Who burst the WiMax bubbles?
It was an about-turn decision that didn't make the Energy, Water and Comnmunications Minister Dr Lim Keng Yaik look good.
Yesterday, momentarily before the close of the tender process for the 2.3 GHz to 2.4 GHz spectrum band for use to implement Broadband Wireless Access (BWA) systems -- known in layman's term as 'WiMax, or or Wireless Interoperability for Microwave Access -- the Minister dropped a bomb-shell by announcing that the tender process had been cancelled, putting the blame squarely on industry regulator, MCMC, for non-compliance to the Ministry's policies.
While known bidders -- they include DiGi, RedTone International and NasionComm Holdings -- were all literally caught with their pants down, the industry is abuzz with speculation that an interested party, which failed to meet the tender deadline, had lobbied for the tender process to be stalled.
The big boys -- TM and Maxis -- are expected to put in their bid to hedge their prospects, however, Little Birds in the industry had tipped off Screenshots by saying that the spoiler that derailed the tender process could have come from a small NFP/NSP licensee.
The Little Birds also said what made the Minister 'look stupid', and the MCMC ridiculously embarrassed, was that the tender process had been in motion for at least four months and nobody cried foul until minutes before noon, yesterday.
The simple question being tossed around was that: Why can't the Communication Ministry communicate properly among themselves in the last four months, and give us this last minute caper?
Tender process
According to public domain knowledge, MCMC had opened the tender process for the WiMax spectrum on May 16, 2006, under the document titled: Applicant Information Package (AIP) No. 1 of 2006.
The May 16 was to inform interested parties -- whose pre-requisites must be existing Network facilities Provider (NFP) and Network Services Provider (NSP) licensees accorded under the Communications and Multimedia Act 1998 -- that the AIP No 1 of 2006 on apparatus assignment in the 2300MHz to 2400MHz spectrum band for use to implement Broadband Wireless Access (BWA) systems will be open from May 16 through noon, July 18, 2006.
Prior to that, on March 10, 2006, the MCMC had published a Standard Radio System Plan (SRSP) document, titled Requirements for Broadband Wireless Access (BWA) Operating in the Frequency Band from 2300 Mhz to 2400 Mhz (MCMC SRSP 532 BWA), to keep the industry posted on the pending tender process.
Subsequently, the MCMC followed through by publishing a Marketing Plan for the relevant apparatus assignment, a mandatory process under Regulation 21(2)(b) of the Communications and Multimedia (Spectrum) Regulations 2000.
The Marketing Plan was duly published on April 10 to gather public comments.The cut-off date was May 25, 2006.
After gathering the public comments, which came mainly from industry players who are NFP/NSPlicensees, the AIP dated May 16, or generally regarded as the WiFax tender paper, was issued, and the tender process set in motion.
In a nutshell, the MCMC has opened up 100 Mhz of the 2.3Ghz to 2.4Ghz spectrum into twenty 5Mhz blocks. Each successful bidder is expected to be allocated a group of six blocks.
With a total of 100Mhz being made available for WiMax, and with each bidder getting 6 x 5Mhz blocks, it would mean only three bidders would be successful in the tender process.
The three successful bidders are expected to offer the Broadband Wireless Service in each geographical area where coverage is provided. There are 13 georgraphical areas nationwide.
Apart from the filled forms and hard copy ofthe tender paper, every bidder was required to submit a soft copy in CD-ROM to the tender board.
MCMC to clarify
Screenshots understands that DiGi, RedTone and NasionComm had sumbitted their tender papers precisely before noon yesterday, and all were caught by total surprise on hearing of the cancellation of the tender process.
Screenshots has also been told that the MCMC would issue a statement pertaining to the issue later today.
Comments
Last minute submission of tender. They are protecting the tender information from being leaked or exploited.
JEFF OOI SAYS: That, too, might not be foul-proof. No?
Posted by: mlkview![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 19, 2006 11:33 AM
mlkview,
It's normal that players DO NOT submit their tenders untill the day it's due. It could be to avoid leak of info or other confidential matters that will benefit the opponent.
This is a normal practise. Many try to make it JIT (Just in time, perhaps with an hour or 2 to spare)
Some paranoid ones do all sorts of things, to make sure it arrive Just in time no matter what happens but never too early.
To give you short story, recently many global player submitted theit tenders to fight for the 3rd lciense in Egypt. One of the international bidders who also happent operate in our country, had Multiple copies in multiple cars, each taking different routes towards the destination, to make sure if one kena sangkut in traffic, the other willr each safe. there was also another that wrapped the carton of binders with silver casing, with egytian carvings!
Its amazing to note here how much ppl strategise how to submit a tender. And from my little experiance seing large scale telco tenders, rarely is it submitted any earlier then they day it's required to be submitted :)
But this is embarasssing, after 4 months, the tender is axed at the elevnth hour!
BTW Jeff,
Ethisalat beat Telenor to it, paying a hefty 2.9B USD to get into the land of the pharoahs!
JEFF OOI says: Thanks for the heads-up, Goks.
Posted by: goks![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 19, 2006 01:17 PM
Thank you to goks for the informative post
Posted by: Steve![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 19, 2006 01:57 PM
Jeff,
Heard the spoiler is YTL who made a call to Keng Yaik. YTL is not an existing NFP/NSP
Posted by: zagato![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 24, 2006 11:23 AM