The Government will not issue any 3G licences. Instead, it will assign bandwidth spectrum enabling the high-speed fixed and mobile access with Internet Protocol (IP) based services, popularly known as 3G.
Industry speculation has been rife about which of the five telecommunications companies would be awarded a 3G licence. But now, it need not be limited to the telco players.
"The 3G is not just about mobile telephony. There has to be a paradigm shift in thinking on the issue," said a spokesman with the Malaysian Communications and Multimedia Commission (CMC).
The CMC, which is the regulator for the new Communications and Multimedia Act 1998, recently posted a discussion paper on its website focusing on the "Concepts and Proposed Principles on the Implementation of IMT-2000 Mobile Cellular Service in Malaysia" and invited public feedback.
Popularly referred to as 3G, International Mobile Telecommunications 2000 (IMT-2000) is a next generation wireless communications service, combining high-speed fixed and mobile access with IP-based services.
Industry speculation has been rife about which of the five telcos would be awarded a 3G licence. However, the CMC today corrected the popular misconception by pointing out that the licences issued under the new regulatory framework of the Communications and Multimedia Act 1998 (CMA) are service-neutral and technology-neutral.
Under the CMA, licencees compete in four categories of activities - as network facilities providers, network services providers, application service providers and content services providers.
Due to the lack of critical mass in Malaysia, industry observers noted that the country would most likely be able to support a maximum of two spectrum operators, which meant possibly leaving the country's other three mobile operators out in the technological backwoods.
However, in its discussion paper, the CMC has broached a provocative idea that there be one or two joint-venture companies - which may or may not comprise a combination of current telco operators and technology companies - to operate the 3G networks.
"This would save a lot of money since there would not be a need for a duplication of resources," the spokesman said at a Press briefing on 3G today.
The separation of services from the network and service providers - who also need not be just the current five telco players - would enable them to either buy, lease or rent facilities from the network operator to provide their services.
The possibility of a company set up to be a bandwidth wholesaler of sorts and therefore eliminating the competition for 3G spectrum among telcos has been bandied about by industry players for some time.
However, analysts and industry observers noted that the bandwidth wholesaler should not be one telco as this would present a conflict of interests.
While the concept of just one of two joint-venture companies building infrastructure for a 3G network sounds good, analysts and industry observers are adopting a wait and see attitude.
In fact, they note that the discussion paper - and the possible scenarios it presents - has generated even more questions than answers.