Malaysia to finalize single 5G network decision
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Malaysia will finalize plans to pursue a single wholesale 5G network by January. This week, Malaysia’s communications minister Annuar Musa revealed that the cabinet is considering allowing several 5G providers after telcos voiced concerns that this would stifle competition.
In February, the government announced plans to switch to a single wholesale network after initial plans to apportion spectrum to telcos. Under the existing plan, Digital Nasional Berhad (DNB), a state-owned company is mandated to deploy a national network to speed up 5G deployment and reduce deployment costs. However, this could risk hampering Malaysia’s digital competitiveness.
In September, Julain Gorman, head of Asia Pacific, GSMA said, “Malaysia has a thriving mobile economy and a growing digital sector, but the Single Wholesale Network model proposal risks that. 5G technology is ready to be deployed rapidly, and Malaysian operators have already made significant infrastructure investments.”
The GSMA expressed that “a nationalized monopoly will replace the competitive wholesale market” and render the industry “entirely reliant on wholesale access from DNB for 5G services”.
In the meantime, DNB will be offering wholesale 5G services to telcos for free. This would commence next week and end 31 March 2021.
Questions & Answers
Q.What is the primary concern raised by telcos regarding the single wholesale 5G network plan?
What is the primary concern raised by telcos regarding the single wholesale 5G network plan?
Telcos are concerned that a single wholesale 5G network model would stifle competition within Malaysia's telecommunications industry. This model could create a nationalised monopoly, making them entirely reliant on DNB for 5G services.
Q.When did the Malaysian government initially announce plans to use a single wholesale network for 5G?
When did the Malaysian government initially announce plans to use a single wholesale network for 5G?
The Malaysian government announced its plans to switch to a single wholesale network for 5G back in February. This decision came after initial intentions to apportion spectrum directly to various telcos.
Q.Who is currently mandated to deploy the national 5G network under the existing plan?
Who is currently mandated to deploy the national 5G network under the existing plan?
Digital Nasional Berhad (DNB), a state-owned company, is mandated to deploy the national 5G network. Its purpose is to speed up 5G deployment across Malaysia and reduce overall deployment costs.
Q.How will DNB provide its wholesale 5G services to telcos in the short term?
How will DNB provide its wholesale 5G services to telcos in the short term?
DNB will be offering wholesale 5G services to telcos for free. This free service is set to commence next week and will continue until its planned conclusion on 31 March 2021.