Digi, Maxis announce reallocated spectrum bands

PETALING JAYA: Digi.Com Bhd and Maxis Bhd were the first to announce their spectrum reallocation yesterday, after the Malaysian Communications and Multimedia Commission (MCMC) disclosed that it would reallocate spectrums in the 900MHz and 1800MHz bands among four players by August this year, for full implementation by 1 July 2017.
Digi told Bursa Malaysia that it has been allocated 2x5MHz of 900MHz and 2x20MHz of 1800MHz for 15 years.
"The certainty on allocation and tenure of these two bands will allow for better investment planning and optimal network design. With the improved spectrum portfolio for the 900MHz band, Digi looks forward to continue bringing quality high-speed internet to its 11.7 million customers and more nationwide," it said.
Maxis meanwhile said it received a reduced spectrum allocation of 2x10 MHz and 2x20 MHz for 900MHz and 1800MHz bands, respectively, without commenting further, citing a need to carry out a detailed review and gain more clarity on the matter.
Under the spectrum reallocation, Maxis said MCM plans to convert the annual apparatus assignment fee to an upfront spectrum assignment fee with long-term certainty for the spectrum.
The other two telcos involved in the reallocation, Celcom Axiata Bhd and U Mobile Sdn Bhd, have yet to announce their spectrum allocations.
Shares of telcos rebounded yesterday after a selldown following the reallocation of spectrum announcement last week, with Maxis and Axiata Group Bhd rising 22 sen and 20 sen to RM5.94 and RM5.81, respectively. Digi was up 3 sen to RM4.91.
Prior to the reallocation exercise, Maxis, Digi and Celcom had 50MHz each of the 1800MHz spectrum. Digi has only a 4MHz of the 900MHz band compared with Celcom's 34MHz and Maxis' 32MHz. U-Mobile Sdn Bhd did not have any spectrum in these two wave-bands.
The right to use a higher quota of the 900MHz spectrum is valuable as a lower frequency bandwidth enables wider coverage, although at a lower data carrier capacity.
On Monday, MCMC chairman Datuk Seri Halim Shafie said the spectrum reallocation of 900 MHz and 1800 MHz bands would reduce the spectrum available to 2x10 MHz and 2x20 MHz respectively.
Halim explained that the selection of these four players is because they already have sufficient infrastructure to expand on, to increase competition in the industry.
MCMC also said it will address the optimal usage of other relevant spectrum bands such as the 700MHz, 2300MHz, 2600MHz bands by the end of 2016.