The government announced that it will maintain the single wholesale network for the rollout of 5G networks in the country!
The Ministry of Communications and Multimedia and the Ministry of Finance announced at a joint conference on March 16 that the government will continue to use the Single Wholesale Network (SWN) model for the rollout of 5G networks.
This announcement also means that the Dual Wholesale Network (DWN) model initiated by the country’s four telecommunications companies is no longer possible.
To appease the telcos, the government announced that it will allow them to hold 70% of the shares of Digital National Berhad (DNB), with the remaining 30% owned by the government. This means that the telcos will have the right to participate in DNB’s 5G construction and will no longer be in a passive position.
The so-called Single Wholesale Network (SWN) means that the state is responsible for building the 5G network, and all telecommunications companies doing business will not be allowed to build new facilities, but will complete their services through this network. It would be more cost-effective and the government would have better control over this critical infrastructure to ensure coverage in all corners of the country.
However, some industry players believe that this approach will make them passive and uncompetitive. The industry is concerned that having a national digital company provide all the 5G networks will hinder market competition. But now the government is allowing telecommunications companies to hold a stake in NDC, which is believed to reassure them.
