© Reuters. FILE PHOTO: An advertisement for the 5G network is shown by U Mobile in Kuala Lumpur, Malaysia, September 26, 2022. REUTERS/Hasnoor Hussain
Written by Rosanna Latev and Yantoltra Ngoy
KUALA LUMPUR/SINGAPORE (Reuters) – Malaysia plans to introduce a second 5G network from next year in the latest policy shakeup aimed at breaking up monopolies and boosting competition by Prime Minister Anwar Ibrahim’s six-month administration, four sources told Reuters. .
Malaysia’s rollout of 5G by state agency Digital Nasional Berhad (DNB) has seen repeated delays since its launch in December 2021 due to industry concerns over pricing and transparency, as well as concerns that a single government-run network could lead to a nationalized monopoly. .
Since taking office in November last year, Anwar has ordered reviews of billions of dollars in government projects as he looks to strengthen governance and reduce wasteful spending. He also pledged to promote competition to ensure better services for the public.
Four sources familiar with the discussions told Reuters, speaking on condition of anonymity due to the sensitivity of the matter, that the Anwar government is now planning to introduce a second 5G network from January 2024 to challenge the DNB closing in the market.
The Ministry of Communications and Digital told Reuters that no decision had been taken regarding the fifth generation network.
“The matter is still under review,” Ahmed Ferdous Mohamed, press secretary to the Minister of Communications, said in a text message, without going into details.
The previous government rejected a recommendation from major carriers for a second 5G provider in March last year. DNB deployed its network in late 2021 with the participation of two telecom companies on a trial basis.
After months of lengthy talks, all but one of the country’s five mobile operators agreed in October to use the DNB network, opening up 5G services to more customers.
However, the launch process has come under scrutiny again, after Anwar took office in November and announced a review of the 5G plan, saying it had not been formulated transparently by the previous administration. DNB denied this allegation.
The sources said the second network plan will hinge on DNB and mobile operators to ensure that 5G network coverage reaches the government’s target of 80% of populated areas in the country by the end of this year.
Two sources said a proposal on the plan is expected to be presented to the cabinet on Wednesday.
Four Malaysian telecom companies – Maxis Bhd, U Mobile, Telekom Malaysia and YTL Communications – did not immediately respond to requests for comment.
DNB and a fifth company CelcomDigi declined to comment. CelcomDigi directed further inquiries to the government.
Communications Minister Fahmy Fadil said on Friday that he hopes to raise 5G issues in the cabinet this week, media reported. Fahmy also said last week that 5G network coverage has reached 55% in populated areas.
DNB said a single network would reduce costs, improve efficiency and speed up infrastructure construction.
It was not clear how the second 5G network proposal would affect DNB’s existing agreements with its development partner, Swedish telecoms giant Ericsson (BS:), and other mobile operators.
Three carriers – CelcomDigi, Telekom and YTL – agreed last year to acquire a collective 65% stake in the agency, with the government owning the remaining 35%.
Reuters reports that two major mobile operators – Maxis and U Mobile – have refused to take shares in DNB.
U Mobile later joined other carriers in signing up to access DNB’s 5G network. Maxis said it will wait until the government’s review of the DNB is complete.