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Why Lim Keng Yiak is EXTREMELY silent on what are the reasons that DiGi is denied 3G license but instead granting the 3G license to two non-mobile operators: TTdotcom and MiTV?

Well, my guess is Digi is being punished for its impetuousness in not selling down its stake.

It may well be a case of 'who blinks first'. I'd support Digi if not for the bloody rude letters I'm getting from their outsourced lawyers on some outstanding bills that were already sorted out from my forfeited deposits. Serve you right Digi. Ha!

long live celcom and maxis!

serves u rite msia! another msia boleh attitude. msia boleh = we can do whatever we want.

groo,

What you mean by 'serve u rite msia'? What's wrong with the ward of 3G license? Someone have to get it and lose it anyway. What if Digi being awarded and MiTV or Time complain? Will you gonna say it's Msia boleh attitude again?

We all know the fact and the last thing we need is your this kind of whining crap.

Aih..
U see, you got to be with the govt. or u are you of the game.
Simple and easy.
In or out you choose.

I heard that one of the reason that given is 3G license should given to malaysian's company. If this is the main reason of why Digi failed, it's very unconvincing for the future foreign investors.

But thinking the other way round as a malaysian, I'm quite agree on G decision as long as Mitv and TT can fully explore and utilise the 3G.

Bring rent seeking to another level.

I am not surprise, since many politikus has little clue how businessworks. Rent seeking is the fastest way for them to gather wealth.

Since 3G is not a lucarative business(at the moment), Digi can let those 2 company rot. BTW, all developed country charge hundreds millions to half billions dollar for 3G license, so is the gahmen giving TTdotcom and MiTV's free 3G license? If not, getting money for the 3G license is a big problem under current (Malaysia) market.

geovanni : whining? I think your are either clueless or apologist.

Whats the problem if you award the license to a foreigner who only has 61% stakes? The country already got 2 Msian celcos with the license. Can MiTv and TIME rollout their 3G network on time?? They got to be crazy to be spending huge amount of money when 3G is not even profitable yet. IMHO we need competition to keep a check and balance in the industry and who else can do a better job if not DiGi. What track record does both TIME and Mitv has? They only got political connections which is the only thing that is necessary in Msia (its not what u know, but who u know!!!)
I am glad that DiGi won't even bother to be a MVNO for both TIME and MiTv, so lets see how are they gonna plan their rollout strategy....interesting times ahead!!

If I am not mistaken Digi said specifically they want to be a MVNO when the 3G licence was first offered citing high investment cost (which I am sure is much lower now)...so what does that mean to the gahmen at that time? ...your guess !
I think its a matter of sincerity in being a long term investor in Malaysia that mattered and giving to the 2 parties in particular is an entirely different ballgame...just my 2 sens....

Either way, I think its a blessing in disguise for Digi.

3G has only 3% of the world market share. To roll out 3G now will be a financial suicide. Best for them expand their business & divesify.

800 mil today will be 400 mil tomorrow.

If digi could only provide free GPRS, this will immediatelly/gradually destroy there competitors.

say, spend 400 mil (of 3g savings) to provide free internet access. Capture 80% of the hp market in 1-2 years. Then dictate the terms.

As mentioned in earlier post, the licence IS a requirement to dictate their FUTURE directions. The budget for 3G has been included into their 2006 capex. Even the LOI has been signed with Siemens. Telenor have tons of experience deploying 3G over the last few years. Which candidate would have rolled out the services in the fastest possible time?

The scenario now? Are we going to witness an IPO ala Indah Water & KL Monorail? More Govt soft loans and EPF money being 'invested' into 3G for want of better returns? And if the whole works don't work out, sell it back to the Government PLUS 'management' costs?

Sorry if I sounded so pessimistic, but lets hope that these old movies won't have a rerun!!

Basing on their track records, it may just be a blessing in disguise as am sure they will bring forward more goodies. Nothing is impossible, as the saying goes - when the going gets tough, the tough gets tougher!

Some examples - prepaid service [although its during Swisscom days] and of course the clever switching techniques that gives you 1 flat rate for the whole country.

Digi is known to be a market innovater, bringing in creative services to a rather boring malaysia market. The are pioneers to variety of data services. While Mr. Lundal has every reason to be upset, things are still very much in infancy, anything can happen.

First, you could expect either one to tie up with Digi in a JV (if Telenot agrees), set up DIGI 3G sdn. Bhd and Digi sets up the network and the license winner provides the content and services.

Secondly, Digi may end up buying the license from anyone of them (very sad). If it's sold at minimum fees, then the MVNO startup will take place with the license holder getting a chunk of the spectrum to offer content services.

The profit numbers and ARPU being brought in by Digi to the Telenor group is favourable and good. So it doesnt make business sence for telenor to leave Digi.

AS for Mr. Lundal's upsetness on bringing in 2 new players in the scene, he should look at some more mature markets like Japan. Having 3 strong players in the scene, last year the Japanese government awarded 2 new license to 2 broadband operators, E-Access & Softbank.

Today, if you search the telco news scene in japan, u'll see that there is talk that Vodaphone KK (3rd operator in japan) is in talks to sell it's entire stake to softank. Vodaphone has been loosing business and customers. And they are poist to loose more when the 2 new operators come in. As such, Vodaphone probably is making a good choice (if the news are true) to sell to softbank.

http://business.scotsman.com/latest.cfm?id=326762006

http://in.tech.yahoo.com/060303/137/62siw.html

Now, when softbank takes over Vodaphone KK and toagtehr with e-Access, the japanese mobile market is going to go through a price revolution war. You can expect incumbants like KDDI & NTT to face hard competition as the new incumbants have already planned for cheaper rates when they go live this year!

Telecom Egypt was given operator license twice in the last 10 yrs, and they sold it to Mobinil & Vodaphone EGypt. Now they desperately want the 3rd license, only god know if they will win the bid this time around!

So anything can happen in the telco world. What we pay for a 3G license in malaysia is peanuts compared to what othera would end up paying in other parts of the world.

What's the fuss about this 3G licence? Will 3G ever take off in Malaysia? I doubt it. I thought somebody told us to save some money to pay for the petrol? 3G cost money, a lot more money!

It will, but dont expect miracle my friends. Having 3G set up is like putting the foundation to your house. Once you have the foundation to all places around your house, you start building the walls, which are platforms that support 3G services, like IMS and HSDPA.

Then you start painting the walls and putting fancy furniture. Thats when you start killer services. Malaysia is in the right track, we have very cheap call rates, especially true with for 3G. Maxis to maxis 3G calls were same rate as voice, thats insane!

The only stumbling block now is the handset & terminal card cost. This will reduce over time, like any other technology. Remember paying RM1000 for a monochrome nokia phone 8 yrs back? The same story here. Not many can afford 3G phone.

I think we should be optimistic about the technology but not too complacent about the operators providing them to us. We have to constantly be demanding for the best services at the best rates.

Goks
However once you have all those foundation, etc etc set up, things/tech would have moved on.
Also, remember what happened to WAP?
We should also consider that most people get a hand-phone to do simple messaging and voice conversation. Thats why Pre-paid and sms are such a lucrative business. Almost everyone I know is using prepaid.. ie .. "no need to pay so much.."

just my 2 cents :)

since digi has already paid some money to buy the un-needed 3G equipments for the 3G spectrum, it would now cause its parent company to spend that money overseas ...

so much for bringing foreign direct investment into malaysia ...

BN boleh ...

Dear kevy and D15C0V3RY...

If we all thought like you, i.e. new technology will never take off/costs too much/not many people using/rather have old tech such as sms, then m'sia will never be a technologically advanced society.

Look at the Japanese, always ready to test and try out new technology and provide constructive feedback to their government. That is how they become one of the most technologically advanced society in the world.

3G may not be making profits for the operators now. It may be expensive now. It might not have very interesting content now.

But something must be happening right for the 3GPP to standardize UMTS and make it the most widely adopted standard for 3rd generation mobile telephony in the world.

M'sia is right to adopt UMTS as the logical successor to GSM, the most popular 2G telephony service in the world. And, by the way, GSM is the platform that you use to send your SMSes.

Will 3G ever take off in Malaysia?

It's like asking whether ADSL would take off while we were still at the stage of ISDN and analog modems.

We will see the full potential of 3G when we get unlimited international 3G roaming at the price of a local 3G subscription, much like what blackberry is with GPRS.

Imaginge countless possibilities of a mobile MSN or Skype that come with free voice and video.

That will be mobile broadband at its best !

Kevy,

Thanks for the wap reminder. But it's not all the same my friend. Wap had it's limitation, so did GPRS. People will nto adapt a technology if it wasnt better then what they already have. With 3G, first you have faster net access, pretty much like the first generation streamyx but with mobility.

With HSDPA & HSUPA, you are talking about high speed broadband, up to 10Mbps (currently achievements) over any 3G source. now, lete me ask you, would you pay RM88 for 1MN streamyx or are you willing to pay Rm120 for 1-2MB unlimited broadband access, anywhere in malaysia with 3G coverage? I would pay the extra Rm40 for the mobility.

You are also correct to say that mobile phones are primaryly for call and sms. But this changes with the matuarity of the society. Look at Japan!

cre8tif,
Digi di not procure any 3G equipment (from whats news out there). They only signed an LOI with Siemens and if at all they got the license, they will probably issue and RFP out to a bigger pool of vendors to see who gives them the best deal.
Cheers.

Geovanni,

After reading ur postings i think u r just freaking wasting my time if i really bother to engage u in a debate.

A gamble gone wrong.

In reality, 3G will die here.

Reason : We don't have enough middle class that earn salary of RM3000+. And with near 50% public debts, most money are channel to the banks instead than 3G spending. Do your own spending you will know that.

At the moment, all telco is clueless about the right price to hit the market.

Without volume of middle class, it will RIP as what happens to iridium phone: Limited rich user can never pay off the huge maintennce fees.

Solution : "clean and efficient" government policy to increase the people spending power. In short, pray.

Here's what i DONT understand. Apparently the Malaysian Govt is in need of money so they do away with fuel subsidy. Ok no biggie. Im a freetrader anyway. However, if the Govt needs to balance its budget----1. why were these 3G licenses sold at a major discount to the previous two? 2. why werent they AUCTIONED and may the highest price win (good for the Govt)?
SOMETHING SMELLS ROTTEN IN KLANG VALLEY.....oh wait its just my water....

Only 1% of Malaysian took up ADSL. As for 3G, I think maybe less. Malaysia is such a small market. Coupled with the ever increasing inflation and decreasing spending power, obviously four or five 3G players won't survive. So, what can we do here? Dream on, my friend...

If the government had forced TMB to open up the last mile connection to other ADSL providers, you may see a different scenario on ADSL acceptance in Malaysia.

In the case of 3G, we don't have that monopolistic policy. Hopefully 3G prices will drop like what is happening in the Malaysian mobile market, making mobile calls in Malaysia one of the cheapest in the world.

Imagine what will happen when you can have MSN & skype on mobile.

Every kid with a mobile phone would want that. Now stretch your imagination a bit on how that would impact the 3G market.

im no expert in this 3G stuff, but i read somewhere WiMax is far more better than 3G. Why not DiGi go for that license and take revenge and be on top for a change, I would switch over if they went with WiMax. Unless the G still wanna screw them.

tiredguy:

DiGi did mention that they will not play MVNO to TT.Com and MiTV. Therefore, there is a chance that they will not play the 3G game, but skip a generation to 4G technology.

WiMax does indeed provide higher speeds, but limited mobility (i.e. you won't be able to use WiMax on-the-move in a car, for example).

On the other hand, DiGi might choose to buy off one of the spectrum holders. In this case, it could be TT.com (whereby the government via Khazanah would reap its benefits).

can't help but to be surprised that Digi was left out in the 3G license thingy. Anyway, instead of bragging over spilled milk, we should look at how Digi will react to it. Right now, Digi said they will not be partnering with Time.com or MiTV and technically is handicapped. If this scenario is true, what is the consequences? The gahmen knows Digi will be handicapped without a 3G license, and giving out 2 3G license to time and mitv will make the 3G market competitive and pass the savings to the end users. Sounds fair and square. But then, if we look into the pic in depth, it is the other way round. it is like issuing a 3G license to digi, but digi do not own it. instead, the gahmen is using 2 limping co to leech away digi's potential revenue from 3G services. in this way, it achieve 3 things. duplicating more jobs, limiting digi's capability to cross subsidy 3G services in the preliminary stage and digi got to know, the game is not equal here. Having said that, i truly respect Digi's Mortel Lundal decision to go alone without the 3G.

As for Mitv and TT, what can they do if Digi do not layan them? knock on Maxis and celcom's door? This is truly malaysian boleh!

Tiredguy,

Thanks for bringing up Wimax ..it's a known open war between the adversaries of WIMAX (Intel) and HSDPA. Who will win is left to be seen but i beleive both will find it's own market. Wimax can reach a far greater audience with intel looking into combining it into PC laptops.

HSDPA is entirely dependant on operator investments. It already takes a huge investment to lay the 3G framework and on top of that you want to put HSDPA? But ..the mobilty and agility u get with HSDPA surpasses wimax ...lets see who wins :) ...but ireckon it'll be an even war!

xweird,
As i have mentioned before, 4G is still a myth and hype. There isnt a rattified standard to suppor this. Etsi/OMA & IETF are still looking at the technological evolution requirement that deem fit to be labelled 4G, so it's still very premature to think of something. I would say just coming up with a framework for 4G is at least 3-5 yrs away.

What is possible is HSDPA & HSUPA, which some call super 3G or 3.5G. U get superfast data speeds, broadband speeds with the same 3G base infrasturcture. Anyhow, if you do find some info on 4G, besides the first page of the google search, i would be glad to learn something new :) .

I think that with this decision, DiGi will focus more strongly in serving its current market base and acquiring new customers using its existing 2.5G.

Look at it this way, when Maxis and Celcom launched their 3G offerings last year, they sort of took their eyes off the ball and DiGi gained strong growth, mostly at their expense.

If one looks at it, 3G has never been a main revenue generator for any telcos (not sure about DoCoMo in Japan, though). I spoke to some friends who is in the handphone business and their estimates are that there are tops 15,000 to 20,000 3G sets in Malaysia only. Going by this, the revenues generated from 3G from Maxis and Celcom must be pretty small indeed.

However, I still feel that DiGi should voice their concerns to the government over this lack of transparency. Raise a ruckus, because if this sort of thing could happen to a company like this, then what hope does the business community here have for a fair and transparent business environment? How would we be perceived in the eyes of foreign investors, especially now with increasing competition from our regional neighbours?

I felt for Maxis when they were dealt with unfairly in Indonesia. Never thought that it would happen here also in Malaysia.

“Dr Lim said all the three applications — from MiTV, TTDotcom and DiGi — met the minimum threshold in terms of technical, financial and managerial capabilities to be awarded the 3G spectrum licence to roll out the services here." What a joke .... Managerial ability ? For a company that's failed to be profitable at any one of its ventures (we know who I'm talking about) . I don't understand , how a company like DiGi , which has weathered all its challenges by continuously innovating and creating new ideas to increase revenue , was left out of this consideration. I hope they never support the license holders as a MVNO , and I hope the license holders suffer from huge outlay and no returns because of poor management. The government has shown once again , in Malaysia , meritocracy does not exist . Tell all the young ones to quit studying and learn how to suck up to people in power . It would be very beneficial .

“Dr Lim said all the three applications — from MiTV, TTDotcom and DiGi — met the minimum threshold in terms of technical, financial and managerial capabilities to be awarded the 3G spectrum licence to roll out the services here." What a joke .... Managerial ability ? For a company that's failed to be profitable at any one of its ventures (we know who I'm talking about) . I don't understand , how a company like DiGi , which has weathered all its challenges by continuously innovating and creating new ideas to increase revenue , was left out of this consideration. I hope they never support the license holders as a MVNO , and I hope the license holders suffer from huge outlay and no returns because of poor management. The government has shown once again , in Malaysia , meritocracy does not exist . Tell all the young ones to quit studying and learn how to suck up to people in power . It would be very beneficial .

Just to add, if you're refering to 4G thats is being talked about by NTT in Japan, it is not based on an ITU ratified standard.

My honest opinion is that a true 4G standard has to be a ratified standard, by the standardisation body such as ITU, Etsi or IETF.

Today, there is field trials with HSDPA showing up to 10Mb. So it's left to be seen if a true 4G is actually just double speeds of HSDPA or more.

Of course one can come up with proprietory standards and overlays to increased speed and call it anything they want :) hahaha ..best place to start is here:

http://en.wikipedia.org/wiki/4G

good luck mate!

DiGi selects Siemens as technology partner
Letter of Intent for 3G investment and roll-out

Shah Alam, 27 January 2006:DiGi Telecommunications Sdn Bhd today signed a Letter of Intent with Siemens Malaysia Sdn Bhd for it to be the provider of equipment and services for the initial phase of the proposed 3G network.
The Letter of Intent covers a multi-million ringgit comprehensive package to upgrade existing network and to supply, install and maintain the proposed 3G network. The total value depends on the outcome of DiGi’s application for 3G spectrum.

DiGi has, as earlier announced, allocated a capital expenditure of between RM800 million and RM900 million for 2006, which includes upgrading existing network and start-up of the proposed 3G network.

DiGi Telecommunications Sdn Bhd Chief Executive Officer Morten Lundal said: “This Letter of Intent is one of the first steps in our preparation for 3G.”

DiGi submitted a strong application containing “an ambitious but realistic and credible case for rolling out 3G”.

Lundal said: “We have a positive mindset and are working quietly but confidently on our plan for a roll-out filled with innovative products and services designed to attract even the most discerning customer.”

He added: “Today, we are providing a very wide range of content services. We want to be able to do more and significantly expand Malaysia’s local content community.”

DiGi started identifying technology partners in support of the government’s call to accelerate the development of 3G. The Malaysian Communications and Multimedia Commission (MCMC) is scheduled to announce a decision by end-February.

Siemens, as the initial provider, will be actively involved in ensuring the successful launch of 3G services in 2006. It will start installing some of the equipment and run tests upon approval from MCMC.

Lundal said DiGi’s application for 3G spectrum is in line with its commitment to contribute significantly to Malaysia’s success in a global environment.

“DiGi will continue to invest significantly in industry development, developing and implementing new and innovative business models, promoting businesses, including SMEs, and human resource development. All this will be further enhanced,” he added.

DiGi pioneered 3G-like services, including wireless high speed multimedia and mobile Internet access using its broadband EDGE network, Malaysia’s Widest HighSpeed Mobile Coverage. This high-speed mobile broadband network will continue to play a significant role for many more years and is being upgraded to complement the proposed 3G network.

Lundal noted a recent survey revealed that many handphone users are still not aware of 3G and a majority of those who know find no compelling reasons to use 3G.

Lundal said: “We look forward to an opportunity to reverse this because DiGi is different. DiGi is innovation developed by a rich pool of local and global talent with the passion for constant evolution. We will continue to introduce many more ‘firsts’. Not just being first but successful too.”

DiGi’s confidence is boosted by parent company Telenor’s decision to locate the Telenor Research and Innovation Centre Asia Pacific in Cyberjaya.

As Telenor’s first research and innovation centre outside Norway, the RM45 million centre will work seamlessly with the Oslo centre to serve as Telenor’s window to Asia and Asia’s window to the world.

Clearly the government had asked Digi to do something that is considered a "norm" in Malaysia but Digi refused. So in order to force Digi to do it, deny them the 3G license and make them to buy license thru another party. Isn't Tun M had said before the corruption in Malaysia is now "above the table"? Now you can really see it happening. Very good example.

All this explains why my office SDSL line hangs up 2 to 3 times a day. They award something to somebody who do not deserve it. The G gave gold to TMnet, but TMnet being a mongkey doesn't know what to do with it. Once he knows what it was, he melt the gold to make a nail. Useless mongkey.

Thay gave #G license to another 2 big apes? I wonder what the 2 Big Ape will do next with the 3G license. Hopefully, they do not mistaken it for an AP.

groo,

As expected, nothing good comes out from you.

While speaking about Msia boleh, you also having the same kind of crap...

Talk is always easy.

geovanni,

if DIGI gets the license and not MiTV and TT, they can't bitch about it isn't it? What do they have to qualify them to bitch?

If you are an experienced senior engineer losing a job as senior engineer in a semiconductor company to a accountant or nasi lemak seller who barely know what's a cleanroom is, YOU BE PISSED!

But groo was right because in Malaysia all this BOLEH happen. Down all the way to form 6 double maths science student who get a 'penternakan' courses in local university.

"Daylight bribery". Yeah, this is the word...

I worry that without an innovative and hugely competitive DIGI, the price of 3G in this country may not fall fast enough for widespread acceptance thus making a key technology wasteful, obsolete and unprofitable.

This may be the ultimate price Malaysians have to pay.

The Ministry and MCMC has been very silent about the whole issue. Why??

Anyway if Malaysia can do this to a foreign company and think they can get away with it, THINK AGAIN.

Telekom and Maxis should not complain if other countries they have invested in subject the same kind of treatment to them. It only serves them right!! As it is Maxis is already in deep shit with their Indon operations.

im supported digi ceo, Morten Lundal... im really shocked when i heard this news... 2 main questions strike my head are the same 2 questions that Morten Lundal asked...

but anyway... i supported Morten Lundal decision... not to be an Alibaba with them... let them bear the price themselve...

malaysia boleh...
malaysia... the juara kampong...

beefstew,

Set the record straight, Digi is no senior engineer and MITV is no nasi-lemak seller. Comon, you got to give better example than this...

Just because Digi is a mobile service provider and you think they can just walk in straight and get the license without any hassle? We don't even know if Digi is meeting all the requirement. Why not they clarify on this?

And BTW, please la... Don't just complain "Msia Boleh" if anything didn't goes toward your favor. Why Msia boleh is also because ppl like you.

Cheers.

pls check out the MITV and TIME facilities first before u doubt on the meeting requirement...

TIME get it because it is direct under government...

MITV... hmmm... pls visit MITV at KL plaza...

malaysia boleh is also because of the ppl like u... "cheers"

You guys know why Digi was turned down ? Blaiming on 'Malaysia Boleh', that's convenient. I heard Digi failed to provide the coverage required by our government after they are in business for so many years, ~8 or 10 years. Why are they so profitable ? They been saving their money for the capital return, don't you think so ? If you are the government, what would you do ? Give them more opportunity to fail you and take your money else where ? If the company's local, ok lah. But they are not one of us !!

dingdong,

Unless you have reports to that effect, i really think that its mere speculation. Figures wise, Digi has increased more on coverage [both voice and data] in the last 2 yrs than the rest. Its all in the name of competition.

Whats so wrong about companies being profitable due to their expertise and efficiency? As an example, Digi has years ago slashed the the retailer's margin on its prepaid topups to the single digit while the other 'sleeping' celco was still giving double digits, until recently! When sales run into billions, go figure what a 1% difference makes!

Oh btw, even though its foreign majority owned, it'll be difficult to bump into any foreigners.

dingdong,

Thats pure speculation. Its not about coverage and it has never been. DiGi is running on the GSM1800 frequency and to cover the equal distance of GSM900 frequency, DiGi needs to spend more.
If coverage is the main criterion for selection of 3G then do you think Mitv or TIME is able to provide that infrastructure within 6 to 12 months? TIME as I understand it doesnt even have a proper business plan in place and they seriously have no clue how to market DATA services as this is pretty obvious with the demise of WEBBIT.
I dare the ministry to show us the bid document to show proof that MITV and TIME won it fair and square.

Acording to DiGi CEO Mr Morten Lundal

Moving on, even faster
------------------------

Not all Fridays are good Fridays, and last Friday was a pretty bad one. The government decided to give out two 3G licenses and none to DiGi.

There are two negative implications. One is that we will unlikely will be able to use 3G as our roadmap for our broadband offerings, and the second and more important: there will now be five network operators in Malaysia.

Now, let me give you my perspective on this. Yes, it would have been best if we had been awarded the spectrum, not because of 3G being important short-term, but because the 3G roadmap going forward is promising. In this I highlight two elements: In the short term, 3G offers consumers very little, if anything at all, beyond EDGE, which is why this decision does not affect our short to mid-term competitiveness. In the long term, the 3G roadmap is promising (i.e. its ability to deliver real broadband speed), but there are several promising emerging wireless technologies that can provide fixed and mobile broadband services equally efficiently, and we will explore these to the fullest. So even though the 3G door might look closed, other doors will open and we will explore them with even more fervor and dedication.

The other aspect is that there will now be two new network players. That's actually more serious, both for us and the other mobile providers. Malaysia today enjoys a rare balance of high penetration, wide coverage, fast paced innovation and low user prices. How the government can believe that Malaysian consumers will benefit from five network operators is hard to understand. Even in bigger countries, they are expecting to have very few network operators when in the future even bigger investments and commitments are needed. 5 players (in addition to numerous MVNOs) who compete on price for voice will not take the country fast forward towards the next generation mobile services. However, that fight is about competitiveness, and that is a fight we are very prepared for. If anything, we are going to be even more aggressive in the market now going forward.

DiGi is a very dynamic company and we are used to change. We will use all our abilities to thrive in this new landscape. This will require all our best resources, and everyone should feel mobilized to deliver our very best.

I am actually looking forward to the exciting times ahead. Friday was maybe not the best day, but I have rarely looked so forward to come to work as I did this Monday. I spent the whole weekend answering supporting SMS and phone calls, in addition to look forward to today, where I will start pushing us all for showing the market what DiGi can do when we are at our best. Let's show all Malaysians who "the smarter choice" really is.

Time To Change!
I totally agreed with Morten. You are the best.

kanazai2001,

Don't spray around just like this. If got more fact about Digi performance index, you can enlighten us here. If you feel that there is any wrong-doin, let's go to BPR. Anyway, no one is above the law right?

Just want to make a point, what can you achieve by saying M'sia Boleh? Everyone knows that M'sia Boleh! Bcause of ppl like, I wudn't say "you" this time, maybe because of ppl like us! Talk is cheap and easy all you need is a typekey.

kanazai2001 boleh!

BTW, there is a lot of Digi's staff here. Share with us your KPI for your mobile coverage. Thanks.

Cheeers.

So what's MiTV and Times performance index as compare to DIGI? Oh, as in as a service provider for mobile coverage.

Going to BPR? No one is above the law? I don't about that, man...haha.

Oh, if there is MiTV and Times staff here, pls share with us your KPI for your mobile coverage. You know mobile coverage? Sure you guys know. You have one don't you?

geovanni, you orang Time keh? Or MiTV? or Vicent Tan's relative ah? Why so sensitive one?

Anyway, the topic of discussion here is that most people here cannot understand why companies like DIGI are passed over by MCMC who favors upstarts like MiTV and less than stellar incumbents like Time.

If MITV has a fantastic product (have you even seen the quality of the video?), creative marketing (seen any ads?), technically strong (took them a looonggg time to get their system up) or strong subcriber base (hands up all you MITV subscribers? Hello?), then we can understand.

If Time has a stellar 3G business plan (plan? heard any statements from anyone there?), strong consumer brand (Adam? Time? 017, opps, that's Maxis'!) or base stations (opps, those are Maxis' too!), then we can understand.

But both companies do not have those things- which is why most of us cannot understand why.

Perhaps, if MCMC or the Minister were to issue a statement on why they made the decision that they had made, all doubts will be cleared.

Sick Dog,

You have your point up there. But what you didn't hear doesn't mean the thing is not there. You know what you know.

But, no point speculate me orang time or mitv.

If you think you can contribute other than whining, most welcome.

If cannot, I have 2 words for you: Sick Dog Boleh!

:)

No hard feeling.. Cheers.

But one thing, end of the day, Digi will get the license...
:P

geovanni, care to share the facts why digi will get the license?????

Share facts? I thought everyone has been trying to justified the reason why Digi should get the license? :)

Digi's position as the mobile operator seems to justify the award of 3G license. It is amazement to many why they didn't get it and maybe MCMC or the ministry will provide better clarification on this.

But still, end of the day, Telenor will get the 3G license for Digi or somebody will. Yet, many things can happen in Msia when the government decide to change the regulation.

If we were to say that Digi is having the correct infra etc, actually right now 3 operators are sharing most of the infra together. The mode of sharing is a bit complicated as it's hard to define who owns the site as 3 operator is occupying and sharing the cost. Maybe someone from the operator can enlighten us here.

And I think everyone is aware that right now some state-backed companies will be providing infra to the 3 operators, i.e. they will build the tower and 3 operators will share the infra. So, who owns the infra will be another question in this. The most appropiate is currently the 3 operator is the only driving force in terms of getting new equipments and continuing in upgrading the coverage or capacity.

So maybe we should just see when MCMC can respond to Digi. If we can't wait, do something instead of blurting 'M B!'

dingdong, you may be right. I heard of Digi not complying with the requirement and the government is not happy about it.

anyone heard of the departure of key management in Digi ?

man101, you are right to certain extend. But if you are the government, this telco had ignore your urge to comply for so many years. Will you still reward them with the new license. On the other hand, though you're not sure if the new guys would cooperate, will you take your chance ? I'm not sure what the government' big plan is, but if it's for the national interest, I'll support them though. Mind you, I'm a digi user too !

sharing the infrastructure?! HAHHAAA... u r funny...

why maxis bought over TIME at the first place?! it because of TIME fibre optic backbone... if they do share their infrastructure, then why we only have streamyx at landline?!

sharing the RTX towers is only with certain circumstances... there is a few newly built RTX towers alone the SILK, north-south highways... those towers r built just side by side next to each other... a very good example of resources sharing...

MCMC... "Money Come Money Come"...

yes... MY boleh... bolehland sure everything is boleh... i learnt this from the "Boleh" Nasional party... "cakap je... mau bikin kar?"... and also... "cakap tak serupa bikin!"... so "CHEERS!!!"...

A rumous... this is yet to be confirm... digi has removed all it 3G demo equipment at klang valley last monday, 06/03/06... causing their network down for whole day... they set it up to do a demo for the 3G judges...

kanazai2001,

You only name fiber, as Maxis do offer fixed network. We are talking about mobile. So Digi got fiber or not?

BTW, what you mean sharing tower is only few circumstances? Now it's a must! And the state-backed companies will built for you! Now Maxis and Celcom will come and share with existing Digi's site. So? How you consider the ownership?

Besides giving nicknames to other, what else you can do? :)

Dingdong,

Thanks for letting us know that in fact, Digi fails several requirement. Somemore it is the crucial one! At least to the goverment and not us user.

Cheers.

Hi all,
FYI, this is nothing to do with DiGi complying with the requirement or not. This is because DiGi is not a Malaysian company. And i believe all of you knw why the two others get the license. DiGi is ask to partnership with them.

Digi,

So is this an official statement from Digi?

I wonder when you say Digi is not a Malaysia company, does it also mean that this is one of the regulation which not met by Digi? :)

Rules is rules la...

Cheers.

in most cases the concept of an MVNO is used primarily as a "parasitic" method,whish basically means that "some g-backed co's" get richer from doing next to nothing.this whole fiasco will also cause a lot of FDI's to be re-evaluated. Digi should just sit back and watch the events unfold over the next few weeks.
cheers,

http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_d2be009c-cb73c03a-1f47ae80-a4fbcb20

Corporate: DiGi denied 3G
By Cindy Yeap

That "greenfield" players — Time dotCom Bhd and MiTV Corp Sdn Bhd — won Malaysia's remaining two 3G (third generation) spectrum blocks is unprecedented.
Shocked by the news that came about noon last Friday, investors sent shares of Malaysia's third mobile operator DiGi.Com Bhd down 10.3% in afternoon trade, its biggest one-day fall in five years. The counter lost 90 sen to close at RM7.85.
"We are surprised by this decision... the market was assuming that DiGi, known as a product innovator, would be awarded a licence," says UBS Investment Research analyst Syed Razif Al-Idid.
Another senior telecoms analyst concurs: "The market, including us, believed that DiGi was a sure winner, given its track record and financial standing." Hence, DiGi's share price dip was no surprise.
"The setback for DiGi is not operational... operation-wise, DiGi is still strong. The impact is more an immediate negative effect on its share price, which had had a good run recently. There will be some price weakness," says another analyst.
Minister of Energy, Water and Communications Datuk Seri Dr Lim Keng Yaik issued a press statement last Friday naming the two winners. Lim said the decision to choose the two winners was based on commendations from the Malaysian Communications and Multimedia Commission (MCMC) and the ministry's officials.
It is learnt that in making its decision, the government had wanted to maximise the value of its national asset, namely the 3G spectrum, by granting the licences to local companies. The view is that foreigners can still participate in 3G by partnering with the local players. Also, since the licences were given at cheap prices of only RM52 million, the government decided that the local players should get priority, on condition that they met all criteria.
"To achieve a win-win situation, the successful applicants have been directed to work with DiGi and other service providers as a mobile virtual network operator [MVNO]," the minister's statement added.

DiGi's reaction
But DiGi does not seem keen on being an MVNO, which essentially means it needs to lease airtime from rivals.
"We [DiGi] will very unlikely be a service provider on their [TTdotCom and MiTV's 3G] network. They will have to find other customers to recoup their investment," DiGi's chief executive Morten Lundal tells The Edge in a phone interview.
He declined to say if DiGi would also not buy 3G airtime from existing spectrum holders Telekom Malaysia Bhd and Maxis Communications Bhd. Instead, Lundal says DiGi will continue to offer mobile broadband services using EDGE (Enhanced Data rates for GSM Evolution) and consider any other relevant technologies to offer mobile data services.
"3G is not the only option [for mobile broadband]," says Lundal. DiGi is seeking official clarification from the ministry regarding the 3G awards.
"We're extremely surprised by the news in two ways. First, that the Malaysian government believes two non-mobile operators can use the 3G spectrum more effectively than DiGi. That is hard for us to understand.
"Secondly, that Malaysia believes the market can support five players, which is a reverse from its previous strategy that led to the consolidation of mobile operators [from eight to five to the current three]. It is also a reverse from the trend in the rest of the world [where consolidation happens as themarket matures]," says Lundal.
On a brighter note, Lundal expects earnings for fiscal 2006 to come in "even better" due to smaller capital expenditure (capex). DiGi previously said about 20% of its RM800 million to RM900 million capex this year would be for 3G.

Boost for MiTV, Time dotCom
All three applicants in the latest 3G tender met the required minimum threshold in terms of technical, financial and managerial capabilities, the minister said in his statement.
MiTV's executive director Kenneth Chang, who oversees the company's 3G strategy, is simply delighted at the news.
"I believe that being a Malaysian company was one important factor that led to the government's choice... We are grateful that the government had taken that into account when considering the applications," Chang tells The Edge.
MiTV plans to spend between RM1 billion and RM1.5 billion on 3G capex through 2009, which would give it 80% coverage of the country, Chang says. He also says MiTV will be able to roll out 3G services in the Klang Valley, at least on a trial basis, by year-end. This is thanks to it being able to leverage on MiTV's existing infrastructure.
The country's second pay-TV operator will fund its 3G expansion through a combination of shareholder advances, banking facilities, equipment leases and even the capital market, although it is "way too early" to speak of listing MiTV now, Chang says.
Keeping MiTV's 3G game plan close to his chest, Chang says the company is confident in being able to make an impact on the Malaysian market, banking on the understanding its key people and owners have of the industry.
Chang says MiTV sees a lot of potential in becoming a mobile service provider in the country and is attracted to the industry based on the attractive earnings before interest, tax, depreciation and amortisation (Ebitda) margins that the other three players enjoy.
On the other hand, a Time dotCom spokesperson declined comment pending the receipt of an official notification. Its shares surged 18 sen or 38.3% to 65 sen last Friday, on heavy trade of over 80.3 million shares. It last saw a similar one-day gain in that quantum in June last year when major shareholder Khazanah Nasional Bhd-controlled Time Engineering Bhd said they are "seriously" looking to restructure the company.

Near-term impact
Meanwhile, Telekom and Maxis shares also ended lower last Friday, owing in part to the surprise of having two new rivals instead of one. With their 3G licences, the two new entrants will be able to offer mobile phone services.
One investment bank-backed brokerage on Friday afternoon told clients that it is looking to further cut price targets for all the three large players due to "higher than expected risk and competition" ahead.
But not all analysts take this view.
"I don't think this is the end for DiGi," says UBS' Syed Razif. While acknowledging 3G as a potential growth driver, analysts, he says, have not factored in any earnings contribution from 3G for the telcos. This is due to poor take-up rate for 3G services in Asia so far.
Greenfield players are also seen as lesser competition to 3G incumbents Telekom and Maxis compared to DiGi, which has been stealing market share from both its larger rivals. DiGi's market share for both revenue and subscriber base rose by around 2.5 percentage points last year from the year before.
"There is no change in the 3G duopoly status as the two new players would take a longer time [than DiGi] to roll out services," says one analyst.
While it is possible for new entrants to erode mobile operators' margins with further price cuts, it is the discounts by the mobile operators that have been more painful for discounted call providers like Time dotCom, REDtone International Bhd and NasionCom Bhd thus far.
It remains to be seen whether the two winners can change this, but already speculation on possible suitors has begun.

Minister of Energy, Water and Communications Datuk Seri Dr Lim Keng Yaik issued a press statement last Friday naming the two winners. Lim said the decision to choose the two winners was based on commendations from the Malaysian Communications and Multimedia Commission (MCMC) and the ministry's officials.
It is learnt that in making its decision, the government had wanted to maximise the value of its national asset, namely the 3G spectrum, by granting the licences to local companies. The view is that foreigners can still participate in 3G by partnering with the local players. Also, since the licences were given at cheap prices of only RM52 million, the government decided that the local players should get priority, on condition that they met all criteria.
"To achieve a win-win situation, the successful applicants have been directed to work with DiGi and other service providers as a mobile virtual network operator [MVNO]," the minister's statement added.

07-03-2006: DiGi keeps mission despite unsuccessful 3G bid

DiGi.Com Bhd will continue to explore all options to be the "most exciting mobile broadband provider" in Malaysia after its unsuccessful bid for a 3G spectrum licence.

In a statement on March 7, DiGi said its subsidiary DiGi Telecommunications Sdn Bhd had received a letter from the Malaysian Communications and Multimedia Commission informing that the company had not been successful in its application.

"DiGi is and will continue to explore all options to the fullest in order to deliver on its commitment to be the most exciting mobile broadband provider in Malaysia," it said.

On March 3, MiTV Corporation Sdn Bhd and Time dotCom were named the winners of the remaining two 3G spectrum licences.

DiGi is asked to partnership with them (MiTV or TIME) = promoting alibaba company style... not gonna work for foreign/international company...

MUST SHARE the RTX towers... why got so many newly built towers just side by side next to each other?! hmmm... very good resources planing and sharing...

"ooi~ u got fibre or not?!"
"what fibre u want? we got fibre carbon, fibre food, fibre east, fibre west, fibre this, fibre that, fibre stick also got..."
"o... o... ok... u got fix line or not?!"
"o... what fix line u want? we got fix this line, fix that line, fix ur line, fix his line, fix her line, fix on line, fix off line also got... pls call 0162211800 for more info..."
"ooi~ u mean u dont know ah?!"
"i'mmmm... of coz... im kanazai..."

digi failed in several req... (1):
"3G lisences are to give to local company only!!!" The Edge Daily 06-03-2006: DiGi surprised but unfazed by 3G loss http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_c990fe3d-cb73c03a-886ad000-ec96015d

digi failed in several req... (2):
did MiTV and TIME set up their 3G demo sites?! or MiTV demo it with their UHF digital broadcast TV set? or TIME with their wifi laptop to make a skype call? "over over... r u copied?!... over... e.e.e.e...r.r..r... halo halo... can u hear me?!"

digi failed in several req... (3):
what else?!? hmmm... anyone got the inside story?!

http://www.mitv.com.my/portal/faq.asp
General Information:
Question:
2. Will I be able to get Internet access from MiTV?
Answer:
2. NO.MiTV is not an Internet Service Provider and does not provide internet access/connection.

so... near future after 3G implemented:
video call ur friends... switch on ur home TV, digital decoder and UHF TV antenna... if u r outside... bring these equipment along... just joking...

digi failed in several req... (1): "3G lisences are to give to local company only!!!"

i guess u r right... or maybe i have a bad english... did this stated in the requirement / during the bidding?! if so, why digi still qualify to enter the bid? or this only came out from the mouth of uncle enery, watery and communication after issued the licenses? didnt he mention it is the G decision not to give the license to digi cause it is too cheap, should squeeze more $$$ from the foreigner?! --- The Edge Daily 06-03-2006: DiGi surprised but unfazed by 3G loss http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_c990fe3d-cb73c03a-886ad000-ec96015d

http://business-times.asia1.com.sg/sub/news/story/0,4574,188231,00.html?

KL's 3G awards raise transparency issue

By S JAYASANKARAN IN KUALA LUMPUR
Published March 7, 2006

THE Malaysian government's award of third-generation (3G) mobile phone
licences to two relatively untested telcos - to the exclusion of established
player DiGi.Com - has raised questions about the process and its
transparency.
______________________________________

Mr Lundal: Surprised by Digi.com's exclusion, the telco
is seeking clarification from the government
______________________________________

The two 3G winners are pay-TV operator MiTV Corp and TT Dotcom, a unit of
broadband telco TIMEdotCom.

MiTV is 40 per cent owned by influential tycoon Vincent Tan, who controls
the sprawling, multi-billion ringgit Berjaya group.

And TT Dotcom is even more connected. The TIME group is ultimately
controlled by the Malaysian government's investment arm Khazanah Nasional.

MiTV has a less than impressive mobile phone subscriber base so far, while
TIME has a patchy track record, having sold its mobile business to Maxis
Communications, Malaysia's biggest cellular phone company, three years ago.

The latest 3G awards are the second by Malaysia. The first took place three
years ago, when the winners were Maxis and state-owned Celcom - the only two
that bid.

DiGi, a mobile phone operator with an excellent record and strong
financials, stayed out of the earlier race.

With the price of a licence having gone up slightly this time around, to
RM55 million (S$24 million) from RM50 million, analysts had expected the
winners to be DiGi and another company - probably TIME given its state
connection.

But the outcome has surprised many - not least Digi, which is majority
controlled by Norway's Telenor group.

Ironically, Berjaya's Mr Tan started DiGi but has whittled his interest down
to 4 per cent, with Telenor holding about 61 per cent.

'The fact that less-qualified groups beat out DiGi is mind boggling,' says
Tan Teng Boo, an investment adviser who likes the stock. 'From a policy
perspective, you have to conclude that the bad old days are back.'

A foreign institutional sales manager was equally blunt. 'It reminds me of
the time in the early 1990s when mobile licences were issued and Malaysia
ended up with eight,' he told BT. 'They had to be bought out and the
consolidation was messy and very, very expensive.'

DiGi is not taking its loss lying down. The company, whose stock slid more
than 10 per cent on Friday, said in a statement yesterday that it has yet to
receive official communication on the matter.

'We would be extremely surprised by such a decision if this is confirmed,
and we will immediately seek clarification from the (government),' DiGi
chief executive Morten Lundal said in the statement.

In a conference call to analysts yesterday, DiGi went further. It said it
plans to seek clarity from the government 'on how the decision' was made.
The company also told analysts it is 'too early' to say if it will consider
buying out either of the two winners.

Transparency issues aside, the licence awards effectively raise the number
of mobile phone companies in Malaysia from three to five.

Over the longer term, this is likely to intensify competition in a market
that is approaching saturation - a near-80 per cent penetration rate versus
about 20 per cent in Thailand and Indonesia.

It is unclear what TIME will do with its 3G licence, although it is expected
to tie up with a foreign partner. MiTV's plans are clearer - it is expected
to spend RM1 billion over three years on infrastructure, and then hopes to
sell capacity to providers without networks of their own.

Indeed, MiTV has already signed provisional agreements with discounted call
providers Redtone and Nasion.com and direct sales company Cosway.

Whether this will generate further interest remains to be seen, as two of
the three companies at least - Nasion.com and Cosway - are linked to
Berjaya's Mr Tan.

Some observers reckon the whole 3G exercise is much ado about nothing. 'It
reminds me of the early days of the dotcom bubble when there wasn't any
first-mover advantage,' says fund manager Mr Tan. 'It's not going to take
root here for at least five years, so when DiGi dropped on Friday, I bought
some more.'

He may be right: DiGi's stock rebounded 3 per cent to close at RM8.20
yesterday.
____