Malaysia

DNB expects to charge telcos under 20 sen per GB for 5G access: Tengku Zafrul

This is cheaper than cost of producing a gigabyte under 4G network, says finance minister

Updated 4 years ago · Published on 25 Nov 2021 11:18AM

DNB expects to charge telcos under 20 sen per GB for 5G access: Tengku Zafrul
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz says in Parliament today that the Malaysian Communications and Multimedia Commission is still in the midst of studying DNB’s 5G network pricing for mobile network operators. – Bernama pic, November 25, 2021

by Azril Annuar

KUALA LUMPUR – The government’s special purpose vehicle (SPV) on the 5G roll-out – Digital Nasional Bhd (DNB) – is expected to charge telecommunication companies less than 20 sen per gigabyte (GB), Parliament was told today.

In his reply to a query by Lukanisman Awang Sauni (Sibuti-GPS), Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz added that the 5G cost per gigabyte charged by DNB is less than the cost that telco companies are paying per gigabyte under the current 4G network.

“DNB is charging less than 20 sen for each gigabyte under the 5G network sold to each operator, cheaper when compared with the cost of producing a gigabyte under their 4G network, which is around 45 to 55 sen per gigabyte.

“I believe the telcos will welcome this,” said Tengku Zafrul.

As a result, the senator also expects the public to pay a lot less to access the 5G network than it does for the current 4G network.

However, the Malaysian Communications and Multimedia Commission is still in the midst of studying DNB’s pricing for mobile network operators.

Tengku Zafrul estimates that telcos will have to pay around RM3.5 billion to RM4 billion to DNB over a period of 10 years, adding that this is a lot cheaper when compared with telcos developing their own 5G network infrastructure.

“Telcos are expected to pay DNB between RM3.5 billion to RM4 billion in the next 10 years or around RM350 million to RM400 million a year. This is far lower than the cost of RM1 billion a year that telcos will have to invest (in the 5G network).

“This means that they will save more than 50% and that savings can mean reduced service prices for their customers and users. They can also pay more dividends to their shareholders,” said Tengku Zafrul.

DNB has been receiving brickbats from various parties, with many accusing the SPV of monopolising Malaysia’s 5G development.

However, the single wholesale network operator has maintained that it will not be a telco player but is only developing the network infrastructure. – The Vibes, November 25, 2021

Related News

Opinion / 1y

Two tales by  two ministers over DNB

Business / 2y

5G: mobile network operators expected to sign SSA with DNB this month

Malaysia / 2y

Telcos to ink deal on equity stakes in DNB soon, says Fahmi

Business / 2y

DNB slated to finalise equity holdings in firm tomorrow: Fahmi

Business / 2y

‘Maxis’ participation in DNB shows recognition of cost effectiveness’

Business / 3y

Access deal with DNB done, equity talks being finalised: Fahmi

Spotlight

Malaysia

Anwar, Zahid project unity at Putrajaya amid PH-BN differences during state polls

By Alfian Z.M. Tahir

Malaysia

Police looking for two robbery suspects who kicked elderly woman (video)

Malaysia

Malaysia will not bow to US congressional pressure over Israeli nationals’ issue - Loke (UPDATED)

Malaysia

Deaf e-hailing driver sues government, police over alleged assault, seeks disability access reforms

By Alfian Z.M. Tahir

Malaysia

Johor appoints 10 deputy exco to strengthen administration

Malaysia

Suspended police corporal charged with sexual assault of 11-year-old daughter

Malaysia

Magnitude 5.7 earthquake off northern Sumatra felt across west coast of Peninsular Malaysia

World

Trump approves potential US-Saudi nuclear deal allowing uranium enrichment capability

Malaysia

Network School moves to Kazakhstan

You may be interested

Malaysia

PETROS begins first oil production as Sarawak pushes to expand role in Malaysia’s energy sector

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Court orders police to probe foreign management institute

Malaysia

Deaf e-hailing driver sues government, police over alleged assault, seeks disability access reforms

By Alfian Z.M. Tahir

Malaysia

Anwar signals release of Tabung Haji RCI report

Malaysia

Targeted diesel subsidy to cost billions but help reduce leakages - MOF

Malaysia

PRNNS: No place for race-based, hatred campaigns in Negeri – Aminuddin

Malaysia

PH promises high-tech future for Negeri Sembilan with new economic growth corridor plan