Maxis, Celcom and DiGi to pay RM2.4b combined for spectrum assignment

by RAHIMI YUNUS / pic by MUHD AMIN NAHARUL

The country’s top three mobile telecommunication operators (telcos) — Maxis Bhd, Axiata Group Bhd and DiGi.Com Bhd — will pay RM2.4 billion in fixed fees collectively for 16-year spectrum assignments after accepting an offer from the Malaysian Communications and Multimedia Commission on the reissuance of spectrum assignment in the 2,100MHz band.

The assignment — effective from April 2, 2018 — will cost each company RM50 million a year.

In separate filings to Bursa Malaysia on Tuesday, the telcos noted they have paid in one lump sum upfront price component fee of RM118.4 million together with the acceptance of their respective offer.

Maxis’ spectrum assignment comprises 2x15MHz (Frequency Division Duplex) and 1x5MHz (Time Division Duplex).

Axiata’s wholly owned subsidiary Celcom Axiata Bhd was reissued its existing spectrum assignment in 1,950MHz to 1,965MHz and 2,140 MHz to 2,155MHz.

DiGi’s unit Digi Telecommunications Sdn Bhd accepted the reissuance of its 2,100MHz spectrum assignment at the 2x15MHz band.

The telcos’ stocks movements were mixed after the announcements of the reissuance spectrum assignment on Tuesday.

Axiata Group’s share price closed 0.18%, or one sen, higher at RM5.69 a share, while DiGi’s share price declined 1%, or five sen, to RM4.95. Maxis closed unchanged at RM6.08 a piece.