Malaysian Wimax Licence Holders Urged To Form Consortium To Share Infrastructure Costs

July 27
The four Malaysian WiMax licence holders should be mindful of the hefty cost to build the infrastructure to roll out the wireless broadband network if they decided to do it alone.

Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik, in stating this, said the cost to build the WiMax facilities could reach up to RM2 billion.

"If they are building it alone, they may be bankrupt before they start rolling out services," he said at the launch of the made-in-Malaysia PDA phone here Friday.

WiMax refers to Wireless Interoperability for Microwave Access which will allow super high-speed Internet access and file downloads from phones, laptops and mobile devices over greater distances.

Dr Lim said he had held discussions with the WiMax licence holders twice on the formation of a consortium to build and share the cost of transmitter towers.

"I told them not to compete on infrastructure superiority but compete on service branding and cost superiority," he said.

Asked when the companies would be rolling out WiMax services, Dr Lim said: "I think by the middle of next year."

"If they agree to form a consortium owned by them to build the infrastructure, then they have to go for tenders and decide on the best vendor to provide seamless connectivity," he said.

Dr Lim said a broadband explosion was expected in the country in next two years, bringing changes to how people live, work and play.

"The ministry will try to set up more towers around the country in order to provide better connectivity," he said.

"In urban areas people will have to accept the towers located next door based on our guidelines as there is no scientific proof that the airwaves are harmful," he added.

-- BERNAMA