Most telco players were surprised by the government’s decision yesterday to knock back the tender for Malaysia’s first wireless broadband licence.
At least three companies – DiGi.Com Bhd, REDtone International Bhd and NasionCom Holdings Bhd – made a bid, which ended yesterday, for a WiMax licence for the 2.3 GHz spectrum.
The Worldwide Interoperability for Microwave Access (WiMax) technology is similar to WiFi that most laptops are equipped with, except that the technology provides a higher capacity and operates across a much wider area.
It was developed to beam the Internet across cities using radio networks further than WiFi, which is limited to “hotspot” areas of around 50 to 100 metres.
REDtone group managing director Wei Chuan Beng said: “We are quite shocked by the decision.”
It would wait for the regulatory body, Malaysian Communications and Multimedia Commission (MCMC), to explain its decision, he said, adding that the company would continue to support and push for wireless broadband despite the setback.
NasionCom group managing director Peter Tham said the company had submitted a comprehensive proposal to bid for the licence in May.
“Naturally, we are disappointed but we respect the decision,” he said, adding that NasionCom had tried to contact MCMC for details on the decision but to no avail.
Asked if a second round of tenders for the licence could occur, Tham said: “From my experience it is not a common thing, but we are hopeful.”
He said there was a foreign news report that suggested another round of tenders could be called in the near future.
“The decision to cancel the bids is definitely a setback for the telco players,” Tham said.
An official with DiGi said the company was not prepared to make any comment.
“We have just heard the news from the media. At this stage it is too early to comment,” he said.
An AmReseach telco analyst said: “We are very surprised that the bids had been cancelled.”
He said there must be valid reasons, noting that the government had always been supportive of wireless broadband for the country.
An analyst with another research house said having wireless broadband was a natural progression for the country.
“We don’t see any reason for the delay in adopting wireless broadband. Any teething problems should be worked out over time,” he said.
When contacted by StarBiz, an MCMC official said: “We will be issuing a formal statement to the media tomorrow (today).”
Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said the tender had to be recalled because the specifications were not according to ministry policies and the conditions for the tender did not take into account the building of infrastructure and content.
“I'm a bit angry and disappointed with MCMC for not getting the ministry's input and ordered it (tender) to be recalled,” he was quoted by Bernama as telling reporters after opening the Conference and Exhibition IP Telephony-theStar
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