3G On Schedule

ASIA : The Malaysian Communications and Multimedia Commission (MCMC) today confirmed that 3G services in Malaysia would be rolled out as scheduled. The MCMC officially assigned two blocks of spectrum to Telekom Malaysia Berhad and UMTS (Malaysia) Sdn Berhad in March this year as the first step towards rollout of 3G services in Malaysia.

MCMC Chairman ( inset ), Tan Sri Nuraizah Abdul Hamid said “We are pleased to say that Telekom Malaysia Berhad has undertaken trials in accordance with the Detailed Business Plan (DBP) submitted to the MCMC and are on track with plans to initiate commercial services in selected areas in the first quarter of 2004. UMTS Sdn Bhd, which was assigned the second spectrum block, made the commitment in its DBP to carry out trials by the first quarter of 2004 and initiate commercial services by the fourth quarter of 2004.

“We feel that the timelines must be adhered to,” added Tan Sri Nuraizah. “Most of the other countries around the world who are implementing the IMT-2000 standard will be starting commercial services by the end of the year. A timely roll out of 3G services will ensure that Malaysia will be one of the first countries in the region to implement 3G services. This will in turn allow the industry to advance in the development of new services and harness the opportunities that will arise from 3G globally. This will allow us to achieve the National Policy Objectives articulated in the Communications and Multimedia Act 1998.”

In November 2001, the Minister announced the policy decision and the timelines for the implementation of the IMT-2000 standard (also popularly known as 3G). The Minister announced that three spectrum blocks were made available for bids in a tender exercise, with each block being offered at a price of RM50 million. The bidding was conducted via a “beauty contest,” where applicants were evaluated on their proposals for service rollout and coverage, infrastructure sharing, roaming facilities, financial consideration, industry development, and management and technical experience.

In February 2002, the MCMC issued an Application Information Package calling for proposals from the industry. In July, the MCMC announced the two successful applicants who were then required to submit Detailed Business Plans in support of their proposals. In March 2003, the MCMC concluded the bidding exercise by awarding two blocks of spectrum to Telekom Malaysia Berhad and to UMTS (Malaysia) Sdn Bhd.