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3G Wireless Spectrum Allocated in Malaysia
31st July 2002

The Malaysian Communications and Multimedia Commission (MCMC) today announced the award of two spectrum blocks for the implementation of the IMT 2000 services (3G) in Malaysia to Telekom Malaysia Berhad and UMTS (Malaysia) Sdn Bhd.

The MCMC began work on the development of the concept and proposed principles for the introduction of IMT-2000 services in early 2000. The formal process commenced on the 8 Feb 2002 when a Ministerial Direction was issued for the Commission to offer IMT-2000 spectrum whereupon an Invitation to Tender together with an Applicant Information Packet was released to the public on 28 Feb 2002. Up to three blocks of spectrum were offered at a price of RM50 million per block. The closing date for submissions was 29 May 2002.

A total of five bids were received from Celcom (Malaysia) Berhad, E-Touch Sdn Bhd, Telekom Malaysia Berhad, TIMESat Sdn Bhd, and UMTS (Malaysia) Sdn Bhd.

Applicants were evaluated on their proposals for service roll-out and coverage, infrastructure sharing, roaming, financial consideration, industry development, and management and technical experience.


Speaking at the announcement Tan Sri Nuraizah Abdul Hamid, Chairman of the MCMC said, "The MCMC is committed to ensuring that the investment entailed in rolling-out the infrastructure and services for IMT-2000 generates short and long-term benefits to all involved." She stressed the need for sharing and better management of resources in the industry, saying "The spectrum holders have committed to share or allow access to their network. This is in line with the sharing policy being promoted by the MCMC, as well as consistent with the licensing framework as envisaged by the Communications and Multimedia Act 1998."

Tan Sri Nuraizah emphasised that a licensee who does not possess the spectrum could still provide 3G services as any Applications Service Provider could work with the spectrum holder to provide 3G services to the public.

Under the bidding arrangement provided for by the MCMC, successful applicants will be given six months to satisfy the MCMC that they are able to commit to the proposals set our in their bid documents through detailed business plans. Tan Sri Nuraizah thus reminded the successful bidders that the process was not yet over. Successful applicants would be required to show, through these plans, how they can fulfil their commitments, or run the risk of not getting the spectrum assignment at all.

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