BY next week, the Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik is likely to announce the winners of the Worldwide Interoperability for Microwave Access (WiMax) licences, industry players say.

The front-runners to bag the licences, BizWeek understands are YTL e-Solutions Bhd, Green Packet Bhd and REDtone International Bhd.

It was earlier stated by Lim that as many as four companies would be awarded WiMax licences, but recent indications point towards only three companies out of 17 bidders securing the much sought after permits.

However it is still not clear if another player may be awarded a licence at a later date. Lim had earlier stated that there would be four companies awarded WiMax licences, and had indicated that two winners would be announced by end February, and the other two at a later date.

Some of the companies that have bid for the licences are high profile players such as Telekom Malaysia Bhd, Maxis Communications Bhd, DiGi.Com Bhd, MiTV Corp Sdn Bhd and NasionCom Holdings Bhd among others.

Much of the hullabaloo is because a WiMax licence will enable a company to offer full-fledged cellular services such as voice, video and data services via mobile phone networks and thus could prove to be lucrative for the winners.

Both YTL e-Solutions and Green Packet were reported to be the front-runners to bag the licences some weeks ago, but the inclusion of REDtone is something new.

Most companies have already undertaken the necessary groundwork. Late last year YTL e-Solutions announced that it had acquired 50% equity in BizSurf (M) Sdn Bhd for some RM1.3mil, a company, which has bid for the WiMax services licence.

Green Packet meanwhile had acquired a 55% stake in MIB Comm Sdn Bhd, via Packet One International Sdn Bhd for some RM6mil cash late last year.

REDtone's bid, meanwhile, is via its 54.5% unit REDtone CNX Broadband Sdn Bhd (formerly known as CNX Solutions Sdn Bhd).

However, REDtone's officials have stated that it will be going for a RM350mil bond issue to help finance any cash requirements of the WiMax initiative.

All three companies shares have been actively traded and shown considerable gains from the early part of the year possibly on word of the impending license being awarded.

YTL e-Solutions' shares since early February have surged by as much as 220% and ended trading on Thursday at 78.5 sen. REDtone, meanwhile, started gaining momentum in mid-February and ended trading on Thursday at 81 sen, some 41% up from early January this year.

Green Packet has maintained its steady run since last year and closed on Thursday at RM5.40, gaining by as much as 22% year to date.