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Why DiGi failed to get 3G licence

DiGi.Com Bhd's failure to obtain a 3G licence was attributed to the lack of content and infrastructure that it has to back up the 3G rollout, a source with the Energy, Water and Communications Ministry said.

The source refuted claims that the ministry was against foreign players following the failure of DiGi in getting the licence as the decision was in line with the ministry’s plan to grow the country’s 3G industry.

On March 5, the Energy Water and Communications Ministry, through the Malaysian Communications and Multimedia Commission granted Time dotCom Bhd and MiTV Corp Sdn Bhd 3G licences. Telekom Malaysia Bhd and Maxis Communications were earlier granted the licences.

The source said: “The 3G licence was given to Time.dotCom because it is the only player besides Telekom that has a trunk line. This would create competition for Telekom.”

He said MiTV was given the 3G licence as it would be able to provide exciting content to users. It is also not against the exclusive satellite TV rights given to Astro.

In some countries, the source said, they have a balance of 3G licence given to mobile operators and the content providers to encourage growth in the industry.

The source said the ministry wants Time.dotcom to team up with independent content provider to attract more users.-theedgedaily

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