CelcomDigi and Maxis accept MCMC awards in 2.6GHz spectrum push

CelcomDigi will pay MYR381.75 million (US$94 million) for new spectrum assignments in the 2600MHz and 900MHz bands, after accepting awards from the Malaysian Communications and Multimedia Commission (MCMC). Maxis has accepted a separate 2600MHz award, committing an upfront fee of MYR203 million plus MYR84 million in annual fees over four years, according to a Bursa Malaysia filing.

Both operators now hold stronger mid-band positions. CelcomDigi, through its wholly owned subsidiary CelcomDigi Telecommunications Sdn Bhd (CDTel), secured 2x20MHz in the 2600MHz band. That award creates a contiguous 2x40MHz holding in the band. The subsidiary also picked up 2x5MHz in the 900MHz band, Bernama reported.

What are the terms of the assignments?

The tenures differ by band. CelcomDigi's 2600MHz assignment runs for four years. The 900MHz assignment runs for five.

The payments are fixed and known. CelcomDigi's combined outlay of MYR381.75 million covers both assignments — roughly US$94 million at current rates, or under MYR10 million per megahertz-pair across the 25MHz-pair total it received.

Maxis structured its payment differently. The operator pays MYR203 million upfront, then MYR84 million annually across the four-year assignment period. That brings its total commitment to MYR287 million for an additional 2x10MHz at 2600MHz.

What changes for each operator?

For CelcomDigi, the 2600MHz award doubles down on an existing position rather than opening a new one. The extra 2x20MHz turns scattered holdings into a single contiguous 2x40MHz block. Contiguous spectrum cuts the complexity of carrier aggregation and load management across the band, which matters for operators running high-traffic urban layers on 2.6GHz.

The 900MHz assignment serves a different purpose. Low-band spectrum carries signals further and penetrates buildings better than mid-band. CelcomDigi said the additional 900MHz capacity would support wider and deeper coverage nationwide, particularly outside dense urban areas.

In a statement, the operator framed the awards as an efficiency play as much as a capacity play. CelcomDigi said the new spectrum would improve its capital expenditure efficiency and boost network capacity and service quality to meet growing customer demand for quality and reliability. In practical terms, more spectrum per site means the operator can serve the same traffic with fewer new sites, easing capex pressure.

For Maxis, the additional 2x10MHz at 2600MHz expands a mid-band layer the operator already uses for capacity. Mid-band spectrum is the workhorse of high-throughput mobile service in most markets. The cost frame — MYR203 million upfront for 2x10MHz, against CelcomDigi's MYR381.75 million for 2x25MHz across two bands — gives practitioners a reference point for how MCMC prices paired spectrum by band.

How does the MCMC process fit the wider picture?

MCMC assigns spectrum for fixed terms rather than through indefinite licences, and the four- and five-year tenures here reflect that model. Shorter assignment cycles let the regulator revisit band plans and pricing more frequently, but they also push operators to treat spectrum fees as recurring operating costs rather than one-off licence purchases.

The two awards also signal that Malaysia's mid-band capacity race is consolidating around 2600MHz. Both major operators have now committed multi-hundred-million-ringgit sums to strengthen the band within the same regulatory window. That alignment typically precedes network upgrades, as operators move to exploit newly contiguous holdings.

Vendor statements about "boosted capacity" and "service quality" should be read as forward-looking commitments rather than delivered results. What is concrete today is the spectrum itself, the tenures, and the fees: CelcomDigi pays MYR381.75 million for 2x25MHz across two bands, Maxis pays MYR287 million in total for 2x10MHz at 2600MHz, and both operators now hold their new assignments for the next four years.