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Malaysia decides against 3G auction

KUALA LUMPUR, Malaysia—The Mayalsian government has said it likely will award third-generation (3G) licenses in the country through a beauty contest rather than an auction to help ensure carrier profitability.

Industry experts have said the Malaysian market holds less potential for 3G services than other Asian markets because of its smaller subscriber base and lower per-capita income than other countries in the region.

The government has not said how many licenses will be awarded, but if the number of licenses is fewer than the current number of mobile operators—five—it likely will spur consolidation among the players, according to international press reports.

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