Digital terrestrial TV tender: So what’s up, really?: Page 2 of 2

Digital terrestrial TV tender: So what’s up, really?: Page 2 of 2Puncak Semangat gets more time
Meanwhile, the MCMC is giving Puncak Semangat some breathing space. While in the tender submissions, Dec 31 2015 was mentioned as the ASO date, MCMC’s press release from Jan 8 2014 made no mention of this deadline.
When DNA requested for clarification here on the ASO, the MCMC said, “The ASO date is subject to the progress development of DTTB. We will study the ASO date.”
However, it is unclear how giving Puncak Semangat more time will help it prepare a better business case.
DNA also asked MCMC if it imposed any conditions on Puncak Semangat in awarding it the Common Integrated Infrastructure Provider (CIIP) contract.

The MCMC highlighted eight conditions, including a financial one involving RM12,500,000 per multiplexer or MUX, with Puncak Semangat required to build at least three.

An MUX is essentially a hub that takes all the feeds from different broadcasters and transmits them via the single DTTB network.

The eight conditions imposed on Puncak Semangat are:

  • The Apparatus Assignment (AAs) to be issued for the implementation of DTTB service will be in the same spectrum band currently occupied by the analogue TV Content Application Service Providers (CASPs) and other services. The said AA(s) will only be issued upon successful technical analysis;
  • The requirement to build up to three national MUXs (multiplexers);
  • Adherence to current or future coordination agreements with neighbouring countries, frequency repacking or rearrangements;
  • The first five-year period of the DBP (detailed business plan) shall form a binding commitment of the successful applicant to the MCMC upon issuance of the AA(s), and any deviation there from may attract penalties as stipulated. The remaining period of the DBP shall be implemented as best to reflect the intent of the applicant for implementation of DTTB services at the point of submission. The successful applicant may be permitted to modify the subsequent ten years of the period of the DBP, upon prior written approval by the MCMC;
  • Compliance to the rollout plan and other commitments made pursuant to the DBP;
  • The successful applicant shall provide an Irrevocable Bank Guarantee (IBG) from a licensed financial institution in Malaysia, for the amount of RM12.5 million per MUX in form and substance to be agreed by the MCMC. The IBG shall be valid and maintained at the prescribed amount for the duration of 15 years from the date of successful application to guarantee performance of the DBP, payable on demand, either in part or in full;
  • The successful applicant shall apply for an AA(s) for each apparatus in the geographic areas (SFN regions) and pay the application and assignment fees as prescribed in the Spectrum Regulations; and
  • The successful applicant is to strictly comply with the relevant provisions in the CMA 98 (Communications and Multimedia Act 1998), the Spectrum Regulations, the Mandatory Standard for Free to Air Transmission of Digital Terrestrial Television and any other legislations or instruments issued or may be issued by the Minister and/or the MCMC from time to time.

That being said, while the MCMC is stressing that it will hold Puncak Semangat to the conditions of the DTTB contract, there are some major sceptics out there.
This is especially true among the telco players which feel that the real prize the company is after is the 700MHz spectrum that will become available when the migration of broadcast services from analogue to digital is completed, and a large chunk of the so-called Digital Dividend is freed up for more productive use.
Next up: Is Puncak’s DTTB bid a Trojan Horse for the 700MHz spectrum gold mine?
Related stories:
Syed Mokhtar company wins digital terrestial TV tender
It’s spectrum rebalancing: MCMC on 2.6Ghz allocation

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