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MCMC unveils pricing for reallocated spectrum in 900MHz/1800MHz bands

31 Aug 2016

Following the announcement back in February 2016 that it was reallocating spectrum in the 900MHz and 1800MHz bands, the Malaysian Communications and Multimedia Commission (MCMC) has now confirmed the pricing for these frequencies. In a press release the regulator revealed that, having conducted a study on the matter it had determined that a 2×5MHz block in the 900MHz will cost operators MYR499.725 million (USD123 million), while the same amount of spectrum in the 1800MHz has been priced at MYR217.770 million.

Three of the four operators that were included in the spectrum reallocation process made official filings with the Bursa Malaysia after the pricing announcement, confirming both the one-off fee that they will pay for their new frequencies, as well as the annual charge that applies. As such, Maxis and Celcom, which have both been earmarked 2×10MHz in the 900MHz band and 2×20MHz in the 1800MHz band, will pay MYR816.75 million upfront on accepting the new allocations, in addition to an annual spectrum maintenance fee of MYR70.25 million. Meanwhile, DiGi Telecommunications confirmed that it will pay MYR598.54 million upfront for 2×5MHz in the 900MHz and 1800MHz bands, with an annual fee component of MYR51.48 million. Only U Mobile has not made an official announcement regarding the one-off fee and annual charge for its allocations – 2×5MHz in the 900MHz band and 2×15MHz in the 1800MHz band – though local press outlet The Star Online cites industry experts as suggesting that it will pay around MYR500 million upfront, along with a yearly fee of around MYR40 million.

A deadline of 1 November 2016 has been set for operators to formally accept their new spectrum allocations.

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