DiGi To Launch 3G By End Of The Year

KUALA LUMPUR, March 12 (Bernama) -- DiGi.Com Bhd is on track and waiting for the necessary approvals to launch its third-generation (3G) services by year-end, said chief executive officer Morten Lundal.

"Yes, we are on track. Two things we have to do. We have to get approvals, final approval and then we will launch the 3G services," he told reporters after the company's extraordinary general meeting here today.

The meeting focused on the 3G spectrum transfer to DiGi.

It was reported late January that the government has approved the transfer of Time dotCom Bhd's 3G licence to DiGi.

Lundal said the company received a lot of support with regard to the 3G spectrum and hoped to get the final approval from the Securities Commission.

He also dismissed shareholders' concern that the spectrum would bring a low value to the company, saying that DiGi was better off with 3G.

Lundal was also confident it would be able to fulfil conditions set by the Malaysian Communications and Multimedia Commission (MCMC) easily.

Meanwhile, Lundal would be leaving DiGi on March 31 and would be replaced by Johan Dennelind, the current chief financial officer.

Meanwhile, in a filing to Bursa Malaysia, Time DotCom and DiGi said they were seeking clarification on certain conditions imposed by MCMC namely, on the penalty imposed as a result of non-compliance with the detailed business plan, the effective date and procedures for the transfer of the spectrum.

These include the release of bank guarantee previously furnished by TT dotCom Sdn Bhd and obligation by TT dotCom upon the transfer of the spectrum to DiGi Telecom.

Both parties have agreed to, an extension of time of up to Apr 11, 2008 for acceptance of the said conditions imposed by MCMC.

-- BERNAMA