Malaysia Outlines 3G License Procedure

The Malaysian Communications and Multimedia Commission (MCMC) has published its "Spectrum Plan" which outlines its plans for the 3G beauty contest. Three blocks of frequency bands have been determined for assignment. The tender application will include an assignment fee and an irrevocable bank guarantee. Compared to other nations, the assignment fee is comparably much lower. The application also includes an evaluation of the following criteria that must be reflected in the applicant's business plan.

• Service rollout & coverage

• Infrastructure sharing

• Roaming

• Financial Consideration

• Industry development

• Management and Technical Experience

The Commission will then select the three best applicants to have successfully fulfilled all the above-mentioned criteria coupled with a minimum score requirement of at least 60%. However, in the event that the number of 3G spectrum licenses offered is more than the number of successful applicants which meet the above requirement, then the Commission reserves the right to issue less than 3 licenses or even none at all.

Surprisingly, the MCMC says that it expects the 3G networks to start operating sometime in late 2003 or early 2004, about a year earlier than had been expected. In 2003, GPRS network relevant content is assumed to be readily available. As a result of this, it is expected that the data traffic generated in GSM networks will increase significantly. The traffic network operators then have to design their Radio and CORE networks based on the resulting traffic generated.

The remaining IMT2000 spectrum resources including the satellite bands can be assigned according to the requirements of the market at a later stage. When 3G services are introduced into the market it will be much easier to estimate the bandwidth requirements. As not all 2G operators will receive a 3G license, the MCMC says that it will analyse whether the mobile market can be positively developed if GSM operators who will not be assigned a UMTS license can be allowed to become Mobile Virtual Network Operator (MVNO).'"

Posted to the site on 17th April 2002