A second round of bidding for two remaining high-speed third-generation (3G) mobile phone licenses in Malaysia may start soon, a report said today.

The Star newspaper, citing an industry source, said the government was debating whether to open up bidding to foreign operators.

The government was also considering whether it should limit bids to telecommunications companies or allow any company to bid, it said.

In July 2002, the government awarded 3G licenses to Telekom Malaysia and Maxis Communications.

The two companies are expected to spend RM7.5 billion over the next decade to roll out 3G services later this year.

Malaysia's smallest mobile operator DiGi.com Bhd last November revived its bid to secure a high-speed 3G license.

Malaysia's mobile phone penetration rate has reached more than 30 percent and the government hopes to speed up adoption rates and reach an official target of 38 percent by 2005 with new 3G networks.

The new technology allows speedy mobile access to data and video through the Internet.