© Reuters. FILE PHOTO: An advertisement for operator U Mobile’s 5G network is pictured 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 network from next year, four sources told Reuters, in the latest policy change aimed at dismantling monopolies and promoting competition by the six-month administration. of Prime Minister Anwar Ibrahim. .
The launch of 5G in Malaysia by state agency Digital Nasional Berhad (DNB) has seen repeated delays since its launch in December 2021 due to industry concerns about pricing and transparency, as well as concerns that a single government-run network would result in a nationalized monopoly. .
Since taking office in November last year, Anwar has ordered reviews of billions of dollars in government projects as he seeks to strengthen governance and minimize wasteful spending. He also promised to boost competition to ensure better services for the public.
Anwar’s government now plans to introduce a second 5G network from January 2024 to challenge DNB’s blockade of the market, four sources familiar with the discussions told Reuters, who declined to be named due to the sensitivity of the matter.
The Ministry of Communications and Digital told Reuters that a decision on 5G has not yet been made.
“The matter is still under review,” Ahmad Firdaus Mohd, the communications minister’s press secretary, said in a text message, without elaborating.
A recommendation from major carriers for a second 5G provider was rejected by the previous government in March last year. DNB rolled out its network at the end of 2021 with the participation of two telecommunications companies on a trial basis.
After months of protracted talks, all but one of the country’s five mobile operators agreed in October to use DNB’s network, opening up 5G services to more customers.
However, the rollout came under scrutiny again after Anwar took office in November and announced a review of the 5G plan, saying the previous administration had not formulated it transparently. DNB denied that claim.
The plan for a second network will depend on DNB and mobile operators ensuring that 5G network coverage reaches the government’s target of 80% of the country’s populated areas by the end of this year, the sources said.
A proposal on the plan is expected to go to the cabinet on Wednesday, two of the sources said.
Four Malaysian telecommunications companies — 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. CelcomDigi directed further inquiries to the government.
Communications Minister Fahmi Fadzil said on Friday that he expected to raise 5G issues in the cabinet this week, media reported. Fahmi also said last week that 5G network coverage had reached 55% in populated areas.
DNB has said that a single network would reduce costs, improve efficiency and speed up infrastructure construction.
It was not clear how the proposal for a second 5G network would affect DNB’s existing agreements with its development partner, Swedish telecoms giant Ericsson (BS:), and other mobile operators.
Three carriers – CelcomDigi, Telekom and YTL – agreed last year to acquire a collective 65% stake in the agency, with the government holding the remaining 35%.
Two major mobile operators, Maxis and U Mobile, have refused to take shares in DNB, Reuters reported.
Subsequently, U Mobile joined other telecommunication companies in registering to access DNB’s 5G network. Maxis has said it will wait until the government’s review of DNB is complete.