KUALA LUMPUR – Augustus Ralph Marshall’s term as Digital Nasional Bhd’s (DNB) chief executive ended earlier this week.
It is learnt that Marshall’s contract ended on March 11, and had not been extended beforehand.
It is also understood that the CEO’s role in the government’s special purpose vehicle for the nation’s 5G roll-out is temporarily being split between two officials.
The Vibes understands that several candidates have already been lined up as a replacement.
The new CEO’s challenge will be to implement the unity government’s target of 80% coverage by the end of this year instead of the earlier target of the end of 2024.
Marshall, who led the roll-out of Maxis and Astro Networks, was appointed DNB’s CEO in March 2021.
Marshall’s departure from DNB comes at a critical juncture for the 5G network roll-out, as the country was initially left behind its neighbours, with Malaysian mobile consumers paying one of the highest rates for 4G connectivity in the Asean region.
In December 2019, the government had decided on using the single wholesale network (SWN) model for 5G after taking into account that the nation's 4G roll-out took nearly seven years to reach 80% coverage of populated areas (COPA).
In the first two years, the nation’s 4G COPA stood at only 28%.
However, in less than two years, DNB has achieved COPA of more than 50%.
On Monday, Deputy Communications and Digital Minister Teo Nie Ching told the Dewan Rakyat that the implementation of 5G services is at 54.7%, and the ministry is confident of achieving its target of 80% coverage for populated areas like Cameron Highlands in Pahang and Sibu in Sarawak by the end of this year.
Earlier today, it was reported that DNB’s offer of ultra-fast broadband connectivity to telecommunications companies (telcos) for only RM0.13 per GB is among the lowest rate for such services globally.
An insider, who declined to be named, said DNB’s blended wholesale price to the telcos which was between 12 sen and 13 sen per GB, as mentioned by Teo in the Dewan Rakyat on Monday, was the “cheapest in the world”.
“A dual wholesale network is expected to produce 5G capacity at a cost over 50% higher than the SWN,” the insider said of Malaysia’s government-run model for the roll-out.
"Indeed, the low 5G wholesale cost to telcos will translate into lower prices for users, both consumers and enterprises. Already, 5G unlimited data packages in Malaysia are some of the lowest priced in the world.”
Teo said the RM0.13 rate offered by DNB was done through a reference cost offer, lower than the current cost of 5G services at RM1.68 per GB.
According to Bernama, the move to expand 5G network coverage, which the government announced under Budget 2023, can further lower the internet prices currently offered to users.
Last year, the government offered up to 70% equity in DNB to the telcos. In October 2022, Celcom, Digi, TM, and YTL executed share subscription agreements to take up 65% equity in DNB, with the government holding 35% and a golden share.
Also in October 2022, five telcos executed access agreements with DNB to buy 5G wholesale capacity over 10 years.
The development of subscription agreements comes after extensive discussions between the MNOs and DNB, with some of the telcos insisting on having an alternative 5G provider under a dual-wholesale network system. – The Vibes, March 16, 2023
