Malaysia may award 3G licenses

Malaysia may award 3G licenses

Agence France-Presse, Kuala Lumpur

Malaysia may award two more third-generation (3G) mobile licenses to spur competition in the industry, bringing the total to four, Deputy Prime Minister Najib Razak said.

"The government is currently holding two more blocks of 3G spectrum and, in order to create a more competitive environment, may consider awarding it in the near future," Najib was quoted as saying by the New Straits Times newspaper on Wednesday.

Najib said telecommunications service providers should benchmark themselves against world standards to ensure that not only tariffs and rates offered are competitive but also that service quality meets best practices.

In July 2002, two companies were awarded 3G licenses by the government -- Celcom (M) Bhd., a unit of Telekom Malaysia and Maxis Communications Bhd.

The two companies are expected to spend 7.5 billion ringgit (US$1.97 billion) on the services over the next decade.

On Tuesday, Celcom emerged as the first operator to roll out 3G services in Malaysia.

Malaysia's smallest mobile operator DiGi.com Bhd. last November revived its bid to secure a high-speed 3G license.

Malaysia's mobile phone penetration rate has reached more than 30 percent and the government hopes to speed up adoption rates and reach an official target of 38 percent by 2005 with new 3G networks.

The new technology allows speedy mobile access to data and video through the Internet.