KUALA LUMPUR – The 5G network rollout is ultimately a matter of national interest meant to uplift Malaysians and should not be considered merely from the commercial needs of telecommunication companies (telcos), said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.
In an interview with Singapore’s Straits Times, Tengku Zafrul said the 5G network will boost the economy by RM650 billion and create 750,000 high-value jobs between now and 2030.
“The availability and adoption of 5G contribute to the nation’s digital ambitions while ensuring connectivity as a basic right for Malaysians,”' said Tengku Zafrul.
“The larger issue is Malaysians’ and businesses’ access to 5G technology. If telcos, particularly the larger ones, continue to delay providing 5G services to their customers, as recently mentioned by the communications and multimedia minister, his ministry will consider other options, such as issuing new licences to new players to enable the speedy delivery of 5G services in the country.
Indeed, the interests of Malaysia and its people must take precedence over the telcos’ narrow commercial interests
In the interview, Tengku Zafrul added that the government’s 5G rollout under the Digital Nasional Berhad (DNB), will ultimately benefit the telcos’ long-term interests because it requires no heavy capital expenditure investment thus improving revenue in the medium and long term.
DNB will bear the entire cost of 5G capital expenditure, said Tengku Zafrul.
However, the government is also willing to consider financial incentives to assist telcos’ transition to 5G and mitigate any short-term commercial consequences of providing 5G services to their customers, said Tengku Zafrul.
He also stated that priority will be given to local telcos to hold equity in DNB, despite interest from other foreign and domestic investors.
However, he said no investor may own more than 20% of DNB – or 25% in the event of a merger among equity stakeholders.
The Ministry of Finance (MoF) will hold 30% of DNB, however, if only a few telcos invest in DNB, the MoF will take up any remaining shares, based on the maximum telcos' shareholding of 20% to 25%.
Similarly, Communications and Multimedia Minister Tan Sri Annuar Musa also stated that the government will look into issuing licences to new players if there is a lack of interest from established telcos to buy shares in DNB.
Overall the project is expected to cost some RM16.5 billion over the next 10 years to cover 80% of the country’s populated areas, said Tengku Zafrul.
Tengku Zafrul also expressed hope for all telcos to take up the necessary shares and sign up for the 5G network contracts by June 30.
“The majority of the process should be completed by then. If an extension is required, the process may be extended until early July, but no later than that.
“It is now moving in the right direction, towards our primary goal of providing 5G services to as many users and businesses as possible in the shortest amount of time, allowing Malaysia to catch up with its regional peers,” he said.
DNB was established in early March 2021 to accelerate the deployment of 5G infrastructure and network in Malaysia. It will offer 5G as a wholesale network service to other telcos. – The Vibes, June 17, 2022
