This article first appeared in The Edge Financial Daily on August 1, 2018

KUALA LUMPUR: Deputy Education Minister Teo Nie Ching said the ministry will be calling for a fresh tender by early next year to continue providing around 10,000 schools nationwide with Internet connectivity.

The ministry has expressed unhappiness with the current service provided by YTL Communications Sdn Bhd under the RM4.45

billion 1BestariNet project.

“The ministry will be choosing the best proposal from market players which gives the best pricing and Internet speed,” Teo told reporters at the parliament lobby yesterday.

“The direction of the new government is that all contracts to be awarded will be on an open tender basis,” she added, adding that YTL will not be excluded in the upcoming bid.

Teo also said the ministry is  considering setting aside funds for schools to choose their own preferred services.

YTL was awarded the RM4.45 billion contract in 2011 to implement the 1BestariNet project over 15 years.

Under the contract, YTL was expected to roll out the services to reduce the digital divide between rural and urban students within 30 months from end-December 2011, of which it was paid RM663 million.

In 2016, YTL found itself in the soup after the auditor-general highlighted the firm’s failure to deliver internet connection to more than 4,000 schools, with delays ranging from 12 days to 439 days.

Asked if the ministry plans to terminate the contract, Teo said: “We have already signed the contract, and that is the problem. Of course, we are not satisfied.”

For the services provided between July 31, 2016 and April 30, Teo said YTL was paid a sum of RM741.2 million.