KUALA LUMPUR: The method of allocating spectrum through preferential rights is allowed under the Communications and Multimedia Act 1998 but it must be followed by an orderly and rigorous process, according to the Malaysian Communications and Multimedia Commission (MCMC).

Spectrum is part of a larger group of electromagnetic spectrum corresponding to radio frequencies, also known as radio waves.

According to the commission, the spectrum allocation should take into account the spectrum plan itself, equitable distribution to support quality services to consumers, long-term certainty of the allocation, as well as prior allocation to licensees.

Based on these principles, the 2600MHz and 900MHz spectrum allocation have been identified.

"The 2600MHz spectrum had been allocated since 2012 to eight licensed companies, which are Celcom, Digi, Maxis, U Mobile, Redtone, Webe, YTL, and Altel, following a previous spectrum allocation.

"While a small portion of the 900MHz identified had been given to Altel," according to a statement by MCMC.

This time, the allocation is by 'Spectrum Assignment' and not through 'Apparatus Assignment' to provide long-term certainty for each licensee to make plans, it added.

The allocation of spectrum 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 the Minister to give consent to adopt the legal apparatus recommended in accordance with the Act.

"Each allocated spectrum will now be subject to stricter conditions so that it would 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 the use of spectrum to ensure that the network provides more robust services to users as a result of optimal spectrum utilisation.

"The MCMC would withdraw the allocation of the spectrum if the conditions were 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, MCMC will provide a letter of award.

"Once the spectrum is adopted, the commission will monitor its implementation in accordance with the plan that has been set in the conditions for the use of spectrum," MCMC said.

-- BERNAMA