Mainstream
Is 700MHz spectrum a boon or bane?
Ng Wai Mun | 03 Nov 2017 00:30
The high cost of acquiring the 700MHz spectrum is a burden to smaller telco players

PLANS by the Malaysian Communications and Multimedia Commission (MCMC) to reallocate the 700MHz spectrum may favour the larger telecommunications companies (telcos) while putting smaller ones at a disadvantage.

This is mainly due to the high fees – a minimum of RM215.54 mil for each 5MHz band – imposed by the MCMC which has caused some discomfort to industry players, especially with the economic challenges.

Although MCMC has provided options for instalment payments stretching over 15 years, it will still be a huge financial burden to smaller telcos.

“It is literally a scenario of ‘damned if you do and damned if you don’t’ for the smaller telcos,” a regional telecommunications analyst tells FocusM.