DIGI.COM Bhd, the country's smallest mobile operator, may submit a bid as early as next week to the telecommunications regulator for a licence to offer high-speed wireless Internet services under a new technology.
Business Times was told by the people involved in preparing the submission that DiGi, 61 per cent controlled by Norway's Telenor, is prepared to spend as much as RM500 million if it is successful.
The Worldwide Interoperability for Microwave Access technology, or commonly known as WiMAX, is similar to a long-range version of the popular Wi-Fi technology that lets computers near a small base station surf the Internet without wires.
But while Wi-Fi's range is limited to a few tens of metres, WiMax can, theoretically, work over tens of kilometres, allowing towns or cities to be blanketed with wireless coverage.
DiGi, which lacks a Malaysian licence to sell high-speed mobile services via a so-called third-generation, or 3G, permit is seeking alternative ways to offer movies and faster Web access on cell phones.
This is to avoid falling further behind rivals Telekom Malaysia Bhd and Maxis Communications Bhd, which have started 3G services
WiMAX can be used for several applications, including last-mile broadband connections, hotspots and cellular backhaul, and high- speed enterprise connectivity for business.
Although the licence for mobile-based WiMAX will be issued this year, building a complete infrastructure could take up to three years.
Industry executives estimate the time frame, could work in DiGi's favour as it would coincide with the time when most mobile phones in Malaysia are expected to have broadband Internet access.
DiGi has thus far resisted buying network capacity from MiTV Corp Sdn Bhd and Time Dotcom Bhd, winners of Malaysia's last two 3G licences in March, insisting that it will pursue alternative technologies to compete with Maxis and Telekom.
Currently, there are no companies with the spectrum rights to provide mobile-based WiMAX services in Malaysia, although tier two telephony service provider NasionCom Holdings Bhd has a licence to provide fixed-based WiMAX services.
NasionCom is in the early stages of building the country's maiden fixed WiMAX system at a cost of about RM200 million.
NasionCom and its tier two arch rival REDtone International Bhd are also said to be planning to submit bids for the mobile-based WiMAX spectrum rights.-Bussiness Times
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