No 3G for DIGI at the moment. Too bad.

To all digi user out there.

TTdotCom, MiTV get 3G spectrums

By B.K. SIDHU

PETALING JAYA: TTdotCom Sdn Bhd and MiTV Corp Sdn Bhd have emerged winners of the hotly contested 3G spectrums.

The loser was DiGi.Com Bhd, the third contender and third largest mobile operator in the country, which many people had expected to be the frontrunner for the spectrum.

In a statement yesterday, the Energy, Water and Communications Ministry said the two winners had to work “with DiGi and other service providers as a MVNO (mobile virtual network operator) to achieve a win-win situation’’.

The statement added that all three had met the minimum threshold in terms of technical, financial and managerial capabilities and the regulator of the industry – the Malaysia Communications and Multimedia Commission (MCMC) – had recommended the two.

It said the “two successful applicants with its licence conditions would be notified by the MCMC.’’ All three submitted their bids in November.

With the award, TTdotCom – a unit of Time dotCom Bhd in which Khazanah Nasional Bhd has a stake – gets a new lease of life and it plans to use the 3G spectrum to roll out broadband services. Its officials declined comment as they said they had not been officially notified of the award by MCMC.

MiTV, a pay-TV operator was reported to have said that its 3G network will be used to deliver multimedia content and to provide voice telephony and voice-over-IP (VoIP) services. It will also provide wireless Internet broadband access to users.

The 3G network will also route MiTV's TV content into mobile 3G devices. The 3G services will also be used as a broadband access “return channel” for MiTV subscribers.

It has also signed pacts with NasionCom Holdings Bhd (a broadband phone company) and REDtone International Bhd (the country’s largest discounted call service provider) to act as an MVNO.

A source close to MiTV said yesterday the “award of the 3G spectrum is good for the country. It is for national interest that it has gone to two Malaysian companies even though all three contenders are qualified. It is good that it is done via a beauty-contest process rather than an auction exercise.”

He said that with this award consumers would have more choices and this would lead to better pricing of 3G services in the marketplace.

This is the second time the Government is awarding 3G spectrums. The first was in 2002 when five companies – Telekom Malaysia Bhd, Maxis Communications Bhd, Time dotCom unit Time Sat Sdn Bhd, Celcom Malaysia Bhd and E-Touch Sdn Bhd – made their bids for the three spectrums that were up for grabs.

Two spectrums, one each to Telekom and Maxis, were assigned and each had to pay RM50mil in assignment fee.

Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said in the statement: “MCMC has recommended that the two remaining 3G spectrum should be fully allocated in order to develop a more vibrant and competitive environment in the industry in order to provide 3G services for the rakyat.’’

The announcement, however, did cause some disappointment among investors who had traded on DiGi shares and the share price plunged 90 sen in intra-day trading to RM7.85. In contrast, TTdotCom, NasionCom and REDtone stock prices headed north given the bullish business prospects.

DiGi chief executive officer Morten Lundal said: “We are extremely disappointed and surprised by such a decision (over the award) and, if this is confirmed, we will immediately seek clarification from the MCMC.’’