The government has cancelled a 'fourth generation' wireless broadband network tender project that would have boosted coverage and services for consumers, a report said today.

The government criticsed the tender specifications for the broadband network which was to have upgraded the current 3G or third-generation system, saying it did not conform with its policies.

The two-month-old tender which expired Tuesday was put out by the Malaysian Communications and Multimedia Commission (MCMC), an agency under the Energy, Water and Communications ministry.

"The specifications are not in line with the ministry's thinking," Minister Lim Keng Yaik was quoted as saying by the New Straits Times newspaper.

"I'm a bit angry and disappointed with MCMC for going out without getting the ministry's input and I have ordered it to be recalled," he said.

Bidders not known

The wireless broadband technology, dubbed World Interoperability for Microwave Access (WiMAX), was to run on the 2.3-gigahertz spectrum.

It is not known how many companies made bids since the project was opened for tender.

Three companies had indicated keen interest to venture into the WiMAX spectrum - DiGi.Com Bhd, REDtone International Bhd and NasionCom Holdings Bhd.

The goverment has awarded 3G licences to Telekom Malaysia Bhd, Maxis Communications Bhd, TimedotCom Bhd and MiTV Sdn Bhd.