KUALA LUMPUR, June 28 — Opposition MP Wan Ahmad Fayhsal Wan Ahmad Kamal has alleged that the federal government’s plan to set up a second 5G network is flawed, claiming a conflict of interest among the many candidates.
As introduced by Communications Minister Fahmi Fadzil lately, Malaysia has began the method of transitioning from a 5G single wholesale network to a Dual Network mannequin, and the Malaysian Communications and Multimedia Commission (MCMC) has been instructed to begin the tender course of for the second network on July 1, 2024.
According to Wan Fayhsal, the federal government could also be making a conflict of interest by appointing a telco, presently taking part in DNB, to build a competing 5G network. He shared that telcos taking part in Digital Nasional Berhad (through share subscription settlement) would have entry to inside info of all technical, monetary and authorized due diligence carried out on DNB. As a end result, this offers the telcos an unfair benefit over DNB.
The Machang MP added that with Maxis, CelcomDigi, and U Mobile representatives on DNB’s board of administrators, they might have a say within the administration of DNB, which they may use to their benefit when constructing and working the second 5G network. He additionally stated that given CelcomDigi, Maxis and U Mobile collectively management 90 per cent market share of the cell telco subscriptions, the profitable applicant could be certain to channel their subscribers to the second 5G network, creating a drawback to DNB.
He urged the federal government to rethink the second 5G network course of and reminded them of their position in defending companies and shoppers by regulating honest competitors and guaranteeing value competitiveness. He claimed that the federal government’s motion plan to arrange the second 5G network has all of the hallmarks of doom and failure.
Full participation was required to transition to Dual 5G Network
Malaysia’s 5G twin network mannequin. — eNM pic
As introduced by Fahmi Fadzil again in May 2023, the Cabinet has determined that Malaysia will transition from a Single Wholesale Network to a Dual Network mannequin to keep away from a single level of failure and to set up redundancy for 5G. He added that the transfer may also dismantle DNB’s monopoly for 5G infrastructure, because it opens up alternative for different gamers to rollout 5G utilizing their current infrastructure.
Besides requiring DNB to obtain 80 per cent 5G inhabitants protection, the transition additionally requires all telcos to take part in DNB and to optimise their current infrastructure and sources. At the time, the plan to set up the second 5G network was anticipated to begin as early as January 2024.
When the shift to twin networks takes place, some telcos will stay in DNB (Entity A), whereas the remaining telcos will transfer to the second 5G network (Entity B) and divest their fairness in DNB.
At the tip of final 12 months, CelcomDigi, Maxis, U Mobile, TM and YTL Communications signed a Share Subscription Agreement to collectively purchase a 70 per cent stake in DNB. — eNM pic
Before 2023 got here to an in depth, 5 telcos particularly CelcomDigi, Maxis, U Mobile, TM and YTL Communications have signed a Share Subscription Agreement to collectively purchase a 70 per cent stake in DNB. Each telco could have to inject RM233 million to get a 14 per cent stake every. Meanwhile, the Malaysian authorities through the Ministry of Finance will proceed to retain a 30 per cent stake and a golden share.
This was the second try to get telcos to take a stake in DNB, because the earlier SSA signed in the course of the earlier administration had failed. This was due to the lengthy cease date to fulfil all of the situations precedent underneath the SSA has lapsed.
Last week, Digital Nasional Berhad introduced an necessary milestone had been reached as all of the situations precedent underneath the SSAs signed on December 1, 2023. The 4 telcos – CelcomDigi, Maxis, U Mobile and YTL Communications are anticipated to full the fairness deal course of this month. Meanwhile, TM requires extra time to get hold of its shareholders’ approval underneath its governance necessities.
Fahmi assures no-worse-off state of affairs with two 5G networks
Fahmi has assured that DNB will proceed to handle and broaden its 5G operations whereas the second 5G network is being developed. He added that every one telcos have agreed to a no-worse-off state of affairs for shoppers when it comes to high quality of service and value.
At the second, DNB has a claimed 5G inhabitants protection of 81.5 per cent. However, there are nonetheless no particulars of the network’s plan underneath the brand new administration construction, and what’s the following milestone for 5G protection growth together with indoor protection.
On June 21, Fahmi issued a Ministerial Direction (MD) to instruct MCMC to conduct the tender course of of the second carriers of the 700MHz and three.5GHz frequency bands for the implementation of the 5G Dual Network mannequin. However, the earlier MD issued by Saifuddin Abdullah in 2021 to appoint DNB as the only real 5G supplier has not but been revoked.
According to Fahmi, he’ll problem a brand new Ministerial Direction to cancel the 2021 MD at a later time as soon as the telco answerable for the second 5G network has been recognized. At the second, there are not any clear indications in regards to the authorities’s plan to divest its remaining 30 per cent stake in DNB and it nonetheless retains particular rights with its golden share.
The three large telcos – CelcomDigi, Maxis and U Mobile, have publicly introduced that they’re prepared to build the second 5G network. — eNM
