Malaysia's third-largest mobile phone company DiGi.com announced Wednesday it will invest up to 800 million ringgit (242 million dollars) over three years to roll out its 3G services.

Morten Lundal, DiGi's chief executive officer said the company plans to roll out 3G services in the second half of next year, after the company annunced it will buy rival Time dotCom's broadband spectrum.

This will provide DiGi with a licence to operate 3G broadband services and allow it to meet foreign ownership rules.

DiGi will issue 27.5 million new shares valued at 649 million ringgit (197 million dollars) to fund its planned purchase of TIME dotCom's 3G spectrum.

Lundal said DiGi was not overpaying for the 3G licence.

"It is a fair (price) for what we are today," he told reporters at a news conference.

Time dotCom via its unit TT dotCom Sdn Bhd won the 3G licence last year. DiGi's key competitors Maxis Communications and Telekom Malaysia received their licences in 2002 after paying 50 million ringgit each.