Digi and Celcom are currently the second and third largest mobile service operators in the country.

The MCMC said in a statement that it had conducted a “comprehensive assessment” of the proposed merger, with both Digi and Celcom expressing their commitment to overcoming issues surrounding competition which the MCMC raised.

MCMC said it had sent out a ‘statement of issues to applicants’ on April 1 in accordance with its mergers and acquisitions guidelines to address concerns that the merger would, or was likely to, significantly reduce competition in certain markets.

https://youtu.be/mHb34BW0upg

“Accordingly, the applicant (Digi and Celcom) has submitted an undertaking containing its commitment to overcome the competition issues that have been highlighted by MCMC in the statement of issues.

“MCMC has considered the commitment offered by the applicant and is satisfied that it will significantly reduce the competition issues that will, or may arise, as a result of this merger.”

The merger application was submitted to MCMC in July 2021.

In a joint statement, Digi and Celcom said the merged company would provide better network quality and coverage as it was set to invest in network expansion to support growing demand for data and digitalisation.

It also said it had offered a set of undertakings to ensure that consumers in Malaysia would continue to benefit from effective competition in the telecommunications sector.

Key among these undertakings is the divestment of its 70 MHz spectrum across 1800 MHz, 2100 MHz, and 2600 MHz, with the first band to be returned to MCMC within 24 months after completion of the merger, and the second and third bands to be returned within 36 months after completion of the merger.

“The parties have assured that they will place the highest priority on minimising any potential service quality impact to customers, while delivering these undertakings,” added the statement.

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