Fixed-line giant Telekom Malaysia and top cellular operator Maxis Communications have been given the go-ahead to develop third-generation (3G) mobile phone networks, the communications regulator announced today.

Business plans submitted by the two companies had been approved, said Malaysian Communications and Multimedia Commission (MCMC) chairman Nuraizah Abdul Hamid.

"We have made our decision and we are in the process of finalising the documents which we will hand over to both companies," she was quoted as saying by the official Bernama news agency.

Telekom and Maxis had indicated they would spend up to RM400 million in the early stages of development, she said.

The 3G projects, which allow speedy access to data and video through the Internet, are targeted "to begin rolling out towards the end of the year or early next year," Nuraizah said.

The country's o­nly two 3G licences, valid for 15 years and priced at 50 million ringgit, were awarded to Telekom and Maxis last July o­n condition they presented acceptable business plans by the end of 2002. AFP