Malaysia will deploy a second 5G network from as early as January, a decision that follows a months-long official review of the existing network after concerns of monopoly.
(Bloomberg) — Malaysia will deploy a second 5G network from as early as January, a decision that follows a months-long official review of the existing network after concerns of monopoly.
The switch to the dual network will happen after Digital Nasional Bhd. achieves 80% coverage to populated areas by the end of 2023, Communications Minister Fahmi Fadzil said in a briefing Wednesday. DNB has achieved 57.8% coverage and the administration is confident of reaching the target by year-end, he said.
The dual network will prevent any single point of failure and increase capacity, according to Fahmi. “This model also takes into account the sustainability of Malaysia’s telecommunication industry while ending elements of monopoly often linked to DNB,” he said in the administrative capital of Putrajaya.
The previous government formed DNB in 2021 to spearhead the 5G deployment via a single wholesale network, after scrapping an order to directly grant airwaves to certain telecommunication companies.
The company partnered with local unit of Swedish telecom major Ericsson AB to manage this for 11 billion ringgit ($2.5 billion), courting criticism from then-opposition leader Anwar Ibrahim over the cost and transparency.
Anwar ordered a review of the network plan shortly after taking power last year, as part of his efforts to weed out corruption and mismanagement. The review attracted lobbying attempts from Huawei Technologies Co. to secure contracts, prompting the US and EU to warn Malaysia of security risks, according to the Financial Times.
Fahmi said Wednesday he had no knowledge of interested parties when asked to comment on the matter. The composition of service providers for the second network would be decided later, he added.
“I don’t know who is eyeing the other contract, whether it’s Ericsson or Huawei,” he said. “I have said in parliament that I will entertain no lobby whether in or out of Malaysia because I’m not looking at the commercial considerations. My primary focus is that the ecosystem is sustainable and addresses the key concerns the cabinet has raised.”
Malaysia has become one of the 5G laggards in Southeast Asia, according to a report by OpenSignal last year. Mobile network operators in Malaysia have been slow to execute their access agreements to lease the network amid disputes over the stakes DNB offered to them.
Six companies eventually signed up in October last year, with Maxis Bhd. still holding out pending the government’s review.
DNB in January said that Malaysia’s 5G network has achieved almost 50% coverage of populated areas with some 3,900 sites as at end-2022.
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