The Malaysian Communications and Multimedia Commission (MCMC) is finalising a detailed penalty scheme to punish service providers who fail to deliver promises made to users, in particular third generation (3G) service providers.

MCMC must ensure that 3G spectrum applicants do not make empty promises just to win custody of one of the three spectrum assignment blocks to be awarded by year-end.

"It's time for us (regulators) to be more serious with these people (service providers). I think we've been too kind so far," she said at an industry briefing on the rollout of 3G.

She said the ground rules for technical and service standards for mobile services, inclusive of penalty clauses, will be implemented by June or July.

"We will work out the details just to show how serious we are. It should be ready by the time the (spectrum) is assigned," she said.

The industry watchdog had until now resisted imposing stiff penalties because it was pursuing a vision for a self-regulated industry, she added.

Nuraizah also said the MCMC has announced that in addition to the 50 mln rgt price tag for each 3G spectrum, winners will have to post an additional 50 mln rgt bond which may be used to pay any penalty.

On whether new licences will be awarded, she said licensing is a separate issue.

"Come in with what you have to offer. If your proposal is so good that you deserve to be considered for a licence, then, please apply for a licence. Don't confuse the two (spectrum award and licensing)," she said.

The spectrum assignment is for a period of 15 years, she said, but added that "there is nothing to say that you cannot extend it. If it is good for the industry, there is a possibility of an extension."