Malaysia sets rules for 3G beauty contest. <<they are slow learners but they learn it!!! Give the damn spectrum free of charge!!! That game theory chap should be hung by his tomatoes.>>>
By Reuters staff
12 April 2002
Government says there will be no minimum investment requirement.
Malaysia will not set investment levels for telecom operators bidding for expensive third-generation (3G) mobile services, a government minister said on Friday.
"It's a business proposition. The government has not set any minimum," Energy, Communications and Multimedia Minister Leo Moggie told reporters.
"But operators must take note their roll out programme will have to take into account that it will not be commercially used until 2004 and even then the level of usage will not be high initially."
The government will hold a "beauty parade" in July before awarding 3G mobile licences based on a firm's technical expertise, track record as a company and their infrastructure spending plans.
Analysts have estimated companies will submit investment plans of 1-2 billion ringgit ($263 million to $526 million) to bring in 3g technology.
The government has said it would charge 50 million ringgit for the licence fee, payable in instalments.
Fewer than three
Moggie said the government may award the licences to fewer than three operators.
"It's possible, if not enough meet the criteria," he said when asked if the government would cut back on the number of licences it wants to award.
Moggie said "domestic roaming" would be a key test in July's beauty parade as the government wanted its five mobile operators to expand mobile coverage in the country.
Telekom Malaysia Chairman Md Radzi Mansor said a recent study showed 7.4 million mobile users in Malaysia, a number expected to grow to 9.5 million by end-2002. The country's population is about 23 million.
Telekom will compete with number one mobile operator Maxis Communications, which is due to list this year, as well as Time dotCom, Technology Resources Industries (TRI) and DiGi. Com for the licenses.
Telekom shares were down five cents at 9.10 ringgit at 0353 GMT, Time's were down three cents at 2.39 ringgit, Digi's were down four cents at 4.76 ringgit and those of its potential 3G partner TRI were off seven cents at 2.39 ringgit.
3G euphoria wanes
Expectations for the commercial prospects of 3G have been radically cut back since the euphoria of 2000 that saw carriers bid billions of dollars for spectrum licences in Europe.
The expense of building networks, a lack of handsets and the absence of obvious 3G revenue drivers have contributed to a drastic downward re-rating of the entire telecoms sector.
NTT DoCoMo, which late last year launched the world's first commercial 3G service in Japan, has seen a disappointing consumer takeup of the service thus far.
In Europe, meanwhile, launch dates have been repeatedly pushed back, with the most bullish carriers looking to initiate commercial service late this year.
Elsewhere in Asia, auctions for 3G spectrum in Singapore and Hong Kong were scrapped last year when they did not attract more bidders than licences. Hong Kong awarded four licences for the minimum price, and set undemanding buildout rules that require networks to cover just half of the densely populated territory's population by the end of 2006.
In Taiwan, however, five winning bidders spent a total of US$1.4 billion in a 3G spectrum auction that ended in February and that analysts called expensive.
South Korea's cellular carriers, which have been among the world's most successful at getting customers to use mobile data services, plan to launch commercial 3G services next year. |
