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Malaysia's Maxis to award contact by end of 2003

August 18, 2003

Maxis Communications will award its first contract for a 3G mobile network by year-end, but is not expected to spend much before more Malaysians learn to send more than just text messages.

Chief executive Datuk Jamaludin Ibrahim said Maxis will not be awarding “big ones” until perhaps in the later part of next year. It is currently focusing on growing critical mass of mobile data users to make investments in the area profitable.

Maxis, one of Malaysia’s two 3G spectrum holders via unit UMTS Sdn Bhd, had said it would roll out commercial 3G services towards the end of next year with trial runs starting early 2004.

With equipment prices having fallen significantly since the 3G bubble three years ago, telecommunications equipment manufacturers are looking to boost order books in Asia by offering better deals. Two weeks ago, Singapore Telecommunications awarded a US$125 million (US$1 = RM3.80) five-year 3G contract to Ericsson after evaluating proposals for nearly three years.

Nevertheless, consistent with analysts’ expectations, Jamaludin said SMS-based applications would remain Maxis’ main mobile data revenue generator for the next two to three years or so.

“The (SMS-heavy) balance should change sometime in 2006 when 2.5G GPRS-based services will play a more dominant role relative to SMS-based applications,” he said at a media conference following the launch of the Maxis Developer Programme (MDP) in Kuala Lumpur yesterday.

 


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