Three WiMAX firms warned

http://biz.thestar.com.my/news/story.asp?file=/2009/7/31/business/20090731084142&sec=business
KUALA LUMPUR: The three companies holding WiMAX licences that have yet to roll out their services nationwide have been warned they risk losing their licences.

Information, Communication and Culture Minister Datuk Seri Dr Rais Yatim said yesterday the Government had the right to revoke their licences if the companies did not roll out their services by year-end, especially to Sabah and Sarawak.

The terms of their licences required it, he noted.

“They have to show proof why their licences should not be revoked by end of the year if they do not fulfil their responsibility as required by their licences,” he said after the 1Malaysia Seminar here on Thursday.

Rais said he had instru cted industry regulator, the Malaysian Communications and Multimedia Commission, to look into the issue and review the licences of the three companies.

But the three p layers told Star Biz they had been following the rules and saw no reason for their licences to be revoked.

Four companies were in 2007 awarded the 2.3GHz spectrum, allowing them to offer wireless broadband services using WiMAX technology.

The four are Packet One Networks (M) Sdn Bhd, REDtone International Bhd, YTL e-Solutions Bhd and Asiaspace Dotcom Sdn Bhd.

The Government has set a target to have 50% national broadband penetration rate in the country by end-2010 and Rais’ concern is understandable as without full participation of the players, be it WiMAX, fixed and cellular, the 50% penetration rate will not be achievable.

It stands at 25% currently.

Packet One has the widest roll-out while REDtone offers services in parts of Kota Kinabalu and Kuching, and Asiaspace has 70 to 80 locations covered in the Klang Valley.

The only company yet to roll out services on WiMAX platform is YTL e-Solutions but its director Datuk Yeoh Seok Hong said “we will be ahead of our target to cover 50% of the population by July 1 next year.’’

While YTL e-Solutions is the latecomer in terms o f roll-out, Yeoh said it was working with Samsung, Clearwire and Cisco for a nationwide rollout on July 1, 2010.

REDtone is the only company with the WiMAX licence to cover Sabah and Sarawak.

“We have done our part and will do our best. We are committed to the national broadband agenda and apart from the interest of business we also recognise this as an important national service. The cost of rolling out services in Sabah and Sarawak in our experience is two to three times more than rolling it out in Peninsular Malaysia; that is why we see it as doing national service.

“Our service is available in parts of Kota Kinabalu and Kuching and we have plans t o cover more towns,’’ said group chief executive officer Zainal Amanshah.

Asiaspace chairman Datuk Abdul Ghani said the company had fully covered 25% o f the population required of it this year.

“We have acquired 138 base station sites, of which 61 are ‘on air.’

“We are waiting to install the remaining 77 as we have not got approvals from the local authorities, owners of land and buildings, and all that is a tedious process,” Ghani said.