Maxis and CelcomDigi Accept New Spectrum, Analysts Say Costs Can Be Offset

Malaysia's two biggest mobile operators have secured more airwaves. Maxis and CelcomDigi accepted spectrum awards in the 2600MHz and 900MHz bands in October 2026, and analysts at Hong Leong Investment Bank (HLIB) said the costs should be largely offset by savings elsewhere, according to The Edge Malaysia.

What each operator received

Based on company announcements and reports:

• Maxis accepted a four-year assignment of 2x10MHz in the 2600MHz band, with about RM203 million upfront and around RM84 million in annual fees.
• CelcomDigi accepted 2x20MHz in the 2600MHz band and 2x5MHz in the 900MHz band, paying RM381.75 million upfront.

Reports noted that CelcomDigi's award brings airwaves previously associated with Altel under its direct control.

Why spectrum matters

Spectrum is the radio frequency range that mobile networks use to carry voice and data. More spectrum generally means more capacity, which helps operators handle growing data traffic and maintain speeds during busy periods. Different bands have different strengths. Lower bands like 900MHz travel further and penetrate buildings better, while higher bands like 2600MHz carry more data over shorter distances.

The HLIB view

HLIB said the upfront costs should be offset by avoided capital expenditure, site rental and power costs that would otherwise be needed for site densification, according to The Edge. In simple terms, more spectrum means operators can add capacity on existing towers instead of building many new sites, making the financial impact broadly neutral.

Key takeaway: more spectrum is usually cheaper than building more towers. That is why analysts see these awards as roughly neutral financially.

The 4G and 5G context

The awards come as Malaysia's 5G landscape continues to evolve. Even so, 4G remains the backbone for many users, especially outside major cities, so extra 4G capacity still matters for everyday mobile experience.

Why the 900MHz band stands out

The 900MHz band is particularly useful for coverage. Signals at lower frequencies travel further and pass through walls more easily, which helps in rural areas, inside buildings and in basements or car parks where mobile signals often weaken. For users in suburban and rural parts of Malaysia, low-band spectrum can make a noticeable difference in call quality and data reliability, even if peak speeds are lower than on higher bands.

Spectrum costs and pricing

Spectrum fees are a significant ongoing cost for operators. Upfront payments are typically amortised over the assignment period, while annual fees are a recurring expense. Analysts track these costs because they can affect earnings and, indirectly, how aggressively operators compete on price. The HLIB view suggests these particular awards should not materially change the cost picture, since they reduce the need for other network spending.

What it means for Malaysians

For mobile users and businesses, additional spectrum could bring:

1. Better network capacity in busy areas such as city centres, malls and events, where congestion slows speeds.
2. Improved indoor coverage, especially from lower bands like 900MHz.
3. Steadier service as data use keeps growing from video, gaming and cloud apps.
4. Pricing questions: analysts see costs as manageable, so large price increases are not necessarily expected, but plans and promotions will depend on competition.

For SMEs that rely on mobile data for payments, deliveries or remote work, more network capacity can mean fewer dropped connections at peak times. For more on connectivity choices for devices, see our guide on choosing IoT connectivity.

What to watch

Watch for how quickly the operators deploy the new spectrum and whether users notice improvements in speed and coverage. Updates on 5G rollout and wholesale arrangements will also shape the market in 2027.