Malaysian Communications and Multimedia Commission chairman Datuk Seri Halim Shafie says the spectrum fees have been determined per block of 2x5 megahertz in each band of 900MHz and 1800MHz.

KUALA LUMPUR: The Malaysian Communications and Multimedia Commission (MCMC) issued a statement yesterday to explain the fees it is charging for telecommunication spectrums allocated to four companies.

MCMC said the fees had been determined per block of 2x5 megahertz (MHz) in each band of 900MHz and 1800MHz.

“The total cost of a 2x5MHz block in the 900MHz band is RM499.72 million while the total cost of a 2x5- MHz block in the 1800MHz band is RM217.77 million,” said MCMC chairman Datuk Seri Halim Shafie.

“The total fee payable by each player will depend on the amount of spectrums that have been allocated to them in these bands.” he added.

Meanwhile, U Mobile Sdn Bhd yesterday said it would pay a total of RM1.15 billion for its spectrum portion.

In a statement, the company said it would pay a one-off payment of RM503.41 million in respect of the allocation of 2x5MHz of 900MHz and 2x15MHz of 1800MHz bands that it had secured recently.

Additionally, U Mobile will pay a maintenance fee of RM43.31 million annually for 15 years.

On Tuesday, it was reported that Axiata Group Bhd, DiGi.Com Bhd and Maxis Bhd would fork out about RM5.1 billion for the spectrum allocated to them in February.

In a filing with Bursa Malaysia on Tuesday, 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 secured 2x10 MHz of 900MHz and 2x20 MHz of 1,800MHz bands. 

Maxis, which secured similar bands as Celcom, 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 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.

The telcos said the first payment was due on November 1.

Halim said the same approach in spectrum optimisation would also be used for all other relevant spectrum bands such as the 700MHz, 2300MHz and 2600Mhz bands.

The announcement was made in line with the government’s decision to optimise the use of spectrum resources.

 Halim said to ensure costs were not passed down to consumers, players were required to offer packages that were cheaper than current prices to their subscribers.

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