KUALA LUMPUR – The government is expected to make a decision on the wholesale network distribution of the 5G broadband spectrum as early as next week, said PKR communications chief Fahmi Fadzil.
He said multiple sources also revealed that negotiations are underway for major telecommunications companies to undertake an unrelated broadband spectrum deal under the condition that they obtain 5G services from Digital Nasional Bhd (DNB).
The Lembah Pantai MP said the mobile network operators (MNOs) involved in the latter agreement for the 2600 MHz LTE band could be tied to the deal for up to five years.
The spectrum is the third most popular band used by network providers due to its wide coverage.
“There is a clause (in the agreement) that I am made to understand that says ‘you get the (2600 MHz) spectrum, but you must get 5G services via the 5G wholesale service provided by DNB’,” Fahmi said.
So, in other words, it is a distinct situation where MCMC (Malaysian Communications and Multimedia Commission) is getting MNOs to sign for a spectrum unrelated to 5G, but has put a condition they will be given this spectrum, but you shall buy the 5G spectrum from DNB.”
Fahmi said the MNOs will have to sign the “sweetheart” deal by February 14.
The parliamentarian said this at a talk titled “5G: What Is The Best Way Forward for Malaysia?” organised by Universiti Malaya’s Computer Association.
Fahmi also noted concerns about the potential monopolising of the 5G services under a single wholesale network provider such as DNB, adding that infrastructure costs have “ballooned” to the tune of between RM16.5 to RM20 billion.
He said initially, the plan was said to have cost between RM5 and RM7.5 billion, but the figure grew to about RM11 billion and RM12.5 billion after the government courted Ericsson as the equipment provider.
“So from RM7.5 billion to roll out 5G across about 10,000 sites, now it has ballooned to RM16.5 billion or RM20 billion,” Fahmi said.
We might not know what the full amount is, but it is a big burden to the people. What I’m told is that the government may make a decision within the next week about what model they would take.”
Also present at the talk were prominent economist Muhammed Abdul Khalid, former Jaring CEO Mohamed Awang Lah – affectionately known as the “father of Malaysian internet” – and UM Faculty of Computer Science and Information Technology lecturer Fazidah Othman.
Muhammed echoed Fahmi’s remarks on the concerns behind DNB being the sole distributor of 5G services, saying that the RM20 billion in setting up costs would be a burden to taxpayers.
However, Mohamed – who pioneered internet technology in Malaysia in 1984 – suggested there are benefits to DNB, as telcos can save money on costs if some “passive” infrastructure such as towers and fibre optic cables were shared.
Mohamed also said that the 5G rollout is “not urgent”, as it is more important to ensure that underserved areas can have access to 4G connectivity. – The Vibes, January 24, 2022
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