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

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