Malaysia wants telecom mergers

date: August 17, 2001

The Energy, Communication and Multimedia Ministry in Malaysia plans to use 3G telecommunications licences to speed up a consolidation in the telecoms industry, a senior said Friday.

The official said there were too many players in the industry and most were reluctant to merge, despite government advice.

"All this while, we have been very liberal towards the industry, allowing them to make their decisions but they have been too slow," the official told the press.

"We are planning to use the 3G strategy to force them to merge. We have to limit the number of 3G licences to be given out. In the process, we may see some mergers and consolidation of the industry."

There are five telecom companies in the country: state-owned Telekom Malaysia, Celcom Malaysia, Digi Telecommunications, Maxis Communications, and TimedotCom.

The official, who asked not to be named, said the ministry's policy was not to issue any more new licences in the telecoms industry.

He said guidelines for awarding 3G licences, which may include auctioning or tendering, should be completed by the end of the year or early 2002.

"We are not in a hurry to develop the 3G environment and launch the service as no country has fully implemented it yet," he said.

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