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Malaysia awards WiMAX licenses to emerging firms

Malaysia awarded four new wireless broadband licenses to small, emerging companies yesterday, shunning established telephone companies in a bid to diversify the telecommunications market.

A Worldwide Interoperability for Microwave Access (WiMAX) license each went to Green Packet Bhd, REDtone International Bhd, YTL E-Solutions Bhd and Asiaspace Dotcom Sdn Bhd, the Malaysian Communications and Multimedia Commission said in a statement.

The winners will each invest up to 300 million ringgit (US$86 million) in the first three years to roll out services, the statement added. There was no license fee.

The companies beat out 13 other applicants, including Malaysia's main telecommunications heavyweights Maxis Communications Bhd, Telekom Malaysia Bhd and DiGi.Com Bhd.

WiMAX is similar to the more familiar WiFi (wireless fidelity) that most laptops are equipped with. It has a higher capacity and operates across much longer distances and allows for voice, video, Internet and mobility services.

WiMAX expands broadband wireless access over distances of up to 50km and reduces the cost of implementing broadband.

An estimated 80 percent of Malaysia's 26 million people use mobile phones, but broadband and other services have yet to take off.

Chipmaker Intel Corp and manufacturer Motorola Inc are investing heavily in WiMAX and deployments of the system are taking shape worldwide.

The commission said the evaluation for the licenses considered multiple technology strategy needs, noting that a wireless broadband spectrum had been allocated to small companies in the past few years.

DiGi's chief executive Morten Lundal said in a statement its failure to obtain a license "has no impact on DiGi's core business," and that while it respected the government's decision, it "regrets the loss of opportunity to use our resources and skills to benefit all consumers."

Telekom and Maxis officials weren't immediately available for comment.

Winners are expected to roll out the service to a quarter of the population in their designated areas by year-end, and at least 40 percent by the end of the third year.
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