SEVERAL private infrastructure companies are in the race to clinch the
potentially lucrative business of providing telecommunications towers and
renting them out to mobile phone operators which have been operating
unlicensed radio base stations virtually since the day they were set up.
  Though three state governments had formed joint ventures to provide such
services, they have also been found to be unlicensed. That leaves the way
clear for three other companies to vie for the business.
  Privately-held Asiaspace Dotcom has emerged as the one closest to
getting the lion's share because it has the backing.
  Two other companies, Mimos Bhd and Fibrecomm Sdn Bhd, are also believed
to be in the running to take part in the realignment of the
telecommunications industry.
  Asiaspace, incorporated in October 1996, secured two crucial licences
early this year.
  It has been awarded a Network Services Provider (NSP) licence and
Network Facilities Provider (NFP) licence. Of the two, the NFP licence is
rarer because it allows Asiaspace to put up infrastructure to carry
broadcasting services.
  Regulatory sources say that the licence which Asiaspace has, allows it
to own and rent telecommunications towers.
  In contrast, Mimos has only an Application Services Provider licence and
a Network Services Provider licence. These licences allow Mimos to provide
services but not own network facilities.
  "With the two licences Asiaspace can act as carrier for broadcasting
services but not telecommunications services," an industry source said
  Mimos is a state-owned entity while Fibrecomm's major shareholders are
the public listed Technology Resources Industries Bhd via Celcom
Transmission (M) Sdn Bhd, Tenaga Nasional Bhd and Malaysian Resources Corp
Bhd. Fibrecomm uses power lines to send data and voice. Its main business
is in the fibre optic transmission network business.
  The private-owned concern owns 2,000km of fibre optic located mostly
alongside Tenaga Nasional Bhd's power grid networks throughout West
Malaysia. The company is also currently trying to beef up its marketing
division, sources said.
  Fibrecomm, which has a paid-up and authorised capital of 75 million
shares issued at RM1 a piece, was formed in 1992. It has about RM120
million in fixed assets as at the end of last year along side a current
liabilities position of RM61.35 million.
  Among its directors are Horst Holzhauser and Bistamam Ramli, who is also
an executive vice-president in TRI.
  Sources believe Asiaspace is the favourite to snatch the lucrative deal
which is being pushed to ensure that telcos pool resources in terms of
setting up new telecommunications towers.
  In Malaysia, there about 7,000 base transceiver stations (BTS) to match
its 7 million active cellular subscriber base.
  The Government on its part is trying hard not only to streamline the
applications for setting up new BTS but also to urge the five operating
mobile phone companies to use a single transmission tower rather than have
individual transmission towers.
  The five telcos operating in the crowded cellular transmission business
are the publicly traded Telekom Malaysia Bhd, TRI, DiGi dotcom Bhd, Time
dotCom Bhd and the privately-held Maxis Communications Bhd.
  It is believed that the federal authorities are against the idea of
individual state governments appointing private companies to run this
business as the federal authorities are more in favour of appointing one
single company to own and rent communication towers to the telcos.
  "I do not believe that the proposals from companies like Konsortium
Jaringan Selangor (KJS) Sdn Bhd to own, build and sub-let BTS to telcos
will be approved," a source said.
  It is believed KJS had made a submission to the Malaysian Communications
and Multimedia Commission (MCMC) for approval but as at press time, the
MCMC has yet to reply to Business Times query on whether KJS has indeed
made an application for a new set of licence.
  KJS has been appointed as the go-between in Selangor between telcos and
the state authorities for application to set up new BTS in the state. It
also has long-term plans to build, own and rent telecommunication towers
to telcos.
  Sources, meanwhile, say that Asiaspace, which is linked to lawyer-cum-
businessman Abdul Ghani Abdullah, has started negotiations with TRI for
the takeover of the entire fleet of Celcom (M) Sdn Bhd's BTS in Peninsular
Malaysia.
  "TRI has invited Asiaspace to submit a proposal," an industry source
said. Industry sources estimate the sale of a single telecommunication
tower will cost up to RM750,000 minus the transmitting devices. The
transmitting devices for each station will cost about RM300,000.
  Celcom, fully owned by TRI, has about 1,500 BTS throughout Peninsular
Malaysia, with most of them in the Klang Valley, Penang and Johor.
  Meanwhile, personalities linked to Asiaspace Dotcom Sdn Bhd may also be
appointed to a Main Board-listed media group in the first quarter of next
year.
  The media grouping is expected to undergo a major corporate
restructuring to help trim debts of the parent company.
  It is further believed that ING Barings is the lead adviser for the
restructuring of the troubled grouping which may also lead to a change in
the controlling shareholders. - BT