Universal Service Provision


USP RegulationsUSP Annual Report


The Universal Service Provision (USP) programme’s main objective is to provide collective and individual access to basic telephony and Internet services throughout the country. Service Providers tend to focus on commercially lucrative areas and this has created a gap between the “haves” in urban areas and “have-nots” in rural areas.  Often referred as Digital Divide, this gap in communication access may have social ramifications if not addressed properly at national level.

USP initiatives can only be implemented in underserved areas and underserved group within the community.  Underserved areas means;
  1. In relation to Public Switched Telephone Network (PSTN) or often referred as basic telephony services, any area where the penetration rate for PSTN subscribers in Malaysia is twenty per cent below the national PSTN penetration rate or where the PSTN services are not sufficiently available;
  2. In relation to broadband access services, any area where the penetration rate for broadband subscribers in Malaysia is below the national broadband penetration rate or where broadband access services are not sufficiently available;
  3. In relation to public cellular services, any area with a population density of eighty persons per square kilometre or less or where public cellular services are not sufficiently available;
whilst underserved group within the community means a group of people linked by similar characteristics from socio-cultural or economic perspective, within a served area, who do not have collective and/or individual access.

Hence, the USP programme is a tool for bridging the Digital Divide by acting as a mechanism for channelling private sector investment into unprofitable rural areas utilizing USP Fund which has been established under the provision of Section 204 of the Communications and Multimedia Act (CMA) 1998.

Contribution to the USP Fund by licensees is based on three factors as stipulated by The Communications & Multimedia USP Regulations 2002 (the USP Regulations) which are:
  1. The list of designated services;
  2. Weightage factors; and
  3. 6% of weighted net revenue.
Regulation 27 of the USP Regulations requires all licensees (except for Content Applications Services Providers (CASP) licensee holder), whose weighted net revenue derived from the designated services for the previous calendar year exceeds minimum revenue threshold of RM2 million to contribute 6% of the weighted net revenue to the USP Fund.

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 June of each year.

Pursuant to Regulation 36 of USP Regulation, the contribution and expenses including all initiatives implemented under USP programme will be detailed out in USP Report published by the Commissions on annual basis.
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