Mar 18 2007, 04:34 PM
By YEOW POOI LING and LEONG HUNG YEE
PETALING JAYA: Two of the four winners of the WiMax (Worldwide Interoperability for Microwave Access) licence, which was announced yesterday, are all set to roll out high-speed wireless Internet services at affordable prices.
The four winners are REDTone-CNX Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd (formerly known as MIB Comm Sdn Bhd), Asiaspace Dotcom Sdn Bhd and Bizsurf (M) Sdn Bhd (a unit of YTL-e Solutions Bhd).
REDTone International Bhd group managing director Wei Chuan Beng told StarBiz that the 2.3GHz WiMax spectrum for Sabah and Sarawak would complement the group's nationwide Internet rollout plan.
Puan Chan Cheong
"We are very happy and thankful to MCMC (Malaysian Communications and Multimedia Commission) and the Government for entrusting us with the 2.3GHz," he said, adding that REDTone would be announcing its nationwide Internet rollout plan with its partner in the next two weeks.
Wei said the RM300mil in capital expenditure (capex) for WiMax would be funded via equity and bond issues.
"Our plan is very comprehensive. High-speed mobile Internet will have a major impact on businesses and individuals in terms of communication and their way of life.
"Imagine individuals having the leisure of watching their favourite RTM programmes on their mobile phones while they are overseas," he added.
Meanwhile, Puan Chan Cheong, chief executive officer of Green Packet Bhd, which owns Packet One, said winning the licence would put the company on an "equal playing field" with the big telecommunication players.
"We are happy and excited as the WiMax licence complements our existing wireless broadband services. We have the funds in place already," he said.
He said services were expected to be rolled out before year-end and consumers could expect "higher speed of Internet services at better quality and prices," adding that its WiMax broadband products would be targeted at enterprises.
There are many possibilities with WiMax, such as using Skype - a free voice over Internet Protocol (VoiP) solution - on mobile phones, which helps to reduce cost. "Of course, we will only see that in two years' time." Green Packet is currently installing in the Klang Valley its SONmetro infrastructure that can deploy broadband services using fourth-generation (4G) technology and long-range WiFi coverage.
Wei Chuan Beng
The other two recipients, Bizsurf and Asiaspace, were unavailable for comment. YTL e-Solutions, which owns 50% of Bizsurf, is expected to release a statement today.
YTL e-Solutions provides incubation services, including developing and incubating technology companies and Internet content.
Asiaspace, a telecommunications and broadcast infrastructure company, was awarded the right to build 50 cellular base stations in 2003.
Added on March 18, 2007, 4:34 pm
Added on March 18, 2007, 4:35 pmMalaysians will soon enjoy greater mobility when accessing the Internet - no need to be tied to modems, a WiFi hotspot or a cybercafe.
WiMAX, a technology that enables wireless broadband access, is close to being implemented nationwide after the Government awarded four companies yesterday with licences to operate such networks.
Bizsurf (M) Sdn Bhd, MIB Comm Sdn Bhd, Asiaspace Dotcom Sdn Bhd and Redtone-CNX Broadband Sdn Bhd were given licences to operate WiMAX (Worldwide Interoperability for Microwave Access) networks.
Bizsurf, MIB Comm and Asiaspace Dotcom will cover peninsular Malaysia while Redtone-CNX Broadband will serve Sabah and Sarawak.
Once these are in operation, Malaysians will be able to surf the Internet at ultra-high speeds from any point in the country, as well as enjoy new or improved Web-based services.
The four beat 13 other companies including telecommunications heavyweights DiGi.Com Bhd, Maxis Communications Bhd and TM Bhd.
The Malaysian Communications and Multimedia Commission (MCMC), the telecommunications sector regulator, made the announcement yesterday via a press release.
MCMC expects the winners to roll out their WiMAX services to 25% of the population in the areas given to them by year-end.
Also, it expects the Internet access speed to be no less than 1Mbps (megabit per second), which is equivalent to 1,000 kilobits per second. In comparison, Internet access via dial-up service is 56 kilobits per second.
MCMC also stipulated that the wireless 1Mbps service should be at "an affordable price."
At the end of third year, the companies are expected to roll out the services to at least 40% of the population in the areas they control.
MCMC also wants each company to invest between RM250mil and RM300mil during the first three years of WiMAX implementation.
A poll of Internet users in the Klang Valley shows that they expect better online access at cheaper rates from the four WiMAX licencees, JO TIMBUONG reports.
They are also excited about being able to access the Internet from wherever they are.
Civil servant Hezrul Ali, 31, said having the Internet so readily available would encourage more Malaysians to surf for information and entertainment.
"This would help bridge the so-called digital divide," he said.
A 32-year-old banker, who did not want to be named, said the increased connectivity would be welcome and hoped that the licencees would live up to their responsibilities.
"I am expecting really fast data-transfer speeds and a super stable connection; not like what I have to put up with now," he said.
REDTone International Bhd group managing director Wei Chuan Beng said the 2.3GHz licence (for Sabah & Sarawak) would provide REDTone an opportunity to play a meaningful role in helping the Government realise its aim of greater broadband penetration, SUSAN TAM reports.
Green Packet Bhd chief executive officer Puan Chan Cheong thanked the commission and the Government for allowing the company to play a part and help the country to achieve its national broadband plan.
Added on March 18, 2007, 4:39 pmPETALING JAYA: With 3G rollout in the country barely off the ground, spectrum licences for WiMax were announced yesterday and DiGi.Com Bhd has again been left out of the game.
Arguably competing technologies, WiMax is considered superior with higher Internet speeds of 70 megabits per second versus 3G's High-Speed Downlink Packet Access speed of 15 megabits per second.
The 3G, on the other hand, is superior to WiMax in voice communications.
On the winners' list, an OSK Investment Bank telecommunications sector analyst said: "It is clear that the Government feels that communications spectrum is a scarce resource and would rather give it to local providers.
"The idea of releasing the WiMax licences so soon after the new 3G licences is to accelerate competition in the broadband space."
The Government was keen to improve the penetration of Internet broadband services in the country, he said, adding that with only about 500,000 3G users in the country, the service had definitely not taken off.
"The move is very negative for DiGi. With all four spectrum blocks announced in one day, there is no guarantee that the Government will make further spectrum allocations in the future," he said.
A telco analyst at HLG Research said with the 3G rollout, cost had been a major barrier.
WiMax had a much lower cost of deployment of about RM300mil compared with 3G's RM1.2bil to RM1.3bil, said a TA Securities report.
However, the HLG Research analyst said: "With the low global 3G penetration rate, such as in the US at only 10%, it is hard to really say if the service has taken off or not in Malaysia."
The Malaysian Communications and Multi-media Commission was probably not too happy about the take-up rate, which was why WiMax licences had been given to content providers instead, with the hope of improving broadband penetration in the country, he added.
The downside for WiMax, however, is that compatible devices are not readily available in the country as yet. Ultimately, it will depend on which is finally accepted by end-users," he said.
TA Securities said on the broader scale, the Wimax service remained a longer-term prospect and would not have any impact on its "neutral" call on the sector.
On the move not to include DiGi, it said: "This would be rather perplexing and disappointing given the earlier fiasco over the 3G licence, not to mention the financial strength and commitment by DiGi if they were successful.
"We believe that these two technologies will co-exist, given the superiority of 3G in voice and WiMax will only carve a niche within the broadband wireless platform of the operators."
This post has been edited by Suk: Mar 18 2007, 04:40 PM
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