Malaysia's GSM network, DiGi Telecommunications has said that it will not participate in the country's forthcoming 3G auction, preferring instead to operate as a Mobile Virtual Network Operator (MVNO).
Said Mr Tore Johnsen, Chief Operating Officer of DiGi said "We already have all the necessary licences to provide the end-user with mobile multimedia services on 2G, 2.5G and 3G. DiGi will, therefore, continue to invest in and to optimize our existing infrastructure to provide the end-user with advanced and affordable mobile multimedia services."
"Under the 3G spectrum assignment process, the assignees are required to sell capacity at competitive prices to other players in order to optimize the nation's network. This presents a clear opportunity for DiGi to purchase capacity as an MVNO for the benefit of our growing customer base. For 3G network operators, DiGi's capacity purchase will provide a guaranteed increase in traffic on their network, reducing the risk of under-utilization and supporting their network investment.
On DiGi's decision not to submit a bid for a 3G spectrum assignment, he said it was a strategic one, taking into consideration DiGi's core and leverageable strengths and the 2G/3G evolutionary process. This also supports the government's call to the industry to avoid duplication of infrastructure and optimize capacity, he added.
In a country with five mobile phone networks, the government is only offering three 3G licenses. With a widely expected merger between Telekom Malaysia and Technology Resources Industries (TRI), the government could face not having a competition for the licenses and will probably have to award them at the reserve price.'"
Posted to the site on 29th May 2002
Posted to: www.cellular-news.com/story/6818.php