KUALA LUMPUR: The assignment of the 2.6 GHz spectrum to DiGi to strengthen its longer-term data and mobile broadband roadmap and offerings, while allowing a seamless migratory path for its 3G/HSPA network, is being viewed positively by OSK Research Sdn Bhd (OSK Research).
Recently, DiGi announced its wholly-owned subsidiary, DiGi Telecommunications Sdn Bhd submitted a detailed business plan to the Malaysian Communications and Multimedia Commission (MCMC) in respect of its application for spectrum in the 2,600 Mhz band.
“The submission of the business plan is a condition attached to the earlier provisional letter of award issued by the Malaysian Communications and Multimedia Commission in October 2010.
“We gather that the 2.6Ghz band, only effective from Jan 1, 2013, will be allocated as part of the spectrum refarming exercise slated later this year,” it said.
OSK Research said DiGi was also aggressively vying for the valuable 900Mhz spectrum, which the telco stood a good chance of securing, given the company’s strong operational and financial track record.
It is maintaining a ‘neutral’ stance on the company with a target price of RM25.08 per share and is hopeful that DiGi may declare a special dividend for the final quarter, pending results that will be released at month-end.
Seven other companies assigned the spectrum include Celcom Axiata, Maxis, U-Mobile, YTL, Packet One, Asiaspace, Rectone and an unknown outfit, Puncak Semangat. — Bernama