The government will issue two licences to telecommunication operators next year to provide fourth generation wireless high speed Internet services.

Lim Keng Yaik, energy, water and communications minister said the government hoped the winning bidders will roll out the WiMAX network nationwide in 2007.

The government in July cancelled the original tender for the WiMAX 2.3 gigahertz spectrum, saying that the specifications were not in line with the ministry's policy.

Lim has said the government hopes to issue up to four licences.

The original tender had attracted bids from 17 companies, including Malaysia's top communications firm Maxis Communications and DiGi Telecommunications Sdn Bhd.

WiMAX stands for Worldwide Interoperability for Microwave Access.

It is similar to the more familiar WiFi (wireless fidelity) that most laptops are equipped with, but has a higher capacity and operates across much longer distances.