Friday, December 3, 2010

Rais: Telco chiefs calmed by spectrum explanation

December 01, 2010
Malaysian Insider
Rais (right) blamed the media for the telco chiefs’ discontent over the alleged spectrum award. — file pic
 
KUALA LUMPUR, Dec 1 — Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim today said telco players’ fears have been successfully allayed following their meeting with the prime minister over the YTL-700MHz issue.
“We gave an explanation and they (the telco chiefs) were satisfied because the 700MHz will always be there,” he told reporters here after unveiling his ministry’s new logo.

Rais admitted in Parliament yesterday that Datuk Seri Najib Razak met with industry players recently to discuss future plans for Malaysia’s communications sector.

However, The Straits Times reported that during the closed-door meeting, Najib had also told the Malaysian Communication and Multimedia Commission (MCMC) to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of 4G high-speed wireless broadband.

The Malaysian Insider also understands that Najib has directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Communications Sdn Bhd (YTL Comms), following the MCMC’s denial on the matter on Sunday.

The country’s telcos have been up in arms ever since MCMC’s chief planning and development officer Toh Swee Hoe told The Edge weekly that YTL Comms will get an apparatus assignment (AA) in the 700MHz for its hybrid television service.

Broadband spectra are now highly coveted by telecommunications and multimedia companies, and the alleged award of the AA in the prized spectrum to YTL Comms has riled the country’s telcos, who say it can be used to offer their services in rural areas.

They fear it would allow a new provider like YTL “a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

YTL Comms has denied that it will repurpose the spectrum for its broadband service, pointing out that it already has the 2.3GHz spectrum and a 20MHz block within the 2.5/2.6GHz spectrum which MCMC recently allocated.

Rais also reiterated that the 700MHz spectrum has never been awarded to any party as MCMC was keeping it for digital broadcasting purposes.

“Because the media do not understand, they have published preliminary news which caused some telco chiefs... to feel that this jeopardises their business,” he said.

He gave assurances that the 700MHz spectrum will be expanded and allocated accordingly to other industry players “based on need”.

On Sunday, MCMC denied that YTL Comms can operate its television service on the 700MHz band, saying “MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.”

However, in the same statement, MCMC said it was examining a YTL business plan for digital TV, which will operate within the 700MHz spectrum under the National Spectrum Plan

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