Digi accepts spectrum bands

PETALING JAYA: Digi.com Bhd’s wholly owned subsidiary Digi Telecommunications Sdn Bhd (DTSB) yesterday accepted the offer in respect of the spectrum assignments (SA) for 2x5MHz of 900MHz and 2x20MHz of 1800MHz spectrum bands to DTSB for 15 years effective July 1, 2017.
The payment for the one-time fee component amounting RM598.55 million was made within the deadline stipulated by MCMC, which was yesterday.
“The board of directors of Digi has decided to fund the one-time fee component mainly through its existing borrowing facilities and to maintain healthy net debt-to-ebitda ratio below 1.0 time,” Digi said in a stock exchange filing yesterday.
The borrowings are not expected to have material impact on Digi’s consolidated earnings, earnings per share and net assets.
DTSB had received a letter of offer dated Aug 30, 2016 from the Malaysian Communications and Multimedia Commission in respect of the allocation of the 900MHz and 1800MHz bands.
The spectrum fee consists of two components, which are the price component of RM598.55 million and annual fee component of RM51.48 million.