After much anticipation over whether it would happen, the Malaysian
Communications and Multimedia Commission awarded licenses in
frequencies between 2.3 and 2.4GHz broadband wireless access spectrum
to four out of 17 bidders for what’s being called “WiMAX licenses.
Bizsurf, associated with YTL E-Solutions Bhd; MIB Comm Sdn Bhd (now
renamed Packet One Networks), a Green Packet subsidiary and Asiaspace
Dotcom, owned by Abdul Ghani Abdullah each received separate blocks of
30MHz in that 100MHz band to operate services in Peninsular Malaysia,
while Redtone's CNX Broadband owned by Redtone International got 25MHz to
provide coverage in Sabah and Sarawak.
The two current WiMAX variants are fixed WiMAX which serves users at
one location or stationary users at different places and mobile WiMAX
which supports handoff between base stations just like mobile phones;
hence its suitability for users on the move.
WiMAX is short for Wireless interoperability for Microwave Access, a
standards-based technology for providing last mile wireless broadband
access as an alternative to wired broadband like cable and DSL
Development of the technology and interoperability between different vendor's WiMAX equipment is governed by the WiMAX Forum (www.wimaxforum.org).
The 3.5GHz frequency was chosen for fixed WiMAX for its higher capacity
of up to 40Mbps but its higher frequency makes it less able to
penetrate through walls and trees. Lower frequency 2.5GHz signals are
better at that thus making them more suitable for mobile devices. But
it has lower capacity of up to 15Mbps, which is acceptable for handheld
devices with their lower bandwidth demands.
The road to the issuance of 2.3GHz licenses was rough, when Dato' Seri
Lim Keng Yaik, Ministry of Energy, Water and Communications cancelled
tender for spectrum to operate mobile WiMAX services in the 2.3GHz band
on its closing date on 18 July, 2006.
That shocked and disappointed many in the industry, and end users
alike, who were looking forward to more broadband choice for Internet,
data and VoIP access.
On 1 August, the minister explained that some of the tenders did not
mention access or access pricing was too high and there were doubts
about interoperability between different vendors' equipment, which
would ultimately inconvenience end-users.
He also said that mobile WiMAX handsets wouldn't be available in
sufficient numbers until the middle of 2007 and that he wanted networks
which were interoperability, with the highest speed at the lowest price
and support mobility.
The minister also wanted WiMAX operators to provide at least 2Mbps
speed to users and indicated he wasn't keen to assign the 2.3GHz
frequencies to existing 3G, 3.5GHz and 2.5GHz licensees, since he felt
they had less incentive to roll out service and would just sit on the
frequency.
As of January 2006, the six fixed access 3.5GHz spectrum licensees were
Airzed Broadband, Atlas One, TT dotCom, Nasioncom, Maxis Broadband,
Telekom Malaysia and EB Technologies, according to the Malaysian
Communications and Multimedia Commission (MCMC). At that time, AtlasOne
was re-applying, while TT dotCom had trial spectrum.
Jaring has 2.5GHz which it uses to provide its Jaring Flite wireless
broadband Internet service in the Klang Valley, though the technology
Jaring currently uses is from SOMA Networks in California, which uses
Wideband CDMA, similar to 3G, though Jaring could easily migrate to
WiMAX over 2.5GHz later on.
It's not clear who the other 2.5GHz licensees are, except that Telekom
Malaysia has 2.5GHz which it wants to use for WiMAX. Maxis recently
conducted mobile WiMAX trials over the 2.5GHz trial spectrum. EB
Technologies and AtlasOne also previously had 2.5GHz to use for fixed
wireless broadband.
Well, the minister lived up to his word and none of the mobile operators, 3.5GHZ and 2.5GHz licensees got the 2.3GHz spectrum.
On the positive side, this provides for greater competition and
supposedly better quality of service and lower prices for consumers but
the downside is that established operators like Telekom Malaysia, DiGi
and Maxis would have the resources and funds to roll out nationwide
service. MCMC itself announced that it expects that each licensee “will
invest between RM250m - RM300m in the first three years of
implementation of WiMAX.That's not small change and raises valid
questions as to whether the license winners will have the necessary
financial resources.
Or have the technical expertise to roll out WiMAX networks.
Redtone is a VOIP services provider. A spin-off operates the Mobile
Money payment service. It will be entering a new area in
telecommunications when it launches its WiMAX service.
YTL-e is an incubation house. Its current business is in investing in
and growing IT and telecommunications companies. With YTL-e being part
of the larger YTL group, it would be able to roll out a network
although, again, it will have to learn a new business.
Asiaspace Dotcom has the physical infrastructure side worked out as it
currently builds and operates telecommunications towers for telcos in
Malaysia. It will probably plan to use those towers for WiMAX
implementation but will need to work out the financing aspects.
Green Packet will probably use the spectrum to complement its SONmetro
wireless broadband network being deployed in the Klang Valley over
unlicensed 2.4GHz band. Of all the license winners, technically
speaking, Green Packet has experience in wireless technologies similar
to WiMAX.
The big guns were naturally disappointed but unfazed.
For example, while DiGi chief executive officer Morten Lundal regretted
the loss of opportunity for DiGi to use its resources and skills to
benefit all consumers and make Malaysia a reference country for
successful mobile broadband development, he added that DiGi stood ready
with practical and realistic solutions to quickly enable high-speed
connectivity for both urban and rural areas in Malaysia.
High-speed connectivity over 2.5GHz perhaps?
Last December, the MCMC reportedly said it had a working group looking
into making 2.5GHz available for mobile WiMAX and could put that
spectrum up for WiMAX deployment later this year, providing further
opportunity for the others to get a WiMAX license.
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