Four domestic telecommunications companies have proposed to the government to set up two 5G wholesale networks, each of which will be built and operated by a consortium of the respective telecommunications companies.
The Ministry of Finance has set up the National Digital Network Berhad (DNB) to build and operate the 5G network in the country, and then wholesale the 5G network to the telecom companies in the country, which will then provide the 5G network to their customers. The decision has been highly criticized, with many fearing that it would create a monopoly for DNB and limit the possibilities for telecommunications companies to develop future technologies.
As of December 15, only two telcos have announced that they will participate in the DNB’s 5G network, namely TM Unifi and YTL YES, while Digi, Maxis, Celcom and U Mobile have not yet officially announced their participation in the DNB’s 5G network.
According to a Reuters report, Digi, Maxis, Celcom and U Mobile have met with government officials to discuss the second option. The four telecom companies have proposed to the government to set up a second 5G wholesale network, i.e. a consortium in addition to DNB to build the country’s 5G network. The consortium must be composed of telecommunications companies.
The telecom companies proposed that the 2 wholesale 5G networks be deployed and built in parallel by 2022. The four telecommunications companies believe that building the 5G networks separately will accelerate the development of 5G networks in the country. The telcos also propose to have the 5G wholesale networks compete with each other starting in 2023.
In addition, the telcos are desperately seeking to take a partial stake in DNB in order to have more say in the 5G plan.
According to a message from Communications and Multimedia Minister Tan Sri Annuar bin Musa, the government is reconsidering the single wholesale model for 5G networks after receiving feedback from telcos and industry players, and is expected to make a final decision next month.
