Fitch Rating expects Malaysia's third-largest mobile operator DiGi and mobile virtual network operator U-Mobile to benefit from a larger allocation of the coveted 900MHz spectrum.
It said on Thursday this lower-frequency band is more cost-efficient for 4G deployment because of its wider coverage and better penetration within buildings.
“Fitch believes this will enable them to challenge the market leaders Celcom and Maxis, whose allocations for 900MHz and 1800MHz have been reduced,” it said.
The ratings agency said the spectrum fee has yet to be determined. However, the loss in spectrum for Celcom and Maxis may result in the companies increasing capex to construct new sites to ensure service quality is not compromised.
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It said on Thursday this lower-frequency band is more cost-efficient for 4G deployment because of its wider coverage and better penetration within buildings.
“Fitch believes this will enable them to challenge the market leaders Celcom and Maxis, whose allocations for 900MHz and 1800MHz have been reduced,” it said.
The ratings agency said the spectrum fee has yet to be determined. However, the loss in spectrum for Celcom and Maxis may result in the companies increasing capex to construct new sites to ensure service quality is not compromised.
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