Axiata, Maxis, Digi pay RM118.4m for spectrum

Free package: Celcom may be seen as keeping up with rival Maxis Bhd, which last year had begun offering free voice and SMS for its Maxis OnePlan users

KUALA LUMPUR: Maxis Bhd, Axiata Group Bhd and Digi.Com Bhd have received a reissuance of the existing spectrum assignment in various bandwidths from the Malaysian Communications and Multimedia Commission (MCMC).

The telecommunications providers said in separate filings to the stock exchange that their offers are subject to a price component payment of RM118.4mil and an annual fixed fee payment of RM50mil payable throughout the assignment period.

Each spectrum assignment is for a period of 16 years effective April 2, 2018.

Axiata, via its unit Celcom Axiata Bhd, received its spectrum assignment in the 1950 MHz to 1965MHz and 2140 MHz to 2155MHz band.

Digi, meanwhile, accepted the offer of reissuance of its 2100 MHz spectrum assingment at 2X15MHz.

Maxis' assignment was for the 2100 MHz spectrum comprising 2 x 15MHz and 1 x 5MHz.

All three telco providers said that they had made lump sum payment of RM118.4mil for the price component payment of the offer.

MCMC's sale of spectrum follows a pricing structure first unrolled in 2016 that caps the yearly fees, as opposed to the previous model where the fees increase when more base stations are built.

Industry experts have called the current pricing scheme reasonable and encourages telco providers to build more base stations as the yearly fees are capped.