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.