MCMC details 700MHz band spectrum allocation plans

12 Oct 2017

The Malaysian Communications and Multimedia Commission (MCMC) has called for comments on its plans to offer spectrum in the 700MHz band, ahead of formally inviting applications for such frequencies. The MCMC’s ‘Marketing Plan No. 1 of 2017’ lays out a number of details regarding its plan to allocate spectrum in the aforementioned band. A total of eight 2×5MHz blocks will be made available, with the regulator implementing a spectrum limit of 2×20MHz per applicant. Further, it notes that the effective date of the spectrum assignment is 1 January 2018; as 700MHz frequency bands are currently used for analogue broadcasting services in Malaysia, it said this timeline was dependent on the switch-off of such services.

In terms of pricing, the MCMC has set a fixed price of MYR215.5 million (USD51.1 million) for each 2×5MHz block, for companies that opt to pay via a single lump-sum payment. Other payment schedules are on offer, however, offering the option of spreading the payments over either five, ten or 15 years, albeit for a higher total fixed licence fee (e.g. MYR328.4 million if spread across 15 equal annual payments). In addition, all companies will be required to pay an annual fee of MYR18.5 million for the 15-year concessions.

According to the MCMC’s timetable, it will accept comments on its plans until 25 October, following which it aims to publish the official invitation to apply for spectrum on 31 October, with interested parties given until 2 January 2018 to do so.

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