DiGi cut out of Malaysian 3G network market

Pay television provider MiTV and fixed line operator Time dotCom have emerged as the winners of two new 3G operating permits in Malaysia, leaving national 2G provider DiGi Telecommunications out of the future infrastructure market. In a statement earlier this week the Malaysian Ministry of Energy, Water and Communications said that MiTV and Time dotCom had beaten out DiGi in a hard-fought auction, although it gave no details of why DiGi had failed.~ ~ In statements since the announcement, DiGi said that it had applied to the government for more information on the decision and would continue to explore options for developing a next-generation business.

Having developed a nationwide EDGE network and earlier expressed no inclination to invest any further, DiGi had been keen to take the step up to compete with existing 3G operators Maxis Communications and Celcom at the infrastructure level.~ ~ According to spectrum allocation rules however, DiGi will be able to use any network built by MiTV or Time dotcom under an MVNO arrangement. A government statement said this week, "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." ~ ~ DiGi`s statement said, "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." ~