What happened
CelcomDigi and Maxis have both accepted spectrum assignments from the Malaysian Communications and Multimedia Commission (MCMC), Developing Telecoms reported on 19 October. Both operators are adding spectrum in the 2600 MHz band. CelcomDigi disclosed its acceptance in a Bursa Malaysia filing dated 15 October.
CelcomDigi
Through its wholly owned subsidiary CelcomDigi Telecommunications Sdn Bhd, the operator secured:
- 2x20 MHz in the 2600 MHz band, for four years;
- 2x5 MHz in the 900 MHz band, for five years.
The combined price is MYR381.75 million (about US$94 million). The 2600 MHz award gives CelcomDigi a contiguous 2x40 MHz block in the band. The company said the spectrum would improve capital expenditure efficiency and increase network capacity and service quality. It also said the extra 900 MHz would support wider and deeper coverage.
Maxis
Maxis picked up an additional 2x10 MHz of 2600 MHz spectrum, also for four years. According to its Bursa filing, it will pay an upfront fee of MYR203 million plus annual fees totalling MYR84 million over the assignment period.
Context
The assignments are fairly short, at four and five years. That suggests the MCMC wants to keep flexibility over the bands while operators add capacity for 4G and 5G traffic.
Why it matters financially
The two awards together involve reported payments of MYR381.75 million from CelcomDigi and MYR287 million in upfront and annual fees from Maxis. For both operators, buying spectrum is a way to add capacity at lower cost than building more sites. CelcomDigi made that argument itself when it cited capex efficiency.