PETALING JAYA: Eight companies have been allowed access to the much-anticipated 2,600 MHz spectrum band which allows mobile phone users to enjoy long-term evolution (LTE) or 4G services with broadband speeds in excess of 100Mbps.
The eight are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd.
Malaysian Communications and Multimedia Commission (MCMC), which announced the allocation to the eight companies yesterday, said in a statement that existing service providers might use the 2,600 MHz spectrum band to further expand and enhance the capacity of their mobile broadband networks to meet increasing consumer demands.
The technology promises many new services to consumers such as high definition video streaming, enhanced user experience on real-time applications and better connectivity for mobile and consumer electronic devices.
The spectrum allocation will allow users of LTE, which is the next leap in mobile broadband technology after 3G, to boost Internet surfing speeds on the next generation smartphones such as the iPhone 5 and the Samsung Galaxy S3 LTE.
Telcos namely Celcom, DiGi and Maxis are also touting LTE to be the next driver of data demand as users upgrade their mobile phones and sign fresh contracts with them when they purchase new smartphones for faster internet speeds.
MCMC said since the introduction of 3G and WiMAX technology in Malaysia, the demand for better quality mobile broadband service had intensified. “This allocation is in line with similar initiatives in developed countries like the United States and some European states. “Market readiness for 4G technology is also reaching its maturity as increasingly, many of the latest devices in the global market support the use of this technology, hence the economies of scale will bring much benefit to the country,” it said.
MCMC said service providers were expected to enter into smart partnerships and sharing agreements between them which included spectrum and radio access network sharing in order to utilise larger bandwidths, lower the cost of rollout and offer better LTE-experience and affordability to consumers.
“Smart partnerships mean shared infrastructure, thus reducing the duplication of physical transmission towers,” MCMC said.
LTE wholesale Mobile Virtual Network Service would also be offered to other service providers that did not get access to the allocation, MCMC added. MCMC chairman Datuk Mohamed Sharil Tarmizi said the introduction of a new player was expected to bring fresh ideas and innovation to the market.
“MCMC is always committed to finding the right balance between the needs of consumers, investors and other stakeholders of the industry. “We believe that the balance struck between ensuring healthy competition in the market and promoting industry development will help spur continued growth for existing service providers and provide opportunity for new market entrants,” he said.
