Malaysia to decide 5 G network in January

KUALA LUMPUR: Malaysia is going to decide on its plan for a single wholesale 5 G network in January, after it was reported by mobile carriers over pricing and transparency.

According to Annuar Musa, Communications and Multimedia Minister Annuar Musa, the Cabinet was considering whether to allow multiple 5 G providers, or allow more than one operator to allow competition, despite the fact that the government plan could hamper competition.

Annuar said that Digital Nasional Berhad DNB, a wholly state-owned agency with responsibility for building and managing 5 G infrastructure, will begin with an initial roll out this month.

DNB and major mobile operators Axiata Celcom and Maxis did not respond immediately to requests for comment. DiGi.com did not make a statement.

Jim Lim, an analyst at Kuala Lumpur-based Kenanga Research, said that government discussions indicated progress in talks between operators and DNB, and authorities willingness to compromise on carriers' demands.

The more certainty the future operating environment will be for the telcos, the faster the government makes a decision on this, he said in an email.

In February the government decided to reduce costs, improve efficiency, and speed up infrastructure buildup by removing an earlier plan to apportion spectrum to carriers.

Carriers are worried that it will result in a nationalised monopoly more costly than deploying 5 G on their own, sources told Reuters.

DNB has said it will charge operators less to access its 5 G network than the cost it incurred for 4 G.

The agency has offered 5 G services to carriers for free up to March 31 as it begins network deployment in three central areas.

Last week, Telekom Malaysia was the first operator to sign up for 5 G trials with DNB, but did not say if it had signed a long-term deal.