Posted on Friday, 3rd March 2006 by editor
In what must be one of the bigest shock MCMC has produced to date, DiGi has been denied a 3G license.
Instead the MCMC has awarded 3G licenses to MiTV Corporation and TTDotcom. To put it all in relevance, you should know that both TTDotcom and MITV are not operating cellular networks at the moment. DiGi has been asked to work with these two companies as an MVNO.
Personally, I find this decision hard to understand. And the stock market is finding it hard to digest too. As I write, DiGi is down 90 sen and is today’s biggest loser. Nasioncom (linked to MITV) and TTDotcom are up 6 sen and 16 sen respectively.
Here’s how Bernama quotes the Minister – “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.
If that is so, why wasn’t DiGi given the license? If it has to work with MITV or TTDotcom, operating costs will be higher than Celcom and Maxis. As any property owner will tell you, ‘renting ‘ is always more expensive than owning. DiGi would have difficulty competing with Maxis and Celcom.
It’s hard to say what will happen now. There are many unresolved issues.
Telenor is holding a majority stake in DiGi and they have to sell their stake down if the SC does not give them special permission to continue holding the stake. Malaysian regulations do not allow foreign companies to hold a majority stake in our telcos. Telenor was given special permission but are supposed to cut down the stake this year. They have asked for an extension but I dare not venture to guess.
Will Telenow exit completely? Or will DiGi buy up TTDotcom? TTDotcom is for sale last I heard.
Hmm…possibilities, possibilities.
Posted in Telcos | Comments (16)
March 3rd, 2006 at 8:53 pm
Noooo…. im dissapointed… And now Telenor is facing a dilemma with the MCMC laws… really tough. Things are sure to change soon. *sigh*
If digi doesnt have 3G, im sure it will be left behind and cant compete with the advanced 3G market although they are the value telco.
March 4th, 2006 at 6:02 pm
Unfair… and they just doing business, making big money from the shares and sort of! This bolehland is playing with fire, if they do not know what those investment from other countries means?
I could get the idea from here(thanks!), that… possibilities, possibilities… buy then sell? sell then buy back? Are they gambling anyway?
March 5th, 2006 at 7:16 am
wait……………. so long………………..
wait……………. 4g loh…………………
maybe………….. wimax!!!
March 15th, 2006 at 12:32 pm
It was an unfair decision with reasons not suitable to be mentioned in the Malaysian context. Having Digi as a 3G operator would have given a more fair competition to the other 2 telcos. Digi could have even taught us a lesson in execution.
August 3rd, 2006 at 6:09 pm
[...] Digi Loses 3G License in Malaysia That is how unpredictable Malaysia can be. How could a telco with more than 3M subscribers loses out to 2 smaller telcos with no significant contribution to the telecommunications industry in Malaysia? Yep, Digi did indeed lose out to TimeDotCom and MiTV. Reasons not being stated properly but one would be fast to judge that it could only be political. But don’t jump your guns just yet. Having TimeDotCom get the license would only push Timedotcom to merge with Jaring to build another broadband giant. Can they do it despite talks that have lasted for years? Well, how would it be if this indeed happen? It would definitely benefit us in terms of allowing seamless broadband access on Internet and mobile, from IP to 3G on GSM. Thus, you will only be paying a fraction of the amount you are paying now to use 3G but a higher amount to use broadband which is fair considering you can switch to 3G when you only have access to mobile. How far can Malaysia go in this remains to be seen? MiTV got the deal mainly because this would allow a bigger push into the Mobile TV arena which could benefit Malaysians. MiTV already have the contents, they just need the bandwidth to provide this service. How they are to do it with limited knowledge in the telecommunications sector remain a doubt. Well, to have Digi share the bandwidth with these other 2 telcos as an MVNO would definitely be a laughing stock though. Is it time for Telenor to exit? Would they have got the deal if they did? If Malaysia is to ever progress and keep up with competition, situations like this clearly should not happen. Despite the rational reasons given, awarding the license to Digi could have taught Malaysians a lesson in fast and proper execution. Not to say the other 2 telcos who already have the license are not doing it well but competition from Digi could have pushed Malaysian to think harder, work smarter, execute faster. [...]
September 19th, 2007 at 9:22 pm
DIGi must hav 3G…Dont Let us wait so long…
September 27th, 2007 at 9:12 am
sigh~~
October 11th, 2007 at 3:34 pm
dear digi,
as we know business in malaysia boleh normally involve unforseen decision. from what i understand malaysia boleh will never allow any foreign co hold more than 50% share. coz almost all license given by govt will only goes to local majority holder. reason – for malaysian security………..behind it
November 14th, 2007 at 8:53 pm
finally DiGi has merge with TDC to get 3G license.It believe to launch by next year 2008.What a surprise!!
April 18th, 2008 at 3:10 pm
I think this is a conspiracy to left Digi behind 3G without prevent them to 3G. I believe DG got a lot of source & technology to give maxis and celcom a competition. I love Digi because of them, other telcos need to cut down their price dramatically. Thanks Digi! I wish you can get the 3G soon. MiTV Got 3G, but what is their service to us? License for nothing? MCMC? I think something wrong with you!
May 16th, 2008 at 12:01 am
why !! digi no have 3G yet!
September 15th, 2008 at 9:17 pm
i need 3G … what a shame … huh!
September 17th, 2008 at 6:16 pm
so sad..my nokia 6288 and nokia n93i have 3G but Still need a 3G line…Digi is my choice coz its cheap but ill wait for Digi to have Digi 3G…
November 4th, 2008 at 5:49 pm
I disapointed with those who said dat we should unlimit the foreign shareholder.unlimiting it will result more malaysian ringgit flow to oversea,thus shaking our economy itself…meaning when the malaysian dont hold our money itself,the inflasion will raise,but then we dont have money to circulise,resulting in economic disaster,maybe worse then 1998…think,before u talk cheap…
November 28th, 2008 at 2:00 pm
Good news,what i heard that DIGI will launch 3G at the end of 2008 or early 2009. i hope what i heard is true after waiting sooooooooo looooooooooooong……
November 28th, 2008 at 4:20 pm
Hi rod and all,
rod – what u heard is true.
Digi is actually currently implementing 3G services nationwide and company H is also involves in telco/network. Sorry. I can’t disclose out too many info here.
Will be launching soon after multiple testing and UAT… Hang on…
I dun even bother to subscribe to M/C broadband as I am waiting to get myself Digi 3G in this coming few months…