KUALA LUMPUR – Spectrum allocation through preferential rights is allowed under the Communications and Multimedia Act 1998, but it must follow an orderly and rigorous process, according to the Malaysian Communications and Multimedia Commission (MCMC).
According to the commission, the allocation of radio frequencies should take into account the spectrum plan itself, equitable distribution to support quality services to consumers, long-term certainty of allocations, and prior allocations to licensees.
Based on these principles, the 2600MHz and 900MHz bands of the spectrum have been identified.
“The 2600MHz spectrum had been allocated since 2012 to eight licensed companies, which are Celcom, Digi, Maxis, UMobile, Redtone, Webe, YTL, and Altel, following a previous spectrum allocation.
“A small portion of 900MHz has been given to Altel,” said a statement by MCMC.
This time, it added the allocation is by “spectrum assignment” and not through “apparatus assignment”, to provide each licensee long-term certainty to make plans.
The allocation of spectrums is accomplished under section 174 of the said act, which requires a directive from the minister, and determination by the minister for the use of legal apparatus.
MCMC said each assignment requires a market evaluation process and results submitted to the minister’s office by the commission for consent to adopt the legal apparatus recommended in accordance with the act.
“Each allocated spectrum will now be subject to stricter conditions, to be applied through investment in the network.
“This is based on the network investment plan provided by the licensee to MCMC,” it added.
In addition, the commission said that this plan is consolidated with the terms of spectrum use to ensure that the network provides more robust services to users as a result of optimal spectrum utilisation.
“The MCMC will withdraw spectrum allocations if the conditions are not met.
“These legal apparatus are necessary before the commission is allowed to issue a spectrum allocation offer letter to the licensee,” it said.
According to the statement, the offer letter will contain the cost of the spectrum to be paid to the MCMC, as well as stricter spectrum usage conditions.
“Only when the licensee agrees with the spectrum price and conditions of use will MCMC provide a letter of award.
“Once the spectrum is adopted, the commission will monitor its implementation in accordance with the plan set in the conditions for the use of the spectrum,” MCMC said.