Malaysia expects only two winners

date: July 29, 2002

Malaysia will award its two biggest telecoms firms licences for 3G mobile services this week and may also grant one to a newcomer with powerful political connections, analysts said on Monday.

The government, which wants a full launch of the high-speed data communications service in 2004, will name the winners of the licences it is selling for 50 million ringgit ($13.2 million) each on Tuesday.

Telekom Malaysia , the dominant fixed-line operator, and Maxis Communications , the number one mobile provider, are expected to secure licences awarded on the quality of the bidders' rollout proposals and financial strength.

A third licence could go to a little-known newcomer called E-Touch Sdn Bhd, which is said to be part of a business group controlled by the family of the chief minister of east Malaysian Sarawak state.

But sources said two weeks ago the state might award just two licences as only two candidates had the required track record.

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