PUTRAJAYA (Sept 19): Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail said today the universal service provision (USP) fund will reduce the estimated investment cost of Malaysia's RM21.6 billion National Fiberisation and Connectivity Plan (NFCP) and subsequently benefit users through the provision of affordable high-speed internet.

Dr Wan Azizah said approximately RM10 billion to RM11 billion from the USP fund will be invested in the NFCP, adding that the fund is managed by the Malaysian Communications and Multimedia Commission (MCMC).

"In total the execution of the plans under NFCP is estimated to cost RM21.6 billion for a five-year period, starting 2019. About RM10 billion to RM11 billion will be allocated from the USP fund and the balance will comprise investments by service providers in building fibre optic networks, mobile communication transmitters and others.

"This fund is strictly managed by the MCMC according to the law, to narrow the digital gap between the main cities and rural areas," she said in her speech at the launch of the NFCP here today.

On Sept 5 this year, theedgemarkets.com, quoting the MCMC, reported that the RM21.6 billion estimated budget for the NFCP will be half funded by the USP fund, while the other half will be financed by the capital expenditure of telecommunications companies (telcos) in Malaysia.

The MCMC indicates on its website that USP programme's main objective is to provide collective and individual access to basic telephony and internet services throughout the country.

According to the MCMC, USP initiatives can only be implemented in underserved areas within the community.

"The contribution to the USP fund is calculated based on the submitted return of the net revenue from designated services by all licensees. This is an annual obligation and licensees are required to submit the return and their audited financial statements of the previous calendar year by 30th of June of each year," the MCMC said.

During the press conference at the NFCP launch, Communications and Multimedia Minister Gobind Singh Deo said the USP funds will be allocated via a tendering process involving telcos.

Gobind said the telcos will decide how the funds will be used.

"This will be done through a tender process. The telcos will look at how and where these monies are expended, but it will be done through a tendering process, which will be transparent," he said.