KUALA LUMPUR: Axiata Group Bhd, Digi.Com Bhd and Maxis Bhd will have to fork out about RM5.1 billion for the new telecommunications spectrum allocated to them.
The three telcos announced yesterday that they had received offer letters from the Malaysian Communications and Multimedia Commission (MCMC) with regards to the finalised spectrum fees for the 900MHz and 1,800MHz bands that were awarded in February.
But the total fees will be more than RM5.1 billion, given that the other recipient, unlisted U Mobile Sdn Bhd, had yet to make any announcement at press time.
U Mobile in February confirmed that it had been allocated spectrum assignment of 2x5MHz of 900MHz and 2x15MHz of 1,800MHz for 15 years.
The initial 900MHz and 1800MHz spectrum licence term had expired several years ago and was now renewed annually.
All spectrum was previously allocated on either a “beauty contest” (3G-2.1GHz) or assignment (4G-2.6GHz) basis, with minimal upfront payment charged for the spectrum.
In its filing to Bursa Malaysia, Axiata said its spectrum fee, effective to its wholly-owned Celcom Axiata Bhd, would be RM816.75 million for the price component and RM70.25 million a year as maintenance fee over 15 years.
Celcom Axiata secured 2x10MHz of 900MHz and 2x20MHz of 1,800MHz bands.
Maxis will also pay RM816.75 million as price component and RM70.25 million maintenance fee annually over 15 years.
Digi will pay RM598.55 million for its 2x5MHz of 900MHz and 2x20MHz of 1,800MHz bands. This was on top of RM51.48 million in annual maintenance fee over the 15 years.
“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,” said Digi.
The telcos said the first payment was due on November 1.