Malaysia to hold 700-MHz auction in 2018

13 Oct 2017
00:00
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Daily News

The Malaysian Communications and Multimedia Commission (MCMC) has revealed plans to hold a 700-MHz spectrum auction next year.

The regulator has laid out plans to hold a beauty contest auction for eight 2x5MHz blocks of highly sought after 700-MHz spectrum, with the aim of allocating spectrum to the winners from January 1 2019, the Star Onlinereported.

Applicants will be limited to four blocks each and will have to submit a 10 million ringgit ($2.36 million) deposit with their bids

The base price of a 2x5MHz block of 700-MHz spectrum will be 215.54 million ringgit if paid in a lump sum, or 417.12 million ringgit if paid over up to 15 years.

While Malaysian operators have long been waiting for the allocation of 700-MHz spectrum, with its wider reach and superior indoor coverage, they are grappling with intense price competition, the entry of new players and weak consumer sentiment. This could dampen enthusiasm for the auction.

Mobile operators Celcom Axiata, Digi.com, Maxis and U Mobile are believed to have paid a combined 2.7 billion for spectrum during previous auctions in the 900-MHz and 1800-MHz bands.

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