© Reuters. FILE PHOTO: An commercial of 5G community by U Cellular provider is displayed in Kuala Lumpur, Malaysia, September 26, 2022. REUTERS/Hasnoor Hussain
By Rozanna Latiff and Yantoultra Ngui
KUALA LUMPUR/SINGAPORE (Reuters) – Malaysia plans to introduce a second 5G community from subsequent yr, 4 sources instructed Reuters, within the newest coverage shake-up aimed toward dismantling monopolies and selling competitors by Prime Minister Anwar Ibrahim’s six-month-old administration.
Malaysia’s 5G roll-out by state company Digital Nasional Berhad (DNB) has seen repeated delays since its launch in December 2021 due to trade issues over pricing and transparency, in addition to worries {that a} single government-run community would lead to a nationalised monopoly.
Since taking workplace in November final yr, Anwar has ordered evaluations of billions of {dollars} in authorities tasks as he appears to be like to strengthen governance and minimise wasteful spending. He has additionally vowed to spice up competitors to make sure higher providers for the general public.
Anwar’s authorities is now planning to introduce a second 5G community from January 2024 to problem DNB’s lock available on the market, 4 sources accustomed to discussions instructed Reuters, declining to be recognized as a result of sensitivity of the matter.
The communications and digital ministry instructed Reuters no resolution has but been made on 5G.
“The matter continues to be underneath overview,” Ahmad Firdaus Mohd, press secretary to the communications minister, mentioned in a textual content message, with out elaborating.
A suggestion by main carriers for a second 5G supplier was rejected by the earlier authorities in March final yr. DNB deployed its community in late 2021 with the participation of two telecommunications corporations on a trial foundation.
After months of protracted talks, all however one of many nation’s 5 cellular operators agreed in October to make use of DNB’s community, opening 5G providers to extra clients.
The roll-out got here underneath scrutiny once more, nevertheless, after Anwar took workplace in November and introduced a overview of the 5G plan, saying it had not been formulated transparently by the earlier administration. DNB denied that declare.
The plan for a second community will probably be contingent on DNB and cellular operators making certain that 5G community protection reaches the federal government’s goal of 80% of the nation’s populated areas by the top of this yr, the sources mentioned.
A proposal on the plan is predicted to be submitted to the cupboard on Wednesday, two of the sources mentioned.
4 Malaysian telco corporations – Maxis Bhd, U Cellular, Telekom Malaysia and YTL Communications – didn’t instantly reply to requests for remark.
DNB and a fifth agency, CelcomDigi, declined to remark. CelcomDigi directed additional queries to the federal government.
Communications Minister Fahmi Fadzil mentioned on Friday he hoped to lift 5G issues in cupboard this week, media reported. Fahmi additionally mentioned final week 5G community protection had reached 55% in populated areas.
DNB has mentioned a single community would cut back prices, enhance effectivity and speed up the constructing of infrastructure.
It was not clear how the proposal for a second 5G community would have an effect on DNB’s current agreements with its growth associate Swedish telecoms big Ericsson (BS:), and different cellular operators.
Three carriers – CelcomDigi, Telekom and YTL – agreed final yr to take up a collective 65% stake within the company, with the federal government holding the remaining 35%.
Two main cellular operators – Maxis and U Cellular – declined to take up fairness in DNB, Reuters reported.
U Cellular later joined different telco corporations in signing as much as entry DNB’s 5G community. Maxis has mentioned it should wait till the federal government overview of DNB is accomplished.
