Malaysia’s decision to award its largest digital telephone exchange system contract to five foreign firms has run into problems with news that Telenokia Oy, Alcatel NV and Fujitsu Ltd failed to meet compatibility targets: it is not clear whether these three will now be dropped from the plan, which includes the installation of 4m digital lines over the next five years; the other two companies – L M Ericsson Telefon AB and NEC Corp passed the compatibility tests.