Malaysia plans to introduce second 5G network in 2024 - sources

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Malaysia plans to introduce second 5G network in 2024 - sources

KUALA LUMPOR SINGAPORE Malaysia plans to introduce a second 5G network from next year, four sources told Reuters, in the latest policy shake-up aimed at dismantling monopolies and promoting competition by Prime Minister Anwar Ibrahim's six-month-old administration.

The 5G roll-out of Malaysia's state agency, Digital Nasional Berhad DNB, has faced repeated delays since its introduction in December 2021 because of industry concerns over prices and transparency, as well as fears that a single government-run network would result in a nationalized monopoly.

Anwar has ordered reviews of billions of dollars in government projects since he took office in November last year, aiming to strengthen governance and reduce wasteful spending. He has vowed to boost competition to provide better services to the public.

Anwar's government is now planning to introduce a second 5G network from January 2024 to counter DNB's lock on the market, four sources familiar with discussions told Reuters, declining to be identified due to the sensitivity of the matter.

The communication and digital ministry said no decision has yet been made on 5G.

The matter is still under review, said the press secretary to the Communications Minister, Ahmad Firdaus Mohd, without elaborating.

A major carrier proposal for a second 5G provider was rejected by the previous government in March last year. In late 2021, DNB launched its network with the participation of two telecommunications firms.

After months of talks, all but one of the country's five mobile operators agreed in October to use DNB's network, opening up 5 G services to more customers.

However, the roll-out came 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 that claim.

The plan for a second network is contingent on DNB and mobile operators ensuring that 5G network coveragereaches the government's target of 80 per cent of the country's populated areas by the end of this year, the sources said.

A proposal on the plan is expected to be submitted to the cabinet on Wednesday, two sources said.

Four Malaysian telecom firms - Maxis Bhd, U Mobile, Telekom Malaysia and YTL Communications - did not immediately respond to requests for comment.

DNB and a fifth firm, CelcomDigi, declined to comment. The government further directed CelcomDigi to the government.

Communications Minister Fahmi Fadzil said on Friday that he hoped to raise 5 G issues in his cabinet this week. Last week, Fahmi said 5G network coverage had reached 55 per cent in populated areas.

A single network would reduce expenses, improve efficiency, and accelerate the construction of infrastructure.

It was not clear how the proposal for a second 5G network would affect DNB's existing agreements with its development partner Sweden telecoms giant Ericsson and other mobile operators.

Three airlines - CelcomDigi, Telekom and YTL - agreed to take up a collective 65 percent share of the agency last year, with the government holding a remaining 35 percent.

Two major mobile operators - Maxis and U Mobile - declined to take up equity in DNB, Reuters reported.

U Mobile later joined other telco firms in signing up to access DNB's 5 G network. Maxis said it would wait until the government review of the DNB is completed.