KUALA LUMPUR (Aug 30): The Malaysian Communications and Multimedia Commission (MCMC) has finally announced the fee details of the long-awaited spectrum assignment for telecommunications companies.

In a bourse filing today, DiGi.Com Bhd said its unit Digi Telecommunications Sdn Bhd has received a letter of offer dated Aug 30, 2016 from the MCMC, in respect of the allocation of 2x5MHz of 900MHz and 2x20MHz of 1800MHz bands, effective July 1, 2017.

"The acceptance deadline for this letter of offer is Nov 1, 2016," it said.

According to DiGi.Com, the spectrum fee consists of two components, namely the price component totalling RM598.55 million, and an annual fee component of RM51.48 million.

"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," the country's largest telco by subscriber base added.

Meanwhile, Axiata Bhd said its wholly-owned subsidiary, Celcom Axiata Bhd, has received the letter of offer from MCMC for the allocation of 2x10MHz of the 900MHz bands, and 2x20MHz of the 1800MHz bands, effective July 1, 2017.

Similarly, Axiata’s spectrum fee comprises two components: the price of the spectrum which is RM816.75 million, and the annual fee component of RM70.25 million.
 
"The payment of lump sum or first payment for spectrum assignment is due on Nov 1, 2016," Celcom added.

Maxis Bhd too announced it has received an offer letter from MCMC for the assignment of 2x10Mhz of 900MHz and 2x20MHz of the 1800MHz bands, for a sum of RM816.75 million, as full settlement upon acceptance, or for 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 July 1, 2017, for a period of 15 years," it added.

Maxis said it has until 12 noon on Nov 1, 2016 to accept the offers, and make the required payment.

MCMC had on Feb 1 this year, revealed that the 900MHz and 1800MHz spectrum will be reallocated among Celcom Axiata Bhd, DiGi.Com, Maxis and U Mobile Sdn Bhd, by August 2016, with full implementation by July 2017.

MCMC chairman Datuk Seri Halim Shafie had said the four were chosen for the spectrum allocation, as they already havr sufficient infrastructure to expand upon.

"The reallocation takes into account the development of the sector and the nation, as a whole," he added.

Hit by falling oil revenues, the Malaysian government announced in January that it planned to raise revenue by redistributing telecommunication spectrum and start a bidding process.

Shares in DiGi.Com closed at RM5.02 today, gaining one sen or 0.2% for a market value of RM39.03 billion.

Axiata, meanwhile, fell one sen or 0.18% to settle at RM5.49, giving it a market capitalisation of RM49 billion. Maxis slid five sen or 0.79% to close at RM6.28, for a market value of RM47.17 billion.