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5G network review seen as timely

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Photo: Andrea Warnecke/dpa

PETALING JAYA: The plan to review the 5G network by the Prime Minister is a welcome move, but it should go beyond addressing the transparency of contract awards.

There is a serious need to address the ability of a single wholesale network (SWN) to fulfil Malaysia’s digital ambitions when globally, even the smallest of nations have two or more 5G networks.

Several industry players were “shocked and yet pleasantly surprised” that a review was being called, as some had given up hope of any reversal of the monopoly that had been created for the 5G rollout.

They, therefore, applaud the move by the Prime Minister and hope that Malaysia will have more than one 5G network that can cater to the robust growth expected for 5G-based services in the future.

“Malaysia should emulate what other countries are doing and not champion risky causes to stick to an SWN. The mobile players should be given a chance to roll out 5G on their own networks, as it is a natural progression from their 4G networks instead of reducing them to only being service providers with the SWN,” said an industry executive who requested anonymity.

On Monday, Prime Minister Datuk Seri Anwar Ibrahim said his administration will review a plan for a state-owned 5G network introduced by the previous government as it was not formulated transparently.

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In a report, Digital Nasional Bhd (DNB) has insisted that the tender process for the 5G network rollout was done transparently.

DNB, the company undertaking the 5G rollout, added that the tender process was managed by Ernst & Young Consulting Sdn Bhd and it hopes the review will clear the air and enable full execution and implementation of the 5G rollout for the benefit of the nation.

At this juncture, it is not clear if the Prime Minister will just request for the contract review or a total review of the entire 5G network plans and the effect of an SWN on the nation. Some industry players are hoping it will be a total review for they felt the nation should have more than one 5G network.

Concerns have been raised since March 2021 when the government decided to get involved in the 5G rollout after leaving it previously to industry players that had invested billions of ringgit over the years to roll out their 2G, 3G and 4G networks.

Mobile operators have also been asked to take up stakes in DNB, with many forking out millions to have a small stake. But some players have refused to subscribe to equity stakes in DNB.

“The irony of it all is that these players now have to pay for the shares in DNB when they should be using the same money to roll out their own 5G networks,” said an industry executive.

DNB had also contracted Ericsson (M) Sdn Bhd to deliver the 5G SWN. The total cost reported was RM16.5bil over 10 years for the 5G network and infrastructure deployment.

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