CELCOMDIGI Bhd and Maxis Bhd recently secured additional spectrum rights worth RM381.75 mil and RM203 mil, respectively.
The awards give both mobile operators direct ownership of spectrum previously accessed through partners, improving network capacity and operational efficiency.
Hong Leong Investment Bank (HLIB) views the financial impact as broadly neutral, as upfront spectrum payments should be offset by savings in capital expenditure and lower network operating costs.
CelcomDigi secured 2x20MHz of spectrum in the 2600MHz band for four years and 2x5MHz in the 900MHz band for five years.
It paid the RM381.75 mil price component in full on Oct 15, although the annual spectrum fees were not disclosed.
HLIB estimates the award gives CelcomDigi contiguous spectrum holdings of 2x40MHz in the 2600MHz band and 2x20MHz in the 900MHz band.
The spectrum comprises Altel’s former 2600MHz holdings, previously leased to pre-merger Celcom and Digi, and its 900MHz block assigned in 2021.
Meanwhile, Maxis secured an additional 2x10MHz of 2600MHz spectrum for four years, paying an upfront fee of RM203 mil and annual fees totalling RM84 mil over the assignment period.
HLIB said contiguous spectrum holdings support wider carriers and greater spectral efficiency, expanding existing 4G network capacity without requiring additional network sites and the associated rental, power and capital expenditure.
This remains important as mobile data consumption rises alongside 5G capacity provided by Digital Nasional Bhd.
The research house expects fixed-line operators to benefit from their roles in broadband, 5G infrastructure and data centre deployments as Malaysia’s infrastructure build-out progresses.
Telekom Malaysia Bhd remains a top pick with a “Buy” rating and target price of RM9.10, while TIME dotCom Bhd carries a “Hold” rating and target price of RM5.50.
Both are optimising their balance sheets, including through revised dividend policies and special dividend payouts.
For mobile operators, HLIB sees stronger potential for sector re-rating in the second half of 2026 as concerns surrounding Digital Nasional Bhd gradually ease.
It favours CelcomDigi, with a “Buy” rating and target price of RM3.70, citing its potential to benefit most from improving pricing discipline and continued cost optimisation that could expand margins.
Overall, HLIB maintained its “Overweight” rating on the local telecommunications sector.—Oct 16, 2026
Main image: UNISOL
