Asia Pacific Watch

Malaysian government issues two 3G licenses

MALAYSIA -- The Malaysian government has issued 3G mobile phone licenses to its two main operators -- state-owned Telekom Malaysia and leader Maxis Communications for 50 million ringgit ($13.2 million) each. However, it has declined to issue a planned third license to any of the remaining three bidders.

Telekom Malaysia and Maxis are likely to spend 2.5 billion to 3.5 billion ringgit on network infrastructure over the next two years. The Malaysian government wants a full launch of 3G services in 2004.

Three other bidders -- Time dotCom, Technology Resources Industries and newcomer E-Touch -- failed to make the grade for the third license. Third-ranked operator, DiGi.Com, majority controlled by Norway's Telenor, did not bid. Maxis said it would call for bids to build its 3G network infrastructure by the end of this year, though it has not yet decided on the amount to invest. Maxis and Telekom Malaysia have six months to submit business plans to the MCMC or risk losing their licenses.