KUALA LUMPUR – The shift from a single wholesale network to a dual network for 5G rollout in 2024 is set to benefit the industry with a variation of enterprise solution offerings by mobile network operators (MNOs), according to the Communications and Digital Ministry.
Its minister Fahmi Fadzil said the government’s decision to have a dual network for 5G is more on business consideration that allows MNOs to cater for different enterprise solutions that suit their specific customers.
“Any telecommunication company (telco) that has some control over infrastructure will be able to roll out specific enterprise solutions that might be suitable for their customers.
“Some telcos might be looking at certain sectors such as refinery in oil and gas (for their 5G services), whereas some might be looking at retails and certain types of factories,” he said in a media briefing on 5G direction recently.
According to Fahmi, the decision to switch to a dual network for 5G rollout was made after the review committee comprising representatives from Communications and Digital Ministry and the Finance Ministry conducted 19 engagement sessions with various parties including industry players.
“There were at least eight (5G network) models reviewed including some variations, hybrids and augmentation of past models.
“In the end, the cabinet decided that this is the model (dual network), which Digital National Bhd (DNB) remains and continues to complete 80% of 5G coverage of populated areas (CoPA) before subsequently shifting to a dual network model.
“I believe there are some arguments made about removing monopoly and also the question of sustainability of the telecommunication industry. For the government, the chief concern is that we honour whatever contract that has been signed and reached the target set before,” said Fahmi.
Meanwhile, Fahmi noted that as the target to reach 80% 5G coverage remained intact under DNB, the operation and development of its network will be continued by entity A. Entity B will then be formed with the participation of MNOs to complement the dual network model.
He added that there is no consensus yet on which telco or service providers will be part of entity B as the discussion is still ongoing.
“In general, the transition (to dual network) will start immediately after we reach 80% CoPA. We expect that by the beginning of next year entity B will start operations to build its network.
“Before the end of this year, we will know who will join entity B, where there is no government holding in entity B like there is in DNB,” he said.
According to Fahmi, upon being identified, entity B will start to build its own network to offer 5G services, while entity A will continue to operate.
“We will have two separate networks that will have more or less the same coverage,” he added.
On May 9, the ministry announced the establishment of a special task force to ensure the 80% CoPA target can be reached by the end of this year.
The task force will be jointly chaired by Treasury Secretary-General Datuk Johan Mahmood Merican and Communciations and Digital Ministry Secretary-General Datuk Mohamad Fauzi Md Isa with the Malaysian Communications and Multimedia Commission (MCMC) as the secretariat.
Fahmi said the task force will be meeting fortnightly to discuss issues involving the status of the 5G rollout and to ensure a smooth transition to the dual network model in early 2024.
“They will then report to me and I will present (the outcome) to the cabinet meeting.
“But of course, the main focus of the task force would be to ensure that 5G rollout in the country is expedited (to meet the target),” he added.
Fahmi also highlighted that as of April 30, the total 5G coverage nationwide has reached 59.5% of populated areas, an increase from 57.8% as of the end of March this year. – Bernama, May 17, 2023
