KUALA LUMPUR (WiMAX Day). A recent equity alliance that would have allowed the mobile phone company DiGi Telecommunications Sdn Bhd (DiGi) to purchase a 3G spectrum license from the Malaysian telecommunications firm TIME DotCom’s (TDC) may be in jeopardy. This is due to last week’s announcement from the government that it plans to take back 2.5 GHz and 3.5 GHz broadband licenses, originally assigned to telecommunications firms, in order to reduce the number of wireless broadband players. Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik delivered the surprising news during a technology conference in Kuala Lumpur last week.

TIME DotCom initially reacted by issuing a statement saying that the new rules would not affect their partnership with DiGi. Unfortunately for TDC this statement was quickly rebuffed.  According to Yaik, the TDC would be required to file a letter of request asking permission for the transfer of the spectrum license with both the Ministry and the Malaysian Communications and Multimedia Commission. As of last week, TDC had not applied for necessary permit and plans between the two companies have been temporarily placed on hold.