Malaysia issues 3G licenses at the end of the year

date: July 13, 2001

Leo Moggie, Malaysian Communications and Multimedia Commission (CMC), said on Thursday said the government will hand out 3G licenses late this year.

However, Khir Harun, chief executive of Telekom Cellular, the mobile operator of incumbent telco, Telekom Malaysia, told reporters that 3G is "still conceptual," and that "nobody would want to use it," if operators build out 3G networks next year.

Mainstream take off of 3G in Malaysia probably would not happen until 2005, he said.

Khir also predicted industry consolidation as a result of the high cost of building out 3G networks. Only three operators will be left out of the five that operate in the market today, he said.

Executives believe only two or three firms may get the go-ahead to develop the expensive infrastructure needed.

Malaysia has five mobile network operators: Celcom , DiGi.Com , Maxis Communications, Telekom, and Time dotCom.

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