseholdsinanarea,thedemandorwaiterslist,andexistinginstalledcapacitiesofthenetworkinfrastructureforoptimisationofnetworkresources.

ii) Underserved group within the communityA group of people linked by similarcharacteristics from a socio-cultural oreconomicperspective,withina servedarea,whodonothavecollectiveand/orindividualaccess.

Hence, the USP programme is a tool forbridging the Digital Divide by acting as amechanism for channelling private sectorinvestment into unprofitable rural areas. The key tenethere isoneof“nogain,no loss.”Thismeansthatadesignatedserviceproviderincurs no loss, or makes a profit, when implementing this programme. The serviceproviderclaimsonlyforexpensesincurred,atcost,andtheMCMCreimbursesthembasedonadetailedclaimstemplate.

OVERVIEW

4 USP FUND USP FUND

BACKGROUND

The Universal Service Provision Fund (USPFund) was established under the provisionof Section 204 of the Communicationsand Multimedia Act (CMA) 1998. TheCommunications & Multimedia (UniversalServiceProvision)Regulations2002(theUSPRegulations)stipulatethatcontributionsfromlicensees shall be based on three factors:

i) Thelistofdesignatedservices;ii) Weightagefactors;andiii) Sixpercentofweightednetrevenue.

AsperRegulation27oftheUSPRegulations,all licensees except Content ApplicationsService Provider (CASP) licence holders,whoseweightednetrevenuederivedfromthedesignatedservicesexceedsRM500,000.00inacalendaryear(minimumrevenuethreshold)shallcontribute6%ofitsweightednetrevenuetotheUSPFund.

In the Amended USP Regulations 2003,the minimum revenue threshold has beenincreased to RM2 million effective from 1January2004.

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5USP FUND

Localcall

Nationalcall

Rentalonexchangelines(residentialandbusiness)

Operatorassistedcall

Directoryassistanceservice

Connectionservice

Reconnectionservice

Internetaccesscommunicationscharge

Internetaccesscharge

Audiotexthostingservice

Internationalcall

Callterminationserviceprovidedtoforeignnetworkfacilitiesprovider,foreignnetworkservicesproviderand/orforeignapplicationsservicesprovider

Freephoneservice

ISDN

Cellularmobileservice

Internationalroamingservice

IPtelephony

Leasedlines

Suchotheractivitiessubjecttoanindividualorclasslicense

0

1

0

1

0

0

0

0

0

1

1

1

1

1

0.5

0.5

1

1

0

Designated Services

USPRegulations

2002

AmendedUSP

Regulations2003

Regulated under the Communications and Multimedia (Rates) Rules 2002

0

0

0

0

0

0

0

0

0

0

1

1

1

1

1

1

1

1

1

Not regulated under the Communications and Multimedia (Rates) Rules 2002

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Table on Weightage Factor and Designated Services is illustrated as per below:

6 USP FUND

Thecontributioniscalculatedviathesubmissionofreturnofnetrevenuefromdesignatedservices fromall licensees (exceptCASP licenceholders).This is an annualobligation andlicensees are required to submit the return and their audited financial statements of the previous calendar year latestby30Aprilof eachyear.The formatof the return is statedin theUSPRegulations.Upon the derivationof theweighted net revenue, the formulaofcontribution is:

Contribution Amount = Weighted Net Revenue * Contribution rate

Currently, the contribution rate has been fixed at6%ofthetotalweightednetrevenue.

USP FUND COMMITTEE

Under Section 15 (1) of the MalaysianCommunicationsandMultimediaCommissionAct 1998 (MCMCA) 1998, the MCMCmay establish any committee it considersnecessary or expedient to assist it in theperformance of its functions under thecommunicationsandmultimedialaws.Hence,theUSPFundCommitteewasformedunderthe Commission Determination on USP(Determination No. 2 of 2001), to manageanddisbursemoniesintheUSPFund.

The committee members are:

Chairman : Datuk Dr. Halim ShafieMembers : Dato’ Dr. Gan Khuan Poh DatukC.Rajandram

BANKERS

The USP Fund bankers are:

1.CIMBBank,PWTCBranch;2.RHBBank,PutrajayaBranch;3.EONBank,PuchongBranch;and4.MaybankFinance,PuchongBranch.

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FUND COLLECTION

A total ofRM795.6million is estimated to be collected for theUSP Fund in 2006,whichpresentsanincrementof15%fromcontributioncollectedin2005.ThisisbasedontheReturnofNetRevenuedocumentsubmittedbylicenseesfortherevenueearnedinthecalendaryear2005. The first payment is due in December 2006 and second payment in June 2007.

The main contributors to the USP Fund for 2006 are:

MaxisCommunicationsBerhad(inclusiveofMalaysianMobileServicesin2005)Celcom(Malaysia)BerhadDiGi Telecommunications Sdn BhdTelekomMalaysiaBerhadCelcomMobileSdnBhd(formerlyknownasTMCellularSdnBhd)TMPayphoneSdnBhd(formerlyknownasCitifonSdnBhd)TTdotComSdnBhdFiberailSdnBhdHeitechPaduBerhadTIMEReachSdnBhdRedtoneTelecommunicationsSdnBhdNasionComSdnBhdDreamChorusSdnBhdVADSBerhad(formerlyknownasVADSSdnBhd)SacofaSdnBhdGen-X Technology Sdn BhdExtivaCommunicationSdnBhdScopeTelSdnBhdCommunications&SatelliteServicesSdnBhdXintel Sdn BhdFSBMNetMediaSdnBhdExticomSdnBhdNextTelecommunicationsSdnBhdTouchMatrixSdnBhdD’HarmoniTelcoInfraSdnBhdYomobile Sdn Bhd (formerly known Rampai Kinta Sdn Bhd)Xpedite Systems Incorporated (Malaysia) Sdn BhdSTRCommunicationSdnBhd

12345678910111213141516171819202122232425262728

Licensee

8 USP FUND

ADDITIONAL CONTRIBUTION FROM PREVIOUS YEARS NOTIFIED IN 2006

The MCMC identified several licensees liable for contribution upon verification of the additional andamendedsubmissionsoftheRevenueStatements.Totaladditionalamountestimatedtobe collected from these licensees in 2006 is RM5,485,145.87. They are:

RedtoneTelecommunicationsSdnBhd

NasionComSdnBhd

Xintel Sdn Bhd

ExtivaCommunicationsSdnBhd

Go Voice Sdn Bhd

MobileTouchetekSdnBhd

EcenturySdnBhd


2003

2005

2005

2005

2005

2005

2005

2005

Licensee Year of Contribution

1

2

3

4

5

6

7

8

TelekomMalaysiaBerhad14.24%

DiGi Telecommunications SdnBhd16.22%

Celcom(Malaysia)Berhad17.43%

MaxisCommunicationsBerhad38.54%

CelcomMobileSdnBhd9.87%

Others1.80%

TMPayphoneSdnBhd0.94%

TTdotComSdnBhd0.63%

FiberailSdnBhd0.34%

HeltechPaduBerhad0.33%

TIMEReachSdnBhd0.31%

RedtoneTelecommunicationsSdnBhd0.28%

NasionComSdnBhd0.18%

ContributorsbelowRM1M0.17%

The breakdown of contribution is as per chart below:

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DISBURSEMENT

Regulation12oftheUSPRegulationsallowsforthedisbursementofadvancepaymenttowardsthecapitalcostofimplementationoftheuniversalserviceprovision.

DesignatedserviceprovidersarerequiredbytheMCMCtoprovidesupportingdocumentssuchaspurchaseordersandinvoiceswhenapplyingforadvances.ApplicationsforadvanceswouldonlybeapprovedifalltherequireddocumentsareinorderandincompliancewiththeapprovedUSPPlans.

In2006,theMCMCmadepaidadvancepaymentamountedtoRM10milliontothreedesignatedservice providers, as follows:

Category of Licence Amount (RM)

TTdotComSdnBhd

eBTechnologiesBerhad

TelekomMalaysiaBerhad

Total

1,264,625.16

630,247.00

8,144,580.89

10,039,453.05

1

2

3

DEFAULTERS

SeverallicenseeswhoarerequiredtocontributetotheUSPFundhavefailedtodoso.Thelist of accumulated defaulters as of 31 December 2006 by classification of licence is shown as follows:

Category of Licence Amount (RM)

HoldersofNSP,NFPandASP

HoldersofASP

Total

1,966,258.73

5,335,433.23

7,301,691.96

1

2

FirstInvestigationReports(FIR)toinitiateenforcementactiononthesedefaulterswillbeissuedbyMCMCintheQuarter22007.

10 USP FUND

SUMMARY

Asof31December2006,thebalanceoftheUSPFundstoodatRM1.987billion.ThisamountisinclusiveofthecommittedcostofRM497millionyettobepaidpendingtheclaimsfromthedesignatedserviceprovidersforrollingouttheUSPprojects.PaymentwillbemadeupontheMCMCreceivingandverifyingtheclaimsrequestsfromtheserviceproviders.

Intermsoffuturespending,severalprojectsamountingtoRM1.3billionhavebeenlinedupforimplementationin2007.OntopofUSPPhase2projectsfortheremaining61districts,newprojects likeStates’broadbandplans andUSP rolloutbymajor contributorswill alsobe implemented.The implementationof thesenewprojects is subject to theongoingUSPRegulationsReviewexercise,dueforcompletionintheQuarter22007.

As a summary, the table below shows the contribution (as per the notifications issued) and disbursement from 2003 to 2006:

2003

2004

2005

2006

Total

404,181,253

515,135,476

697,298,212

800,841,126

2,417,456,067

10,638,967

23,591,977

44,121,315

22,855,044

101,207,303

Notification Year Contribution (RM) Expenditure (RM)

USP PHASE 1

In2006,MCMCmanagedtocoordinatetherolloutofUSPPhase1projectsinaccordanceto the designation of the 89 USP districtsthroughoutMalaysia.Therolloutisaninitiativeto meet the main objective of the USPprogrammeoutlinedundertheCMAwhichistheprovisionofcollectiveandindividualaccesstobasictelephonyinunderservedareas.

As of 31 December 2006, the rollout for78 districts was completed whereas rolloutfortheremaining11districtsisexpectedtocompletebytheQuarter12007.

Withthecompletioninthe78districts,atotalof39,960individuallinesand2,414payphonesarenowavailabletopeoplelivingintheruralareas. Details of the rollout are shown inAppendix1.

Responses from communit ies in theunderserved areas to the fixed lines services provided by the universal service providersarevaried.Thereareareaswheretherewaspent-updemandandthistranslatedintohighfixed line take-ups but in some other areas, thedemandwasminimalwhichresultedwiththelowtake-uprates.

Asof31December2006, a totalof11,459individuallineshavebeensubscribed,presentingtheoveralltake-uprateof29%.Ifcomparedtothetake-upraterecordedin2005,thereis

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aslightincreaseof4%andthiscouldbedueto the marketing and awareness campaignscarried out by MCMC and USP serviceprovidersin2006.

12 USP PROJECTS

AVERAGE TAKE-UP RATE

NasionCom 59.8%

eB 4.7%

TM 25%

Maxis 30%

Celcom 59%

DiGi 6.8%

TTdotCom 42.7%

59.8%

4.7%

25%

30%

59%

6.8%

42.7%

USP PHASE 2

LookingattheneedstoexpandtheUSPservicestootherareasintheunderserveddistricts,theMCMCembarkedwiththesecondphaseofUSPproject(USPPhase2).ItsimplementationwasfocusedonareasnotcoveredunderthepreviousrolloutandtheapproachwassimilartothePhase1projectwithsomeimprovementbeingmadetocertainaspectsoftheprojectsuchastheemphasistoprovidebroadbandserviceinareaswheretherewasdemandbytheconsumers.InvitationforproposalwasissuedouttoalldesignatedserviceprovidersintheQuarter32006.

Atotalof87proposalswerereceivedfromtheserviceprovidersandtheMCMCcarriedoutthe evaluation primarily on its technical and financial aspects. In addition to the meetings held with the service providers to validate the proposals, the MCMC made several verification site visits with the service providers and local district offices to determine the viability of the service areaspurportedintheproposals.

Apartfrommarketingandawarenesscampaigns,extraeffortsinimprovingthequalityofUSPservicesofferedtotheusersandthecreationofmoreattractivesubscriberpackagestailoredtothelowincomelevelstoboostthetake-uponindividuallinesprovidedmustbetakenintoconsiderationorder.

The graph below shows the individual line take-up rate for each universal service provider:

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In June and December 2006, the MCMCapproved28proposalssubmittedbyTelekomMalaysia Berhad (TM). Implementation forfour districts namely Jeli, Besut, Lipis and Gua Musang isexpectedtocomplete inQuarter12007whileimplementationforanother24districtsinQuarter32007.Uponcompletion,atotalof27,152individualand665collectivelineswillbemadeavailableforthepeoplewithinthesaiddistricts.DetailsoftheimplementationareshowninAppendix2.

The implementation in the remaining 58districts will begin in the Quarter 3 2007pending submission of the revised USPplans and the outcome of the performanceassessmentontheserviceprovidersforthePhase1rollouttargetedtobecarriedoutintheQuarter22007.

USP PHASE 3

Similarly,therolloutofPhase3projectbeganin two districts namely Kinabatangan, Sabah and Gua Musang, Kelantan. In Kinabatangan, ademand for individual lineswashighsincethePhase1implementationwasconcentratedin providing the payphones under the pilotproject. As for Gua Musang, the rollout of Phase 3wasessentialbecausetheimplementationof

Phase2wasputonholdduetothescrappydevelopment of the areas listed inside theproposal.

ItisexpectedthattheimplementationinthesetwodistrictswillcompleteintheQuarter32007.

INTERNET ACCESS TO LIBRARIES

Internet access service was first introduced in 2005 in the pilot USP sites of Julau inSarawak and Kinabatangan in Sabah. In 2006, theMCMCbroadenedtherolloutofInternetservice by introducing a new project undertheUSPprogrammetoincludetheprovisionofcollectiveInternetaccessservicetolibrarieslocatedintheunderservedareas.

The primary purpose of the project isto provide Internet access facilities to alllibraries in rural areas which will benefit the communitiessurroundingthemandfacilitatethe birth of knowledge-based society in the field of communications, particularly informationtechnology(IT)inlinewithplansandtargetsidentified under the National Broadband Plan andtheMyICMS886Strategy.

The libraries will be equipped with thelatest IT hardware and high-speed Internetconnectivitytoenabletheruralcommunitiesgain exposure to the latest technology inInternetcommunications.Inaddition,otherIT-related activities such as training andpromotional activities will be conducted attheselibrariestoencouragethelocalstomakefulluseofthefacilitiesintheefforttoimprovetheirITadoptionandultimatelyenhancetheireconomicandsocialstatus.

Foreachlibrary,thedesignatedUSPproviderwill appoint a supervisor to manage and

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14 USP PROJECTS

maintaintheequipment,providetrainingandpromote the facilities to the people livingwithinthecommunity.

TheselectionoflibrariesforthisprojectwillbebasedonfeedbackfromtheNationalLibraryofMalaysiaandtheStateLibraryOrganisations.To avoid duplication, coordination wascarried out with the Ministry of Energy,WaterandCommunications(MEWC)astheministry carries out similar projects underitsgovernment-fundedUSPprogramme.Theconcept plan for the implementation wasdevelopedbyMCMCinAugust2006.

Prior to the submissions of draft plans, the MCMC made verification site visits on 4-9 September 2006toascertainthesuitabilityoftheproposedlibrariesandtoassistserviceproviders inpreparing the plan. Officers from State Library Organisations, USP service providers, Public WorksDepartment(PWD)appointedbytheMCMCasconsultanttomonitortheproject,werepresentduringthevisits.

Atotalof78librarieslocatedwithinthe89USPdistrictswereselectedforimplementation.ThedraftUSPplansforthelibrariesweresubmittedtoMCMCbytherespectivedesignatedUSPserviceproviderson30September2006.

Afterfurtherevaluationitwasfoundthatplansfor44librariessubmittedbyTMandMaxisMobileSdnBhd(Maxis)wereinorderandacceptableforimplementationinaccordancewithMCMC’sUSPobjectives.DetailsoftheimplementationarestipulatedinAppendix3.

TheprojectisexpectedtocompleteinJune2007.

USP COMMUNICATIONS CENTRE

In addition to library project, the MCMC has embarked on the establishment of USPCommunicationsCentre(UCC)aspartofitsbroadbandrolloutplanin2006.SimilartotheprovisionofInternetaccesstolibraries,theUCCwillbeequippedwiththelatestIThardwareand broadband connectivity with greater bandwidth capacity as target users for UCC areexpectedtobehigher.

TheUCCwillbemanagedbytwosupervisorswhowillbegiventheresponsibilitytoconductvariousIT-relatedactivitiessuchastrainings,seminarsandworkshopsforthelocalcommunity.For sustainability, the operations of the UCC will adopt the entrepreneurship concept in

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whichthesupervisorsareencouragedtoearnadditionalincomebyconductinganyIT-relatedsidebusinessintheUCC.

The implementationofUCC shall be basedonasetofcriteriaandtheMCMCwillneedto work closely with state governments inidentifyingsuitablepremisesforUCC.InJuly2006, the MCMC has drawn up a guidelinetogether with the implementation conceptthatwouldassist stategovernments identifysuitablesitesforUCC,andamongthecriteriaare:

• The site proposed shall be located at a commonpublic location,wherethereisa good concentration of people, easily accessible and active community, perhaps withinatownorbusinessarea;• There shall be no other rural Internet programme (PID, MID, Kedai.Kom, etc) or commercial cybercafé within 5 km from theproposedsite;• Thepremiseshallbeapermanentbuilding (preferably concrete structure), clean and safe with all the basic amenities alreadyavailable;• The recommended size is about 1,200 squarefeettoenabletheprovisioningof10to 20 computers (minimum size should be 600squarefeetotherwisetoofewPCscanbe installedinthepremise);and• The premise is made available for the UCC for a minimum of five years.

Tothisend,stategovernmentsviatheirlocaldistrict offices have proposed various potential premises throughout the 89 underservedareas. The MCMC has made site verification visits in26districts in2006andexpect therolloutofUCCwithinthesedistrictswillbeginintheQuarter22007.

PROJECT MONITORING

The MCMC conducts project monitoringexercise to monitor the rollout progressin all USP districts to ensure projectsare implemented in timely manner and inaccordancetotheapprovedUSPplans.

Monitoringoftheprojectwillincluderegularvisitstotheprojectsitesandprogressmeetingswiththedesignatedserviceprovidersandstategovernments.ThisisimportantasitenablesMCMCtoacquireusefulinformationpertainingto project rollout such as difficulties faced duringimplementation,feedbackfrompublicandlocalauthorities,andalsosuggestionsforfuturerollout.

Inthepast,theMCMC’sUSPdepartmentwasresponsibleinmonitoringtherolloutprogressastheowneroftheproject.Howeverin2006,theresponsibilitywashandedovertothesixMCMC’s regional offices for more effective monitoringoftheimplementation.Appendix4 shows the monitoring and other relatedactivities carried out by regional offices to supporttheUSPprogrammein2006.

16 USP PROJECTS

COMPLETION INSPECTION

UponcompletionofaUSPproject,aninspectionwillbemadetotheprojectsitetocheckandverifyonthestatusoftheinstallationandthequalityofprojectdeliveryinaccordancetotheapproveddraftplans.

In 2006, MCMC carried out Phase 1 completion inspection in eight districts, as follows:

Kuala Langat, Selangor

SabakBernam,Selangor

HuluSelangor,Selangor

Yan, Kedah

Baling, Kedah

Pendang, Kedah

HuluPerak,Perak

Bandar Baharu, Kedah

20-21Feb

22-24Feb

27-28Feb

6-7Mar

7-8Mar

8-9Mar

9-10Mar

10-11Mar

1

2

3

4

5

6

7

8

Districts Date

IMPACT OF USP PROGRAMME

There is little doubt that USP programme is beneficial to the communities living in the underservedareas.OnewaytogaugetheusefulnessandtheimpactoftheUSPprogrammeisbycomparingtheusageoftelephonebeforeandaftertheimplementationoftheprogramme.Basedon an impact study by UKM Pakarunding Sdn Bhd (UKMP), high percentage of users claimed theyhadusedpayphonespriortotheimplementationofUSPprogramme,suggestingthattheneedfortelephoneserviceexistseveninthemostremotepartsofthecountryregardlessofsocio-economicstatus.

ThestudydiscoveredthatbeforeUSPreachedthem,usershadtotravelbetweennineand50kilometrestogettothenearestvillagesortownstomaketelephonecalls.Otherthandistance,difficulty in obtaining transportation was cited as the main problem users faced before the implementationofUSPprogramme.Itisthereforeclearthatprovidingtelephoneservicehasgreatlyhelpedthecommunitiescarryouttheirdailyaffairs.ThestudyalsofoundthatmanyuserswhohadneverusedtelephonepriortoUSPimplementationarenowregularusersoftelephoneservice.

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ThepositiveimpactoftheUSPprogrammeisfurtherdemonstratedbythefrequencyofcallsmadebeforeandafterprogrammeimplementation.Comparedtoprevioususagepattern,theUKMP study reveals a marked increase in the proportion of users making calls post-programme implementationwherebyinsomecases,theincreaseismorethan100%.

Intermsofcallpurpose,mostusersusetheserviceforenhancingandstrengtheningfamilyandsocialrelationships.Thestudyrevealsthatthepatternofcallpurposebetweenincomingandoutgoingcallsissimilar,suggestingtheimportanceoftelephoneserviceinfosteringsuchsocialinteraction.Inthisregards,USPprogrammeshouldnotbeviewedasprovidingbutalsoencouraginggreaterutilizationofservicesprovided.

Thereisalsosomeindicationthattheservicehasbeenusefulforbusinessandeconomicactivitiesalthoughratherlimited.Forexample,someusersreportedthattheservicehasallowedthemtoenjoybetterpricingfortheiragriculturalproduceandinputs.

18 OTHER ACTIVITIES

USP REVIEW

Under the CMA, the MCMC is requiredto conduct a full review of its regulationsonce every three years. Therefore in 2006theMCMCconducted a reviewof theUSPRegulationstoensurethatitremainsrelevanttochangingneedsanddevelopments.

InJuly2006,theMCMCformedaUSPReviewCommitteewhosemaintaskwastoreview,improve and enhance the system for theprovision of universal service in Malaysia.TheCommitteeconducteddiscussionswithvariouspartiestoobtainviewsandfeedbackto improve the USP system, in particularthedeliveryofmuchneededservicestothepublic inunderservedareas.Thesefeedbackand views were later included in a PublicConsultation (PC) Paper published on 10August2006.Amongtheproposalshighlightedin thePCwere issues regarding the rolloutof broadband services in USP, the fundingof community-based and education-based

contentdevelopmentfortheUCCandlibrary,the provisioning of cellular access networkinfrastructure in underserved areas, andamendmenttotheexistingclaimstemplate.

Atotalof24licenseesrespondedtothePC.The MCMC took into account their viewswhichledtoseveralproposedamendmentstotheUSPRegulationsandpartofUSPpoliciesandoperationalproceduresfortheMCMC.

Discussions between MEWC and theCommittee are still on going to finalize the review exercise and to make amendmentstotheUSPregulationswherenecessary.ItisenvisagedthattheAmendedRegulationscanbegazettedintheQuarter22007.

ThelicenseesthatrespondedtothePCarelistedinAppendix5.

USP BRAINSTORMING SESSION

InApril2006,theMCMCorganizedatwo-dayUSPbrainstorming session to strategize theUSProlloutplanfor2006.

Theparticipantsforthesessionwereinvitedbasedontheirinvolvementandcontributionto the previous USP project comprisingof personnel in relevant departments inMEWC and PWD. Due to time constraint,representatives from USP service providersand states government agencies were notinvitedforthesession.

Asaresultofthesession,fourmajorprojectsdescribed under the USP Projects sectionof this Annual Report were identified forimplementation beginning from the secondhalfof2006.

OTHER ACTIVITIES

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USP INDUSTRY RETREAT

Following the brainstorming session, theMCMC organized a USP Industry Retreatthemed‘Ke Arah Jurang Digital Sifar’inMay2006inMelaka,attendedby132participantsfromthefederalandstategovernmentagencies,USPservice providers, State-backed Companies(SBC)andtheMCMC.

The main objective of the Retreat was tofurther discuss and obtain feedback on theUSP rollout plan to ensure the expectationofthecurrentneedsanddevelopmentsweremet.TheRetreatwouldenabletheMCMCtoupdatetheindustryonthecurrentstatusofUSPprogrammeaswellastocreatecommonunderstandingamongtheindustryplayersinordertoexpeditetheimplementationoftheplanthroughoutthenation.

DiscussionsduringtheRetreatwerealignedtoward finding the best approach forimplementationoftheplan.Amongthetopicsdiscussedweretherolloutissues,broadbandrollout,USPcontributionandclaim,theUSPRegulations,stategovernments’ involvementin USP programme and content applicationin relation to educational and governmentneeds.

SeveralproposalswereputforwardtoMCMCfor consideration. Awareness on the USPprogrammeamongtheindustrystakeholdersespeciallythestategovernmentagencieshasalso improved significantly after the session wherebyallpartiesweremoreawareoftheresponsibilities they need to undertake toensurethesuccessoftheprogramme.

IMPACT STUDY BY UKMP

In March 2006, the MCMC engaged UKMP to conduct a socio-economic impact study ontheUSPprogramme.Thegeneralobjectivesof the study were to provide an overviewassessment of the USP programme and togauge the impactof theprogrammeaswellasthelevelofsatisfactionwiththequalityofserviceprovidedbytheserviceproviders.

The study covered aspects of serviceproviders’performance.Thiswasvital sinceit would determine whether the serviceprovider completed their rollout accordingto the approved USP plan. This portion ofthestudythus looked intotheperformanceof the service providers, the rollout issues,servicedistributionandlayout,powersupply,maintenance,locationsofindividualandpublictelephony,marketingandUSPclaims.

The second aspect was the impact of theprogrammeontherecipientcommunities.Inthisregardstherelevantscopeof thestudyincludedpatternrecognition,socio-economicimpact, awareness level, vandalism, billingmechanism, future demand and complaintprocedures.

Thestudywasperformedbycollectingdatafrom the ground through questionnaires

20 OTHER ACTIVITIES

and interviews, afterwhich thedatawouldbeprocessed leading to the recommendationsforimprovementoftheoverallUSPimplementation.Thescopewaslimitedtothreeserviceproviders, as follows:

Yan, Kedah

Julau,Sarawak

Kinabatangan, Sarawak

HuluTerengganu,Terengganu

Lipis,Pahang

Districts

Maxis

TM

TM

NasionCom

TM

Individual

Payphone

Payphone

Individual&Payphone

Individual&Payphone

Fixed GSM

VSAT

VSAT

Satellite

ADSL,CDMA

ServiceProviders Type of Service Technology

The study found that the USP programme was beneficial for fostering family and social relationships,andtosomeextent,offerssomeeconomicadvantages.However,afewareasof the programme especially on the user awareness and service quality standard requireenhancementstobetterachievetheobjectiveoftheprogrammeinpublicandresidentialaccesstobasictelephonytotheunderservedareasandcommunities.

Details of the findings and recommendations of the study were presented to MCMC on 21 September2006.

IMPACT STUDY BY UNIVERSITI MALAYSIA SARAWAK

Back in 2005, the MCMC initiated theInformation Technology (IT) Literacyprogramme in Rumah King, Julau, Sarawak. The core objective of the programme wasto train the local community on the basiccomputerskillsandInternetaccesswiththefour units of personal computers providedtogetherwiththeprogramme,fullymaintainedbyTM,theappointedUSPserviceproviderforJulaudistrict.Thefacilitatoroftheprogramme,YayasanSalamMalaysia,placedavolunteertostay in Rumah King for the whole duration of the programme and conducted severalactivities.Othersupplementaryprogrammessuchasadult literacyclasses,medicalcamps

andinternationalcampswerealsoconductedtocomplementtheITLiteracyprogrammeaswellasimprovingthesocio-economicstatusofthelocalsingeneral.

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21OTHER ACTIVITIES

In January 2006, the MCMC appointedUniversiti Malaysia Sarawak (UNIMAS) toconduct an impact study to evaluate theeffectivenessof theUSPprogrammeand itsimpactithasonlocalcommunities,aswellastheeffectivenessofvolunteerasthefacilitatorforsuchprogrammes.Thedataderivedfromthestudywillbeusedasaguideforrolloutofsimilarprogrammesinthefuture.

Thestudywascompletedon31May2006andthe findings concluded that the programme was successful and respondents of RumahKing have positive attitude towards computers andwerehappywiththeprogramme.YayasanSalam volunteers have played an importantrole in increasing the usage of computersand internet at Rumah King, where 95% of respondentshadattendedtheITtraining.

However,lackoffundingfortheseeventshasreducedthecommitmentof thecommunityto participate in such event as it is a financial burden for them having to provide bothaccommodation and food to the visitorsinvolvedinprogramme.Itwasalsotoocostlyto operate the computers from the diesel-poweredgeneratorsetasthereisno24-hourelectricity supply in Rumah King.

PUBLIC AWARENESS PROGRAMME

In creating greater public awareness, theMCMC had organized official launches at two underserveddistrictsinSelangorandSabah.

Thevenueanddateofthelaunchingarestatedas below:

Districts

SabakBernam,Selangor

Tenom,Sabah

TM

TTdotCom

1Apr2006

15Jun2006

Service Provider Date of Launching

FOSTERING INTERNATIONAL RELATIONS

The implementationofUniversal Service isbeingwatchedwith interestworldwidedue toconcernsoverthewideningdigitaldividewhichcouldleadtosocialdisplacements.InternationalbodiesandregionalgroupingsuchasAIC,APTandASEANpromotetheexchangeofideasonuniversalserviceinconferences,forumsandworkshopsthattheyregularlyorganise.

TheMCMCtookpartintheseconferencesandworkshopsandsharedMalaysianexperiencesinformulatingtheUSPlegalframework,fundmechanismandprogrammeimplementation.

Inaddition,delegationfromVietnam’sMinistryofPostsandTelematicshasvisitedMCMCon4-7 December 2006 to obtain first hand information on USP framework and implementation inMalaysia.

22 OTHER ACTIVITIES

REVOCATION OF USP DISTRICTS

InFebruary2006,theMCMCrevokedCelcom(Malaysia)BerhadfrombeingtheUSPserviceproviderforthethreeunderserveddistrictsnamely Kuala Krai, Kelantan, Jempol, Negeri Sembilan and Sik, Kedah as Celcom was unable to implement the USP Phase 1 project inaccordancetotheirapprovedproposals.

After giving due consideration and goingthroughdueprocessofselectivebidprocess,the MCMC then re-designated these three

underserveddistrictstoTM.There-designationwasmadeeffectiveon2April2006.

BRIDGING THE DIGITAL DIVIDE BY THE ECONOMIC PLANNING UNIT

In 2005, the Economic Planning Unit (EPU)began an initiative called Study on NationalStrategicFrameworkforBridgingtheDigitalDivide.ThemainobjectivewastosynchronizeallprogrammesrelatedtoITdevelopmentinrural communities, currently conducted byvariousdepartmentsandagenciesatdifferentlocationsthroughoutthecountry.

Throughout 2006, the MCMC activelyparticipatedinallthemeetingsorganisedbyEPU,providingsupportandsharingitsexperiencesit had gained from the USP programmeimplementation.Besidessynchronization,themeetings were focused in formulating theprogrammeforthedevelopmentofbroadbandaccessinfrastructureforthestateofMelakaasthepilotstateinrollingoutbroadbandplan.

P R O V I S I O N I N G O F F I X E D TELEPHONY SERVICE ALONG EAST WEST HIGHWAY

In 2007, the MCMC will be looking at theprovisioning of fixed telephony service via Code Division Multiple Access (CDMA)technologyalongtheEastWestHighway.Theprovision of the service, which will requirefor the construction of communicationstowers, will be carried out at 20 proposedareasalongthehighway.Apartfromprovidingfixed line services, the towers, built for the CDMA service, will also serve the purposeofextendingcellularservices intotheareas,whicharebeingdeprivedofcommunicationscoverage.

TheEastWestHighway,consideredasoneoftheimportantrouteslinkingtheeastandthewestcoastofPeninsularMalaysia,spansoverthree USP districts namely Baling in Kedah, Hulu Perak in Perak, and Jeli in Kelantan. Currently there is no cellular service alongthe way as the cellular operators find it too uneconomical to provide coverage in thearea.

TM,thedesignatedUSPserviceproviderforthe three USP districts, has been given theresponsibility to provide the individual andcollective access services to the dispersedcommunities along the highway. As for thetowers,theywillbebuiltinaccordancewiththe standard tower specification endorsed bytheMCMCandwillhaveadequatepowersupply,accessroadtothesites,cabintohousethe equipment and other relevant facilities.Cellularserviceproviderswillthenbeallowedto share the towers and facilities for thedeploymentoftheircellularservice.

Initial work on the provisioning of the fixed telephonyservicealongthehighwaybeganin2006 when TM submitted the first draft its USPproposalon28June2006.Uponreceiptofthedraftproposal,theMCMCheldseveraldiscussionswithTMaswellasothercellularoperators to validate the proposal. Theproposalwas alsopresented to theTime2Technical Working Group members for their viewsandcommentsbasedontheexperiencesofrollingouttheTime2project.Consequently,severalamendmentshadtobeincorporatedto the proposal including the eliminationofthreeunnecessarysitestoreducetheoverallcost. The revision of draft USP proposalwas finally submitted on 23 November 2006 incorporatingthosechanges.

ItisexpectedthatapprovalfortheprojectcanbeobtainedintheQuarter22007andtimelinetocompletetheimplementationiswithin32weeksfromthedateofaward.DetailsoftheimplementationareshowninAppendix6.

LOOKING AHEAD

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23

24 LOOKING AHEAD

ROLLOUT OF STATES’ BROADBAND PLANS

The MCMC recognizes that broadbandinfrastructure has the potential of bringingsignificant economic and social benefits to the country.However,althoughtheavailabilityofan advanced communications infrastructurecanenrichthecommunityinnumerousways,theunevendistributionofthesamecanfurtheraggravatethealreadyexistingdigitaldivide.

Inordertonarrowdownthegaps,theMCMCwillbeimplementingvariousprojectsin2007particularly inrelationtothedeploymentofhighspeedbroadband.Theprojectsmayincludethe provision of broadband connectivity tocommunitiessuchasgovernmentdepartments,schools, universities, research institutions,hospitals, clinics and trade communitiesapart from the development of broadbandapplications and creation of more cybercentresthroughoutthecountry.

Theimplementationoftheprojecthowever,is subject to the ongoing USP RegulationsReviewexercise,whichisdueforcompletioninQuarter22007.

ROLLOUT OF USP TARGET BY MAJOR CONTRIBUTOR

ThecurrentmethodofdesignatinguniversalserviceprovidersforUSProlloutisbywayofabiddingprocessasprovidedforintheUSPRegulations. The current practice is that alllicensees(exceptCASPs)areallowedtobidfor theUSPprojectsandtheUSPFundwillthenbedisbursedaccordinglytoalldesignateduniversalserviceprovidersinaccordancewiththeir universal service plan for the districtsawardedthroughthebiddingprocess.

However in 2007, the MCMC may takeanother approach by allocating a fixedproportionofthesumcontributedbythosemajorcontributorsfortheirownUSProllout.TheMCMCproposedtosetathresholdforthe identification of the “major contributors” andonlymajorcontributorswithgoodtrackrecordsinrollingoutpreviousUSPprojectswill be considered to participate in thisprogramme.

Similar to the broadband project, theimplementation of this project is subject totheongoingUSPRegulationsReviewexercise,which is due for completion in Quarter 22007.

PERFORMANCE ASSESSMENT OF USP SERVICE PROVIDERS

In2007,theMCMCwillconductaperformanceassessment study togauge theperformanceof the designated USP service providers inimplementingtheUSPPhase1project.Thisstudy is a follow-up to the impact studycarried out by UKMP in March 2006, but with awiderscopetocovernineUSPdistrictsinthePeninsular,SabahandSarawak.

The findings of the study will be used by MCMC indecidingthemodeofimplementationforthenextphaseofUSPprogrammein2007.

ThisstudyistargetedtocommenceinQuarter22007.

USP CENTRAL MONITORING SYSTEM

The MCMC plans to establish a CentralMonitoring System (CMS) at the MCMC

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25LOOKING AHEAD

headquarters in Cyberjaya to monitor theutilizationofeverycomputerprovidedunderthelibrariesandUCCprojects.

Theintendedmonitoringisacomprehensivesystem that monitors user resources,computer and Internet utilization and theapplication systems. The CMS will recordandproducereports`online’forallactivitieson every computer including scheduledtrainingwhichcanbereferredtobyMCMCtoevaluateperformanceandeffectivenessoftheprogrammes.

The CMS will also be able to assist in theprojectmanagementaspectbyprovidingthebest solution for system maintenance andrepairsofequipmentatalllocations.Inactivecomputersthatmaybeduetofaultyequipment,poororlackofconnectivityandabsentofon-sitesupervisorscanbeimmediatelydetectedviaCMS.ThiswillallowtheMCMCtotakeappropriateandpromptactiontorectifythesituation.

The CMS will be utilized not only for thelibraries and UCC projects but also forother USP broadband project that may beundertaken by MCMC in the future. It isexpectedthattheprojectwillcompleteintheQuarter42007.

USP INDUSTRY WORKSHOP

UponcompletionofUSPRegulationsreviewexercise,theMCMCwillconductaworkshopexplain the new scope of USP systemimplementationtotheindustryplayers.

Participants of the workshop will compriseofrelevantindustrystakeholders,comprisingoftherepresentativesfromstateandfederalgovernmentagencies,USPserviceproviders,State-backedCompanies,MCMCandseveralotherrelevantprivateorganizations.

Theworkshop is planned to be held in theQuarter32007.

30 March 2007Malaysian Communications and Multimedia Commission

DomiciledinMalaysiaPrincipalplaceofbusiness

63000CyberjayaSelangorDarulEhsan

Financial statements for the yearended 31 December 2006

UNIVERSAL SERVICE PROVISION FUND

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27UNIVERSAL SERVICE PROVISION FUND

STATEMENT BY THE MEMBERS OFTHE MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION

We,Datuk Dr. Halim Bin ShafieandRaja Datuk Arshad Raja Tun Uda,beingtwoof the Members of the Malaysian Communications and Multimedia Commission which isresponsiblefortheUniversalServiceProvisionFund,doherebystatethatintheopinionoftheMembers of the Commission, the financial statements set out on pages 30 to 37 are drawn up inaccordancewithapplicableapprovedaccountingstandardsforprivateentitiesissuedbytheMalaysianAccountingStandardsBoardsoastogiveatrueandfairviewofthestateofaffairsoftheUniversalServiceProvisionFundat31December2006andofitsincomeandexpenditureand cash flows for the year ended on that date.

On behalf of the Members of the Malaysian Communications and Multimedia Commission:

Datuk Dr. Halim Bin Shafie

Raja Datuk Arshad Raja Tun Uda

Kuala Lumpur,

Date:

UNIVERSAL SERVICE PROVISION FUND28

STATUTORY DECLARATION

I,Haji Ruzlan Zabidi, the officer primarily responsible for the financial management of Universal Service Provision Fund, do solemnly and sincerely declare that the financial statements set out onpages30to37are,tothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribed and solemnly declared by the abovenamed in …………………… on

……………………

Haji Ruzlan Zabidi

Before me:

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REPORT OF THE AUDITORS ON THE FINANCIAL STATEMENTS OF UNIVERSAL SERVICE PROVISION FUND TO THE MEMBERS

We have audited the financial statements set out on pages 30 to 37. The preparation of the financial statements is the responsibility of the Malaysian Communications and Multimedia Commission’s members. Our responsibility is to express an opinion on the financial statements basedonouraudit.

It is our responsibility to form an independent opinion, based on our audit, on the financial statementsandtoreportouropiniontoyou,asabody,inaccordancewithSection36(2)oftheCommunicationsandMultimedia(UniversalServicesProvision)Regulation2002andfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

WeconductedourauditinaccordancewithapprovedStandardsonAuditinginMalaysia.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating the overall financial statements presentation. We believe ourauditprovidesareasonablebasisforouropinion.

In our opinion, the financial statements are properly drawn up in accordance with applicable approvedaccountingstandardsforprivateentitiesissuedbytheMalaysianAccountingStandardsBoardsoastogiveatrueandfairviewofthestateofaffairsoftheUniversalServiceProvisionFund at 31 December 2006 and of its income and expenditure and cash flows for the year endedonthatdate.

KPMG Mohamed Raslan Abdul RahmanFirm Number: AF 0758 PartnerChartered Accountants Approval Number: 1825/05/07(J/PH)

Kuala Lumpur,

Date:


BALANCE SHEET AT 31 DECEMBER 2006

Current assets

Contributionsandotherreceivables Advancepayments Cashandcashequivalents

Current liabilities Otherpayables Taxation

Represented by:

Accumulated fundDeferred tax liability

716,3344,242

2,098,047

2,818,623

20,55314,443

34,996

2,783,627

2,774,5009,127

2,783,627

710,5649,131

1,286,409

2,006,104

-13,800

13,800

1,992,304

1,988,5903,714

1,992,304

3

4

5

67

Note2006

RM’0002005

RM’000

The financial statements were approved and authorised for issue by the Commission’s members on

Thenotessetoutonpages33to37formanintegralpartof,andshouldbereadinconjunctionwith, these financial statements.

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INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED31 DECEMBER 2006

Income Contributions Interestincome Recoveryofbaddebts

Expenditure USPserviceproviders Allowancefordoubtfuldebts

Excess of income over expenditure before taxation Less: Taxation

Excess of income over expenditure after taxation

800,84555,9601,375

858,180

(48,229)(8,372)

801,579(15,669)

785,910

9

Note2006

RM’0002005

RM’000

697,29834,385

-

731,683

(67,896)(8,400)

655,387(9,628)

645,759



CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006

Cash flows from operating activities Excessofincomeoverexpenditurebeforetaxation Adjustment for: Interestincome

Operatingsurplusbeforeworkingcapitalchanges (Increase)/Decrease in working capital: Contributionsandotherreceivables Otherpayables

Cashgeneratedfromoperations

Incometaxpaid

Net cash from operating activities

Cash flows from investing activity Interestreceived

Net cash generated from investing activity

NetincreaseincashandcashequivalentsCashandcashequivalentsatbeginningofyear

Cashandcashequivalentsatendofyear

Cash and cash equivalents comprise: Bankbalances Depositswithlicensedbanks

801,579

(55,960)

745,619

18,45020,553

784,622

(9,613)

775,009

36,629

36,629

811,6381,286,409

2,098,047

110,6571,987,390

2,098,047

2006RM’000

2005RM’000

655,387

(34,385)

621,002

(374,953)(1)

246,048

-

246,048

28,439

28,439

274,4871,011,922

1,286,409

2,0101,284,399

1,286,409

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NOTES TO THE FINANCIAL STATEMENTS

1. PRINCIPAL ACTIVITIES

The principal activities of the Universal Service Provision Fund are to promote the widespread availability and usage of network services and/or application services throughout Malaysia by encouraging the installation of network facilities and the provision fornetworkserviceand/orapplicationsservices inunderservedareasor for underserved groups within community. The Fund commenced its operations on September2002.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ThefollowingaccountingpoliciesareadoptedbytheFundandareconsistentwiththose adoptedinpreviousyears.

(a) Basis of accounting

The financial statements of the Fund are prepared on the historical cost basis and in compliancewithapplicableapprovedaccountingstandardsforprivateentitiesissuedby theMalaysianAccountingStandardsBoard.

(b) Contributions and other receivables

Contributionsandotherreceivablesarestatedatcost lessallowance fordoubtful debts.

(c) Liabilities

Otherpayablesarestatedatcost.

(d) Cash and cash equivalents

Cashandcashequivalentsconsistofbalanceswithbanksanddepositswithlicensed banks.

(e) Income tax

Tax on the profit or loss for the year comprises current and deferred tax. Income taxisrecognisedintheincomestatement.

Currenttaxexpenseistheexpectedtaxpayableonthetaxableincomefortheyear, usingtaxratesenactedorsubstantiallyenactedatthebalancesheetdate,andany adjustmenttotaxpayableinrespectofpreviousyears.


(e) Income tax (continued)

Deferred tax is provided, using the liability method, on temporary differences arisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsin the financial statements. Temporary differences are not recognised for the initial recognitionofassetsorliabilitiesthatatthetimeofthetransactionaffectsneither accounting nor taxable profit. The amount of deferred tax provided is based on the expectedmannerofrealisationorsettlementofthecarryingamountofassetsand liabilities,usingtaxratesenactedorsubstantiallyenactedatthebalancesheetdate.

Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuture taxable profits will be available against which the asset can be utilised.

(f) Recognition of income and expenditure

(a) Contribution from licensees Contributionsare recognisedonanaccrualbasiswhen licensees submit their ReturnofNetRevenuestatementsforthecalculationofcontributionwhichis at6%perannum.LicenseewhoseReturnofNetRevenuestatementisbelow RM2millionisnotrequiredtocontribute.

(b) Advance payment to service provider Advance payment relates to advance payment made to the chosen service provider for thecapital andoperatingexpenditure in the implementationand provisionof access to basic telephony, public payphone services and internet accessinthedesignatedservicetargetareas.

It is recognised as an expenditure when the documents substantiating the expenditurearesubmittedandapprovedbytheCommission’smembers.

(c) Interest income Interestincomeisrecognisedintheincomestatementasitaccrues,takinginto accounttheeffectiveyieldontheasset.

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4. CASH AND CASH EQUIVALENTS

Bankbalances Depositswithlicensedbanks

110,6571,987,390

2,098,047

2006RM’000

2005RM’000

2,0101,284,399

1,286,409

5. OTHER PAYABLES

USPserviceproviders 20,553

20,553

2006RM’000

2005RM’000

-

-

6. ACCUMULATED FUND

Accumulatedsurplusbroughtforward Excessofincomeoverexpenditureaftertaxation

1,988,590785,910

2,774,500

2006RM’000

2005RM’000

1,342,830645,760

1,988,590

7. DEFERRED TAX LIABILITY

The recognised tax liability is as follows:

Accruedinterestincome 9,127

2006RM’000

2005RM’000

3,714

3. CONTRIBUTIONS AND OTHER RECEIVABLES

Contributions Less: Allowance for doubtful debts

Interestincomereceivables

699,135(15,398)

683,73732,597

716,334

2006RM’000

2005RM’000

705,698(8,400)

697,29813,266

710,564


8. AUDIT FEES

AuditfeesisbornebytheMalaysianCommunicationsandMultimediaCommission.

9. TAXATION

Currenttaxexpense Deferredtaxexpense

Reconciliation of tax expense

Excessofincomeoverexpenditure

IncometaxusingMalaysiantaxrate Taxexemptincome

Thecurrenttaxexpenseisinrespectofinterestincomenotexemptedfromtax.

Notaxationhasbeenprovidedforinrespectofcontributionincomelessexpenditurein the financial statements as the Fund was given income tax exemption by Ministry of Finance.Theexemptionperiodisapplicablefor10yearsfromassessment2003to2012.

10. FINANCIAL INSTRUMENTS

Financial risk management objectives and policies

TheFundisprimarilyexposedtocredit,interestandliquidityriskinthenormalcourse of the Fund’s operations. The Commission’s members review and agree policies for managingeachoftheserisksandtheyaresummarizedbelow.

Credit risk

Exposuretocreditriskismonitoredonanongoingbasis.Fixeddepositsareplacedonly withlicensedbanks.

Themaximumexposuretocreditrisk isrepresentedby thecarryingamountofeach financial assets.

10,2565,413

15,669

801,579

224,442(208,773)

15,669

2006RM’000

2005RM’000

5,9143,714

9,628

655,387

183,508(173,880)

9,628

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10. FINANCIAL INSTRUMENTS (CONTINUED)

Interest rate risk

The Fund has no borrowing during the financial year. Liquidity risk

TheCommission’smembersmonitorandmaintainalevelofcashandcashequivalents deemed adequate to finance the Fund’s operations and to mitigate the effects of fluctuations in cash flows.

Effective interest rates and repricing analysis

In respect of interest-earning financial assets the following table indicates their effective interest rates at the balance sheet date and the periods in which they reprice or mature,whicheverisearlier.

Fair values

Recognisedfinancialinstruments

In the opinion of the Commission’s members, there is no significant difference between the fair values and the book values of financial assets and financial liabilities.

In respect of cash and cash equivalents, contributions and other receivable, advance payment andother payables, the carrying amounts approximate fair valuedue to the relatively short term nature of these financial instruments.

Effectiveinterestrateperannum%

TotalRM’000

Within1 yearRM’000

Effectiveinterestrateperannum%

TotalRM’000

Within1 yearRM’000

Financialassets

Depositswithlicensedbanks

3.32 1,987,390 1,987,390 2.84 1,284,399 1,284,399

2006 2005

APPENDICES38

APPENDIX 1 – DETAILS OF USP PHASE 1 PROJECT ROLLOUT

MersingKota TinggiPontianSikYan*BalingBandarBaharuPadangTerapPendangKuala KraiTanahMerahPasirMasPasirPutehBachokGua MusangJeliMachangTumpatJasinAlor GajahJempolKuantanBentongBeraJerantutLipisMaranPekanRompinPerakTengahHuluPerakBeluranKeningauKunakRanauTongodKinabatangan*

NabawanPitasBeaufortKota BeludKota MaruduKuala PenyuKudatLahadDatuPapar

Districts

12345678910111213141516171819202122232425262728293031323334353637

383940414243444546

JohorJohorJohorKedahKedahKedahKedahKedahKedahKelantanKelantanKelantanKelantanKelantanKelantanKelantanKelantanKelantanMelakaMelakaNegeriSembilanPahangPahangPahangPahangPahangPahangPahangPahangPerakPerakSabahSabahSabahSabahSabahSabah

SabahSabahSabahSabahSabahSabahSabahSabahSabah

State

DiGiTMTMTMMaxisTMTMTMTMTMDiGiEBEBTMTMTMTMTMDiGiTMTMDiGiTMTMTMTMTMTMTMEBTMCelcomCelcomCelcomCelcomCelcomTM

TMTMTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotCom

ServiceProvider

2-Nov-0516-Aug-0418-Jul-058-May-0610-Nov-041-Mar-0518-Jul-0516-Aug-041-Mar-058-May-062-Nov-0516-Aug-0416-Aug-0418-Jul-0518-Jul-0519-May-0418-Jul-0518-Jul-052-Nov-0518-Jul-058-May-062-Nov-0516-Aug-0419-Sep-0519-Sep-0519-May-0419-Sep-0519-Sep-051-Mar-0516-Aug-0418-Jul-0419-May-048-Jul-0419-May-048-Jul-0419-May-0410-Nov-04

8-Jul-048-Jul-048-Jul-048-Jul-048-Jul-048-Jul-048-Jul-048-Jul-048-Jul-04

Fixed GSMADSL,CDMAADSL,CDMAADSLFixed GSMADSLADSLADSLADSLADSLFixed GSMWBA (3.5 GHz)WBA (3.5 GHz)ADSLADSLADSLADSLADSLFixed GSMADSLADSLFixed GSMADSL,CDMAADSL,CDMAADSL,CDMAADSL,CDMAADSL,CDMAADSL,CDMAADSL,CDMAWBA (3.5 GHz)ADSL,VSATFixed GSMFixed GSMFixed GSMFixed GSMFixed GSMADSL,CDMA,VSAT

ADSL,VSATCDMA,VSATWBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)

CompletedCompletedCompletedInProgressCompletedCompletedCompletedCompletedCompletedInProgressCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedInprogressCompletedCompletedInprogressCompletedCompletedCompletedInprogressCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompleted(Payphone)

CompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompleted

91171100200121101921750461220105131308223118200561260854924501054459511372406261350

441631061802371012818538

StartDate Technology

CompletionStatus

No. of Subscriber

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39APPENDICES

TenomSandakanSempornaSipitangTambunanTuaranTawauKanowitBelagaDaro

LubokAntuMeradong

LunduBetongBintuluJulau*

Kapit LimbangMarudiMatuMukahSamarahanSaratokSarikeiSerianSimunjanSongSriAmanTatau

LawasAsajayaBauDalatHuluSelangorKuala LangatKuala SelangorSabakBernamKemamanSetiuHuluTerengganuBesutDungunMarang

Districts

47484950515253545556

5758

59606162

63646566676869707172737475

7677787980818283848586878889

SabahSabahSabahSabahSabahSabahSabahSarawakSarawakSarawak

SarawakSarawak

SarawakSarawakSarawakSarawak

SarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawak

SarawakSarawakSarawakSarawakSelangorSelangorSelangorSelangorTerengganuTerengganuTerengganuTerengganuTerengganuTerengganu

State

TTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComCelcomNasionComNasionCom

NasionComNasionCom

NasionComTMTMTM

TMTMTMTMTMTMTMTMTMTMTMTMTM

TTdotComTMMaxisTMTMTMTMTMDiGiEBNasionComTMTMTM

ServiceProvider

8-Jul-048Julo48-Jul-048-Jul-048-Jul-048-Jul-048-Jul-0419-May-0416-Aug-0415-Mar-05

16-Aug-0415-Mar-05

16-Aug-041-Mar-051-Mar-0510-Nov-04

1-Mar-051-Mar-0518-Jul-051-Mar-051-Mar-0519-May-0418-Jul-051-Mar-051-Mar-051-Mar-051-Mar-0519-May-041-Mar-05

16-Aug-042-Jan-062-Jan-062-Jan-061-Mar-051-Mar-0516-Aug-041-Mar-052-Nov-0516-Aug-0416-Aug-0419-May-0419-Sep-0518-Jul-05

WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)WBA (5.8 GHz)Fixed GSMSatelliteSatellite

SatelliteSatellite

SatelliteADSL,CDMAADSL,CDMACDMA,VSAT

ADSL,CDMACDMACDMAADSLCDMACDMA,VSATCDMACDMAADSL,CDMAADSL,CDMAADSL,CDMACDMA,VSATADSL,CDMA

WBA (5.8 GHz)ADSL,CDMAFixed GSMADSL,CDMAADSLADSLADSLADSLFixed GSMWBA (3.5 GHz)SatelliteADSLADSLADSL

CompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompleted(KIV)

CompletedCompleted(KIV)

CompletedCompletedCompletedCompleted(Payphone)

CompletedCompletedInprogressCompletedCompletedCompletedInprogressCompletedCompletedCompletedCompletedInProgressCompleted(KIV)

CompletedInprogressCompletedInprogressCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedCompleted

5152714781161451432901843400

3440

3375770

44257014336450171211086500

357010001844123445217175487374108

11,459

StartDate Technology

CompletionStatus

No. of Subscriber

Total Subscriber

* Pilot Project

APPENDICES40

APPENDIX 2 – DETAILS OF USP PHASE 2 PROJECT ROLLOUT

Districts

Baling

BandarBaharu

Sik

Bachok

Gua Musang

Machang

Tumpat

Alor Gajah

Bentong

HuluPerak

Pitas

Betong

Kapit

Matu

Mukah

Saratok

Sarikei

Serian

HuluSelangor

Kuala Langat

Kuala Selangor

Pontian

SabakBernam

Dungun

Besut

Jeli

Lipis

Marang

Total

Kedah

Kedah

Kedah

Kelantan

Kelantan

Kelantan

Kelantan

Melaka

Pahang

Perak

Sabah

Sarawak

Sarawak

Sarawak

Sarawak

Sarawak

Sarawak

Sarawak

Selangor

Selangor

Selangor

Selangor

Selangor

Terengganu

Terengganu

Kelantan

Pahang

Terengganu

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL

ADSL,CDMA,VSAT

ADSL,VSAT

ADSL,CDMA

ADSL,CDMA,VSAT

ADSL,CDMA

ADSL,CDMA,VSAT

ADSL,CDMA

ADSL

ADSL

ADSL

CDMA

ADSL

ADSL

ADSL

ADSL

ADSL,CDMA

ADSL

18

10

18

11

21

13

8

47

29

45

11

17

2

8

18

12

30

10

35

12

23

26

13

17

50

24

7

535

770

320

422

316

252

320

188

1,082

534

777

980

884

50

557

596

479

715

461

10,353

675

1,484

381

931

819

753

951

561

541

27,152

16

8

19

8

30

9

8

30

39

57

24

22

2

30

5

30

23

14

68

16

16

23

25

34

27

22

27

33

665

786

328

441

324

282

329

196

1,112

573

834

1004

906

52

587

601

509

738

475

10,421

691

1,500

404

956

853

780

973

588

574

27,817

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

State TechnologyNo. of Settlement

Line Capacity

Individual Payphone Total

USP

Ann

ualR

epor

t20

06

41APPENDICES

APPENDIX 3 – DETAILS OF USP LIBRARIES PROJECT ROLLOUT

PACBesutPACDungunPACMarangPDSungaiChohPDSijangkangPerpustakaanSekinchanPDIjokPerpustakaanDaerahSabakBernamPDBaganTerapPDBaganNakhodaOmarPDTamanMuhibbahPDSimpangLimaPD Kg Parit 11PABetongPA KidurongPATatauPAPusatBDAPA KapitPALimbangPAMukahPASamarahanPASaratokPASarikeiPDSIJakarPD Kg TebeduPASerianPDSI Kg Rayang PASriAmanPD Kg. BeladinPAJepakPDSILongLamaPDSIBeluruPD Kg MangPD Kg EndapPDSISelalangPD Kg TebakangPDBatuLintangPD KanibonganPerpustakaanDaerahBentongPACBandarBaharuPAC Kota TinggiPACBandarPenawarPACPontianPD Surau Kg Keranji

BesutDungunMarangHuluSelangorKuala LangatKuala SelangorKuala SelangorSabakBernamSabakBernamSabakBernamSabakBernamSabakBernamSabakBernamBetongBintuluBintuluBintuluKapitLimbangMukahSamarahanSaratokSarikeiSarikeiSerianSerianSerianSriAmanBetongBintuluMarudiMarudiSamarahanSamarahanSarikeiSerianSriAmanPitasBentongBandarBaharuKota TinggiKota TinggiPontianBau

TerengganuTerengganuTerengganuSelangorSelangorSelangorSelangorSelangorSelangorSelangorSelangorSelangorSelangorSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSabahPahangKedahJohorJohorJohorSarawak

BranchBranchBranchRuralRuralRuralRuralDistrictRuralRuralRuralRuralRuralDistrictDistrictDistrictDistrictDistrictDistrictDistrictDistrictDistrictDistrictRuralRuralDistrictRuralDistrictRuralDistrictRuralRuralRuralRuralRuralRuralRuralRuralDistrictBranchBranchBranchBranchRural

TMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMTMMaxis

ADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLVSATADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLADSLVSATVSATVSATVSATVSATVSATVSATVSATVSATADSLADSLADSLADSLADSLADSLVSAT

Library*

1234567891011121314151617181920212223242526272829303132333435363738394041424344

District State CategoryServiceProvider Technology

*PA–PerpustakaanAwam(PublicLibrary)PAC–PerpustakaanAwamCawangan(BranchPublicLibrary)PD–PerpustakaanDesa(RuralLibrary)PDSI–PerpustakaanDesaSiberInternet(RuralInternetCyberLibrary)

APPENDICES42

APPENDIX 4 – MONITORING AND OTHER RELATED ACTIVITIES CARRIED OUT BY MCMC’S REGIONAL OFFICES TO SUPPORT USP PROGRAMME

Eastern Region – 23 USP districts in Pahang, Terengganu and Kelantan

ConsumersatisfactionsurveyforUSPHuluTerengganu

Meeting with Bentong District Office on USP Phase 2 programme

Site verification visit to USP Phase 2 Lipis

Site verification visit to USP Phase 2 Besut

Site verification visit to USP Phase 2 Jeli

ConsumersatisfactionsurveyforUSPPasirMas,PasirPutihandSetiu

Site verification visit to USP Phase 2 Gua Musang

MeetingonUCCprogrammewithUPENPahang

Site verification visit for relocation of 4 payphone sites in Gua Musang

Site verification visit to USP Phase 2 Pasir Mas, Pasir Putih and Setiu

Site verification visit to libraries in Bentong, Kuantan, Hulu T’ganu, Besut, Dungun, Marang and Kemaman

Site verification visit to proposed UCC sites in Kuantan, Maran, Pekan, Bera and Lipis

ProgressvisittoUSPHuluTerengganu

1

2

3

4

5

6

7

8

9

10

11

12

13

17-18Jan

27Jan

2-3Feb

5-6Feb

7-8Feb

3-4Apr

11May

27Jul

15-Aug

16Aug

4-5Sep

19-22Sep

6Oct

Activities Date

USP

Ann

ualR

epor

t20

06

43APPENDICES

Northern Region – 8 USP districts in Perak, Penang, Kedah and Perlis

ProgressvisittoUSPYan

ProgressvisittoUSPPadangTerap

ProgressvisittoUSPSik

2ndprogressvisittoUSPYan

ProgressvisittoUSPPendang

ProgressvisittoUSPBandarBharu

ProgressvisittoUSPBaling

ProgressvisittoUSPHuluPerak

ProgressvisittoUSPPerakTengah

2ndprogressvisittoUSPPendang

Briefing USP Perak to Chairman of K-Society

Site verification visit to proposed UCC in Naka

2nd site verification visit to proposed UCC in Naka

UCC Briefing to Kedah Chief Minister and EXCO members

Courtesy visit and USP briefing to new UPEN Perak Director

Site verification visit to USP Phase 2 Perak Tengah

Site verification visit to libraries in Baling and Serdang

UCC briefing to Kedah UPEN and District Office

Site verification visit to proposed UCC sites in Yan, Pendang and Padang Terap

Site verification visit to proposed UCC sites in Sik, Baling and Hulu Perak

Site verification visit to proposed UCC sites in Bandar Bharu and Perak Tengah

UCC meeting with UPEN Kedah and District Office

Briefing on UCC & broadband library to Penang State E-Community Committee

Site verification visit to proposed UCC sites in Pengkalan Hulu

Site verification visit to proposed UCC sites in Hulu Perak & Perak Tengah

Courtesy visit and USP briefing to new UPEN Kedah Director

UCC progress meeting with Kedah State Secretary and District Offices

3rd site verification visit to proposed UCC in Naka

Site verification visit to proposed UCC sites in Padang Terap

Site verification visit to proposed UCC sites in Pengkalan Hulu

14Feb

15Feb

1Mar

6-7Mar

8-9Mar

10-11Mar

6-7Mar

8-9Mar

25Apr

14May

31May

23Jul

1Aug

14Aug

15Aug

16Aug

4Sep

19Sep

3Sep

4Oct

5Oct

11Oct

12Oct

12Oct

6Nov

14Nov

14Nov

2Dec

4Dec

7Dec

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

DateActivities

APPENDICES44

CentralRegion–5USPdistrictsinSelangorandNegeriSembilan

Completion inspection for USP Phase 1 Kuala Langat

CompletioninspectionforUSPPhase1SabakBernam

CompletioninspectionforUSPPhase1HuluSelangor

USPlaunchatSabakBernam

PresentationtoJempolDistrictCouncil

Site verification visit to proposed UCC sites in Kuala Selangor

Site verification visit to libraries in Kuala Selangor

Site verification visit to libraries in Sabak Bernam

MeetingwithStateSecretaryofNegeriSembilan

Site verification visit to libraries in Kuala Langat and Kuala Selangor

ProgresssitevisitatJempol

Site verification visit to proposed UCC sites Kuala Langat

Site verification visit to proposed UCC sites in Jempol

Site verification visit to proposed UCC sites in Hulu Selangor

2nd site verification visit to proposed UCC sites in Kuala Selangor

PresentationtoChiefMinisterofNegeriSembilan

Site verification visit to proposed UCC sites in Sabak Bernam

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

20-21Feb

22-24Feb

27-28Feb

1Apr

27Jun

30Aug

4&13Sep

4&15Sep

11Sep

13Sep

14Sep

18Sep

4Oct

3Nov

30Nov

8Dec

14Dec

Activities Date

SouthernRegion–5USPdistrictsinJohorandMelaka

Site verification visit to USP Phase 2 Jasin

Site verification visit to USP Phase 2 Mersing

Site verification visit to USP Phase 2 Mersing and Kota Tinggi

Site verification visit to libraries in Pontian

Site verification visit to proposed UCC sites in Mersing and Kota Tinggi

Site verification visit to proposed UCC sites in Pontian

1

2

3

4

5

6

16Aug

17Aug

5Sep

6Sep

5Oct

6Oct

Activities Date

USP

Ann

ualR

epor

t20

06

45APPENDICES

SabahRegion–22USPdistrictsinSabah

MeetingwithserviceprovidersonUSPserviceperformance

2ndmeetingwithserviceprovidersonUSPserviceperformance

Site verification visit to USP Phase 2 Sipitang and Kuala Penyu

3rdmeetingwithserviceprovidersonUSPserviceperformance

SiteauditforUSPPhase1Tenom

USPlaunchinTenom

Site verification visit to 5 districts under Celcom

Site verification visit to 14 USP Phase 2 districts under TT dotCom

Site verification visit to Libraries

Meeting with ‘Unit Kemajuan IT Negeri’ on UCC project

MeetingwithSabahStateSecretaryonUSPPhase2,UCCandbroadbandlibrary

Site verification visit to 3 USP Phase 2 districts under Telekom Malaysia

Meeting with Kota Marudu and Tamparuli District Offices on UCC project

Meeting with Keningau, Tenom and Papar District Offices on UCC project

Meeting with Beaufort District Office on UCC project

Meeting with Kudat District Office on UCC project

Site audit for USP Phase 1 Tuaran and Kota Belud

Site verification visit to proposed UCC sites in Papar, Kota Marudu, Kudat and Tamparuli

Meeting with Tongod, Telupid, Kinabatangan and Beluran District Offices on UCC project

Meeting with Tawau and Semporna District Offices on UCC project

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

8Feb

10Mar

30–31Mar

5Apr

27-28Apr

16Jun

10–14Jul

7–14Aug

4–8Sep

15Sep

18Sep

2–6Oct

15-16Oct

19-21Oct

31Oct

2Nov

6Nov

13–17Nov

27-29Nov

12-13Dec

Activities Date

APPENDICES46

SarawakRegion–26USPdistrictsinSarawak

Kick Off Meeting on USP Phase 1 Bau at Kuching District Office

Briefing on USP programme to State Implementation and Monitoring Unit (SIMU) at Kuching District Office

Kick Off Meeting on USP Phase 1 Dalat District

Briefing on USP programme to SIMU at Sibu District Office

USP Impact Study with UNIMAS at Rumah King, Pakan

MCMC USP - ICT for Rural Development Conference at Hilton Kuching

Showcase-USP-CCDP Rumah King during the AZAM-SDI International Conference at Crowne Plaza Riverside, Kuching

ProgressMeetingonUSPdistrictsunderTelekomMalaysiaandMaxis

ProgressMeetingonUSPdistrictsunderCelcomandNasioncom

ProgressMeetingonUSPdistrictsunderTTdotCom

DiscussionwithStatelibraryonUSPBroadbandLibrary

Briefing on USP programme to SIMU at Miri Resident Office

Briefing to Deputy Minister of Infrastructure Development and Communication and Chief MinisterDepartmentonICT/USP/UCCdevelopmentproject

Briefing to Residents and District Officers on UCC Programme

DiscussionwithSarawakAssistantStateSecretaryonUCCsiteselectionandproposalforSarawak

Briefing on USP updates to Assistant Minister of Public Utilities Sarawak

Site verification visit to proposed UCC sites in Lundu, Bau, Samarahan, Simunjan, Sri Aman, LubokAntuandBetong

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

14Feb

15Mar

17Mar

22Mar

23–24Mar

19-20Apr

24–27Apr

22May

23May

24May

14Jul

8Aug

21Sep

27Sep

24Nov

11Oct

18–22Dec

Activities Date

USP

Ann

ualR

epor

t20

06

47APPENDICES

APPENDIX 5 – LIST OF RESPONDENTS TO USP PUBLIC CONSULTATION PAPER

ConsortiumASP

FirstPrinciplesSdnBhd

IPMobilitySdnBhd

ElectcomsBerhad

EBTechnologiesSdnBhd

Celcom(Malaysia)Berhad

HeiTechPaduBhd

MikroOasisSdnBhd

TelekomMalaysiaBerhad

MaxisMobileSdnBhd

DiGi Telecommunications Sdn Bhd

TimedotComBerhad


NasionComSdnBhd

TMNetSdnBhd

RealmEnergySdnBhd

PaycomSdnBhd

ScopetelSdnBhd

eCenturySdnBhd

SmartDigitalCommunicationsBerhad

AsiaspaceDotcomSdnBhd

SACOFASdnBhd

MiTVCorporationSdnBhd

SetiaHarumanSdnBhd

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

18Aug2006

21Aug2006

22Aug2006

22Aug2006

22Aug2006

23Aug2006

28Aug2006

28Aug2006

29Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

30Aug2006

Activities Date

APPENDICES48

APPENDIX 6 – DETAILS OF EAST WEST HIGHWAY PROJECT ROLLOUT

Gunung Inas

Kampung Bukit Buloh

Gunung Paku

Kg Ayer Kangar

Kg Ayer Musang

Kg Pahat

Gadang

Tenok

Cheruan

Palok

Banding2

TemenggorNew

SungaiBanun

Mendelum

R&RTitiwangsa

Charas1

SungaiBelang

Damai

SungaiMekong

Kolam Air Panas Pergau

Total

Baling

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

HuluPerak

Jeli

Jeli

Jeli

75m

75m

75m

75m

75m

75m

75m

75m

90m

90m

75m

75m

75m

75m

75m

75m

90m

75m

90m

75m

6

12

37

112

25

175

6

6

6

6

37

0

31

0

6

6

6

33

8

7

525

3

2

2

2

2

2

2

2

2

2

2

3

2

3

2

2

2

2

2

2

43

9

14

39

114

27

177

8

8

8

8

39

3

33

3

8

8

8

35

10

9

568

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Tower Location DistrictTowerHeight

IndividualLines

Collective Lines

Total Lines

No. of Lines

Documents

About the Cover · With its intricate design, the Wau Bulan (moon-kite) is a great work of art. It is the most attractive and the most popular kite of Malaysia. Legend has it that