Wednesday, October 13, 2010

Press Statement from MCMC on the allocation of the 2600MHz spectrum


The Malaysian Communications and Multimedia Commission (MCMC) has started spectrum re-farming exercise and processes as part of its efforts to enhance the utilisation of spectrum and to facilitate the roll out of next generation mobile network services.

The exercise involved the following bands:

i) 700MHz;
ii) 800MHz;
iii) 850MHz;
iv) 900MHz;
v) 1800MHz; and
vi) 2600MHz

Following the exercise, MCMC has decided to give focus to the allocation of the 2600MHz band to pave the way for the early adoption of long-term evolution (LTE) or 4G, and other new technologies and to prepare the service providers for the rollout and implementation of these services to end-users.

After a consultative and deliberation process with various technical groups, it was decided that the assignment of 2600MHz to be given to nine (9) companies who are license holders that meet the set requirements.

The allocation of the assignment is done in accordance to the provisions of the Communications and Multimedia Act 1998 (CMA).

The companies include incumbents (existing 3G and WiMAX players) and a new entrant: They are:

i) Celcom Axiata Berhad;
ii) Maxis Broadband Sdn Bhd;
iii) DiGi Telecommunications Sdn Bhd;
iv) U-Mobile Sdn Bhd;
v) Asiaspace Sdn Bhd;
vi) Packet One Networks (M) Sdn Bhd;
vii) RedTone Marketing Sdn Bhd;
viii) YTL Communications Sdn Bhd; and
ix) Puncak Semangat Sdn Bhd.

The committee had identified these companies as having the ability to promote innovation and to provide seamless continuity of existing services using new technologies. MCMC also recognizes the contributions made by the wireless service providers towards the fulfilling the objectives of the National Broadband Initiatives.

The companies are required to pay fees in order to use the spectrum band and will NOT receive grants of any kind from MCMC or the Universal Service Provision (USP) Fund for the utilization of the spectrum. The USP Fund is for the development and deployment of communications facilities for rural development.

MCMC has issued letters to the license holders on the allocation of the 2600MHz spectrum band for rolling out wireless broadband service using 4G technology by 1 January 2013. The assignment of the 2600MHz spectrum band will be based on the merit of the Detailed Business Plans (DBP) to be submitted by the license holders to meet the requirements of the allocation.

The assignment of the spectrum band is by way of apparatus assignment and MCMC has the right to withdraw the assigned spectrum at any time if companies fail to comply with the set terms and conditions.

Among the key requirements in the assignment of spectrum are roll out targets and their roles as promoter and developer of applications and contents that will help build a ubiquitous Malaysia lifestyle by 2020.

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