Malaysia Formally Awards 3G Spectrum

Malaysia's Telekom Malaysia is expected to roll out a 3G network pilot service in July 2003, according to Tan Sri Nuraizah Abdul Hamid, Chairman of the Malaysian Communications and Multimedia Commission. He added that the commercial deployment of the network is expected in 2004, at which time the second 3G license holder, UMTS Sdn Bhd is expecting to roll out its own pilot network.

Telekom's pilot service will cover the Multimedia Super Corridor areas i.e. KLCC, the Kuala Lumpur International Airport and Cyberjaya. Targeted areas for the launch of its commercial service will cover four districts, Central, Northern, Southern and East Malaysia, in early 2004. By 2010, Telekom's 3G network is expected to cover about 80% of the Malaysian population. UMTS Sdn Bhd, on the other hand, is expected to launch its pilot service early 2004 in KLCC, Sunway, Subang Jaya, Putra Jaya and Cyberjaya, and commercial rollout towards end of 2004. By 2014, UMTS is expected to achieve about 80% population coverage.

Telekom's 3G services rollout is expected to cost just over US$1 billion while UMTS Sdn Bhd' rollout is expected to cost around US$920 million over the next 10 years.

Commenting on the lengthy 3G license awards process in Malaysia, Hamid said "The world has certainly changed since we first announced our intension to roll out 3G services in Malaysia. We are certainly facing more turbulence, and much more uncertainty, with an on-going war in Iraq. This will no doubt affect not just economic growth but also society's mindsets for many years to come. But in Malaysia, we have to take the view that life must go on. Which bring us to IMT-2000, or 3G, a service that promises mobile broadband multimedia to both the businesses and individuals alike. The introduction of 3G services has attracted a lot of media attention - from the prices of the licenses, to the availability of the equipment, to the roll-out of the services itself as well as to the behavior of mobile operators worldwide."

Upon completion of the evaluation of the five bids in September 2002, it was decided that only two blocks would be awarded, that is, to Telekom Malaysia and UMTS Sdn Bhd, pending the submission and evaluation of their Detailed Business Plans. These have now been completed and the networks have now been formally informed what radio spectrum they will be allocated."

Posted to the site on 3rd April 2003