Malaysia Hopes to Award WiMax Licenses This Fall

By CRIS PRYSTAY and E-LING LIAW
Wall Street Journal

August 2, 2006

http://online.wsj.com/article/SB115445617229723644.html?mod=googlenews_wsj


KUALA LUMPUR, Malaysia -- Malaysia could award its first WiMax wireless 
broadband licenses as early as October, its minister of energy, water and 
communications said, as the country strives to boost its Internet-transfer 
speeds and keep up with more technology-savvy neighbors such as Singapore 
and South Korea.

Minister Lim Keng Yaik said the licenses for the 2.3-gigahertz spectrum 
could be awarded "as early as October or November, it could be as late as 
sometime next year."

The 2.3-GHz spectrum has been dedicated to WiMax, or Worldwide 
Interoperability for Microwave Access, which enlarges 
wireless-broadband-access areas. Wireless-broadband services offer wireless 
Internet linkups within a wide-ranging but defined area, unlike 
less-powerful "Wi-Fi" networks that offer access within smaller areas, such 
as airports. With wireless broadband, laptop users can tap into the 
Internet from any location inside a designated coverage area, such as a big 
city or a larger region of a country.

The WiMax industry is growing quickly in Asia. At least 13 Asian countries 
are conducting WiMax trials. Singapore and South Korea both tendered WiMax 
licenses last year. Pakistan's telecommunications authority in June signed 
a contract with Motorola Inc. to build a countrywide mobile WiMax network.

The total Asia-Pacific WiMax market, including orders for base stations and 
revenue from commercial services, is valued at $106.4 million in 2006, and 
will grow to $4.3 billion in 2011, estimates U.S.-based 
technology-market-research company In-Stat.

WiMax is a particularly compelling proposition for developing countries, 
which can use the technology to offer broadband without laying down miles 
of fiber cables. WiMax could help Malaysia jump ahead of many developing 
countries in Asia, and overcome technology hurdles that have hampered 
broadband offerings, analysts say.

An earlier tender for the licenses, originally scheduled to close July 18, 
was called off. The government had planned to announce winners of the 
licenses Oct. 31. Mr. Lim said talks between the ministry and industry 
regulator, the Malaysian Communications and Multimedia Commission, were 
continuing over proposed changes to the tender license criteria.

"This technology will provide the opportunity to bring the whole country a 
step further into the broadband age," said Bryan Wang, managing director of 
In-Stat Asia Pacific. "Broadband penetration is really low, primarily 
because [national carrier] Telekom Malaysia's network is not strong enough. 
They cannot really provide high-speed broadband service in Malaysia."

Malaysia's planned WiMax network will allow telecommunication companies to 
provide last-mile broadband service in areas just out of reach of existing 
networks, as well as in communities where there is no connection, Mr. Wang 
said. A WiMax base station, for example, can extend broadband services from 
the last point of an existing fiber network to a broad area, without new 
cabling.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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