KUALA LUMPUR (July 28): The Malaysian Communications and Multimedia Commission (MCMC) is expected to announce the award of Phase 2 of the Universal Service Provision (USP) project worth RM600 million for the provision of public cellular service under TIME 3 Extension early next month, said sources.

The commission had in March last year invited eligible licensees to register their interest for the USP project, which is divided into three phases. The first phase of the contract, valued at RM800 million, was awarded late last year.

Plans to dish out the RM600 million second phase of the project are slated for early August 2015 and the last phase later this year, which is valued at some RM600 million.

The USP project involves the installation of tower and infrastructure, and the installation of equipment and electronics related to public cellular service under the concept of Radio Access Network (RAN) sharing technology, in underserved areas across the country. The installation of towers is broken up into 32 clusters.

“The first phase of the project had attracted some 200 companies and a handful of companies were awarded the RM800 million worth of jobs.

"The second portion has attracted some 100 companies it seems, but we are not sure how they will break it down,” a source familiar with the matter told theedgemarkets.com.

This time round, however, the MCMC is understood to have tightened the requirements and made stringent the criteria for the awards.

Playing a key role it seems is Datuk Seri Halim Shafie, who was appointed chairman of MCMC in January this year, for a two-year term. He is familiar with the whole set up as he was the chairman of the MCMC back in 2006 for a three-year term.

In announcing Halim’s appointment earlier this year, Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek had said, “I have assigned specific tasks for him to achieve. These include looking at good governance, which is in line with the government's efforts for all ministries and agencies.”

Some of the companies said to be in the running to bag the lucrative jobs under Phase 2, include edotco Group Sdn Bhd, which is wholly-owned by Axiata Group Bhd; Sacofa Sdn Bhd, which will soon become a 50%-unit of Cahya Mata Sarawak Bhd; OCK Group Bhd, which is more than 40% controlled by the Ooi family; Felda Prodata Systems Sdn Bhd, which is the information technology arm of state-controlled Felda Group; privately-held Esmartpay Solutions (M) Sdn Bhd; and Maju Nusa Sdn Bhd.

It is learnt that both Maju Nusa and Esmartpay Solutions (M) had been awarded large portions of the first phase award.

“There are many small companies in this business that have been awarded lucrative contracts,” the source said.

A check on the Companies Commission of Malaysia revealed that Maju Nusa is 26% controlled by Faris Najhan Hashim, 25.3% by Tan Kuan Huai, 25% by Ab Jabar Ab Rahman, and 23.7% by Looh Siong Chee.

The company has a paid up capital of RM10 million, and for its financial year ended January 2014, it posted a net profit of RM1.6 million on revenue of RM68.7 million.

Esmartpay Solutions, meanwhile, is 40% controlled by individual Ewe Teik Chuan and 30% each by Soo Hoo Sue Ling and Norshallyllah Osman.

For its financial year ended December 2013, Esmartpay Solutions registered a net profit of RM416,313 on revenue of RM125.6 million.