EXCL - To join 700Mhz auction

EXCL - To join 700Mhz auction XL Axiata (EXCL) is planning to join an upcoming auction of a 700Mhz spectrum in order to optimize its data service quality, following the completion of Analog Switch Off (ASO). The spectrum was formerly used by MNC TV (MNCN) for broadcasting purpose before being freed up for 5G use. (Source : Selular) Comment : Although 5G technology has yet to be widely rolled out to the general public, we deem the ownership of bandwidth on a 700Mhz, dubbed to be "the golden band" is crucial to fully optimize its data speed on 5G as the spectrum is globally standardized. Furthermore, the 700Mhz spectrum that is categorized as low band frequency, allows it to be more efficient in 5G network deployment thanks to its unique characteristic to reach wider coverage with fewer tower cell. With such unique characteristics, in other countries, the spectrum is often auctioned with higher price. Nevertheless, there could be hope that government will be more considerate for setting the auction price to incentivize 5G use.