Malaysia plans to set up second 5G network from next year -sources By Reuters

(This April 16 story has been corrected to say “setbacks”, not “delays”, in paragraph 2)

By Rozanna Latiff and Yantoultra Ngui

KUALA LUMPUR/SINGAPORE (Reuters) – Malaysia plans to introduce a second 5G community from subsequent yr, 4 sources advised 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 setbacks due to trade considerations 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 opinions of billions of {dollars} in authorities initiatives as he seems to be to strengthen governance and minimise wasteful spending. He has additionally vowed to spice up competitors to make sure higher companies for the general public. 

Anwar’s authorities is now planning to introduce a second 5G community from January 2024 to problem DNB’s lock in the marketplace, 4 sources acquainted with discussions advised Reuters, declining to be recognized as a result of sensitivity of the matter.

The communications and digital ministry advised Reuters no resolution has but been made on 5G.

“The matter remains to be beneath overview,” Ahmad Firdaus Mohd, press secretary to the communications minister, stated 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 companies 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 companies to extra prospects.

The roll-out got here beneath 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 stated.

A proposal on the plan is predicted to be submitted to the cupboard on Wednesday, two of the sources stated.

4 Malaysian telco companies – Maxis Bhd, U Cell, 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 stated on Friday he hoped to lift 5G issues in cupboard this week, media reported. Fahmi additionally stated final week 5G community protection had reached 55% in populated areas.

DNB has stated a single community would scale 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 improvement companion Swedish telecoms large 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 Cell – declined to take up fairness in DNB, Reuters reported.

U Cell later joined different telco companies in signing as much as entry DNB’s 5G community. Maxis has stated it should wait till the federal government overview of DNB is accomplished.