Malaysia will continue to roll out 5G with state agency Digital Nasional Berhad (DNB) until 80% population coverage is achieved, at which point it will switch to a dual wholesale network model, as stated by Communications and Digital Minister Fahmi Fadzil. The transition to a dual network system is scheduled to begin early next year.
“This model takes into account the sustainability of the telecommunications industry ecosystem in Malaysia while ending the monopoly that is frequently associated with DNB,” he told reporters at his ministry on 3 May.
He expressed confidence that the 80% goal will be completed by the end of the year, despite the fact that the rollout is now projected to be at 57.8%, with approximately 2,000 sites remaining.
According to the ministry’s analyses, having numerous networks will avoid the problem of single point failures and will not have a negative impact on speed, but will instead enhance capacity beyond forecasts and assure interoperability.
“We are ensuring interoperability so in case one network was affected for whatever reason, there’s a fallback network,” he said.
He also stated that the government’s first objective is to ensure that people can afford to use the services.
The ministry will collaborate with the Ministry of Finance (MoF), DNB, and service providers to ensure that the transition to the dual network system is smooth and does not compromise people’s interests or investor confidence.
DNB controls Malaysia’s 5G spectrum. It has been charged with developing Malaysia’s 5G infrastructures and leasing it to telecom operators under the SWN model. It is expected to reach 80% coverage by the end of 2023, up from 50% by the end of 2022.
The government owns 35% of the corporation, while the remaining 65% is split between Celcom Axiata Bhd (12.5%), Digi Telecommunications Sdn Bhd (12.5%), YTL Communications Sdn Bhd (20%), and Telekom Malaysia Bhd (20%).
DNB was founded in early March 2021 to help Malaysia speed the implementation of 5G infrastructure and networks. It will provide 5G network services to other telecoms as a wholesale network service.
CelcomDigi has terminated its share subscription agreement with Digital Nasional Berhad (DNB) via Bursa Malaysia. This follows the announcement by the Malaysian government that it will shift to a Dual Network model for 5G development.
Following the government’s decision to switch from a single wholesale network to a dual 5G network model, TM announced the termination of its Share Subscription Agreement (SSA) with Digital Nasional Berhad (DNB). However, TM has promised existing Unifi users that they will be able to continue using 5G services as long as the present 5G access agreement with DNB remains in place.
TM inked the SSA in October last year, taking a 20% interest in DNB alongside YTL Communications (20%) and CelcomDigi (25%). However, the longstop deadline for meeting all conditions has passed, and TM has sent DNB a termination letter.
Fahmi said on 11 May at the ‘Majlis Sekalung Budi with the Minister’ at Angkasapuri, that the country’s 5G network implementation had reached 61.7% as of April 30.
“So, it’s (the 5G implementation) progressing and we expect to reach 80% by the end of the year.
“When we reach 80%, we will transition from a single wholesale network to dual network,” he said.
“After the government announced a new direction for the development and implementation of the 5G network in Malaysia, TM had to inform Bursa Malaysia that the previous discussion has stopped and everything that was previously agreed upon has been withdrawn.”
“However, new discussions will start. They (Telco companies) can start a fresh discussion because the terms are different now,” he ended his statement, mentioning that a task force will be formed to monitor the country’s 5G network implementation process.
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