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VoIP investors cry foul 2007-07-13
IT sounded like a good Internet business opportunity. However, as the saying goes, if it sounds too good to be true, then it probably isn’t.

Seven people from Spring Way Solutions Sdn Bhd, who paid between RM8,000 and RM40,000 each in October 2005 to become Voice Over Internet Protocol Telephone Service (VoIP) service providers, are crying foul, claiming that they have been cheated.

The Jalan Tun Razak-based company, which had signed up the seven, allegedly assured them that it was a lucrative business and also exclusive, as only 16 companies in Malaysia were given the right to run the service.

VoIP is a technology that allows one to make telephone calls through the Internet.

However, the group claimed they had been taken for a ride after they tested the VoIP system.

Speaking on behalf of the group at the MCA Public Services and Complaint Department yesterday, 50-year-old Chan Sow Len claimed the system was unable to function most of the time.

“We lodged a complaint with the company but it was not entertained. It was only in February last year that we received an e-mail, asking us to go over to the office.

“Imagine our horror when the company told us that they were upgrading the system and we had to pay an additional RM15,000 for the new system! It was ridiculous.

“Only then did we realise that something was wrong,” said Chan.

Chan, the director of Spring Way Solutions, added that they also suspected something amiss when receipts for their payments and refunds were not given, despite asking them repeatedly.

“We did not sign any agreements. We want our money back, which amounts to about RM100,000,” she said.

Chan added that she hired a lawyer to serve a letter of demand to the company but it was ignored.

As a last effort, Chan lodged a complaint with the Malaysian Communications and Multimedia Commission in March this year.

Chan claimed they were told that the company had breached the Multimedia Act 1998 by sub-letting the VoIP to them.

“As a licence holder, they are not authorised to sub-let it to any party. In this case, we were led to believe that the company was credible, but in the end, we have become victims,” claimed Chan.

The group lodged a report against the company at the Jalan Tun Razak police station on June 22.

The department’s senior legal adviser, Datuk Theng Book, believes there could be more victims and urged them to come forward.

By Dawn Chan
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