Malaysia's top mobile operator Maxis Communications expects high-speed third-generation or 3G mobile services to contribute up to five percent of sales by 2008, local media said.

"For us, between three percent and five percent is considered significant contribution," Maxis chief executive Jamaludin Ibrahim was quoted as saying by the national Bernama news agency.

He also said Maxis was still in talks with the Indonesian government on the fee it has to pay to start 3G services there.

Maxis and Hutchison Telecommunications International Ltd each have to pay RM195 million (US$53 million) as the up-front fee.

"We are still discussing with the government with regards to the 3G spectrum cost," said Jamaludin.

"We had hoped that it would be concluded last week but I think we need a couple more days to iron this one out," he said, adding that the fee was considered too high.

Speedy mobile access

The new 3G technology allows speedy mobile access to data and video through the Internet.

Maxis, controlled by tycoon Ananda Krishnan, is one of Malaysia's top telecommunications company providing voice and data services.

As of March 31, Maxis had 50,000 active 3G subscribers and some eight million users in total out of a population of some 26 million.

Krishnan also has an interest in the Pay-TV operator Astro.