KUALA LUMPUR (Oct 3): Maxis Bhd (KL:MAXIS) said it has accepted a spectrum assignment offer from the Malaysian Communications and Multimedia Commission (MCMC) for RM400 million.

The telecommunications group said in a brief bourse filing that it is getting the offer for 2X10MHz block of 2100MHz spectrum with an upfront payment of RM100 million, and cumulative annual payments of RM300 million "for the entire assignment period". However, it did not indicate how long this period would be.

The 2100MHz frequency band, often referred to as Band 1, is primarily used for carrying 4G traffic and helping to boost network capacity, especially in dense urban areas.

Previously, Maxis accepted the offer for 2x10MHz spectrum in the 2600MHz band — a primary band for 4G LTE, with higher capacity and speed — for five years from July 1, 2022. The price component payment or upfront fee for the assigned spectrum was RM11.76 million, while total annual fees for the five years were fixed at RM20.76 million.

Maxis’ share price settled one sen or 0.27% higher at RM3.71 on Friday, giving the group a market capitalisation of RM29.07 billion.