Malaysia Moves Closer To 3G Licence Awards

date: January 23, 2002 - source: BWCS

According to reports from CMP Asia the Malaysia government will issue tender documents for 3G licence applicants as early as next month. The government has opted to award three licences based on the W-CDMA standard widely adopted in Europe. The licences, which are expected to be awarded by mid-2002, will consist of a block of paired 15MHz spectrum and concessions will be valid for 15 years.

Earlier this month it was reported in the Malaysian Business Times that concerns over the financial credentials of potential bidders for 3G licences had lead the government to consider automatically awarding licences to the three incumbent second generation operators. However, Malaysia’s Communications and Multimedia Commission has since strongly refuted this and has stated that the awards will take the form of a beauty contest, open to all qualified bidders. 3G licence fees will be set at around US$13 million. 3G services are not expected to be launched in Malaysia before the end of 2003.

In last November, Maxis and Technology Resources Industries have both said that they are looking to the 3G MVNO model rather than acquire licenses and expand any existing networks. It has been the Malaysian government's intention to force consolidation amongst the five operators in the industry and so it is highly likely they will allow 3G MVNOs to exist.

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