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Celcom, Digi, Maxis & U Mobile gets letter of offer for 900Mhz/1800Mhz spectrum pricing

The Malaysian Communications and Multimedia Commission (MCMC) has sent letter of offers to Celcom Axiata, Digi and Maxis for the spectrum relocation of the 900Mhz and 1800Mhz band. The letter includes the new spectrum fee that the Telcos will have to pay shall they accept the offer.

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Full copy of the announcements to Bursa Malaysia below.

Axiata Berhad (Celcom Axiata)

Further to the announcement dated 2 February 2016 in relation to the spectrum reallocation of 900MHz and 1800MHz, Axiata wishes to announce that its wholly-owned subsidiary, Celcom Axiata Berhad has received a Letter of Offer dated 30 August 2016 from the Malaysian Communications and Multimedia Commission in respect of the allocation of 2x10MHz of 900MHz and 2x20MHz of 1800MHz bands effective 1 July 2017.

The spectrum fee consists of 2 components:-
(i) Price component of RM816,750,000.00 ; and
(ii) Annual fee component of RM 70,252,000.00.

The payment of lump sum or first payment for spectrum assignment is due on 1 November 2016.

This announcement is dated 30 August 2016.

Digi.com Berhad

Further to the announcement dated 2 February 2016 in relation to the spectrum reallocation of 900MHz and 1800MHz, Digi wishes to announce that its wholly-owned subsidiary, Digi Telecommunications Sdn Bhd has received a Letter of Offer dated 30 August 2016 from the Malaysian Communications and Multimedia Commission in respect of the allocation of 2x5MHz of 900MHz and 2x20MHz of 1800MHz bands effective 1 July 2017. The acceptance deadline for this Letter of Offer is 1 November 2016. The spectrum fee consists of two components:-

  • Price component of RM598,545,000; and
  • Annual fee component of RM51,484,000

The allocation and tenure of these two bands will allow for better investment planning and optimal network design with improved indoor network quality and efficient coverage efficiency for best internet experience in a consistent manner.

This announcement is dated 30 August 2016.

Maxis Berhad

Maxis wishes to announce that the Company’s relevant wholly owned subsidiaries licensed under the Communications and Multimedia Act 1998 had on 30 August 2016 received letters of offers from the Malaysian Communications and Multimedia Commission (“MCMC”) for the assignment of 2 x 10 of 900MHz and 2 x 20 of 1800MHz (“Offers”) for a sum of RM816.75 million as full settlement upon acceptance or higher amounts under staggered payment options. In addition, total spectrum maintenance fees are fixed at RM70.25 million per annum for the entire assignment period.  The assignments upon issuance will be effective from 1 July 2017 for 15 years.

The Company’s relevant subsidiaries have until 12 noon, 1 November 2016 to accept the Offers and effect the required payment. A further announcement will be made upon acceptance of the Offers.

This announcement is dated 30 August 2016.

U Mobile Sdn Bhd (Media Statement)

Further to the announcement dated 2 February 2016 in relation to the spectrum reallocation of 900MHz and 1800MHz, U Mobile Sdn Bhd wishes to announce that it has received a Letter of Offer dated 30 August 2016 from the Malaysian Communications and Multimedia Commission in respect of the allocation of 2x5MHz of 900MHz and 2x15MHz of 1800MHz bands effective 1 July 2017. The acceptance deadline for this Letter of Offer is the same as the other telcos.

The spectrum fee consists of two components:-

  • Price component of RM503,406,000; and
  • Annual fee component of RM43,305,000

 

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy