Umno Youth chief to submit memorandum on 5G roll-out

KUALA LUMPUR – Umno Youth chief Datuk Asyraf Wajdi Dusuki is expected to deliver a memorandum to the Communications and Multimedia Ministry this afternoon over the government’s planned roll-out of 5G broadband connectivity in the country.

This came to light after the ministry issued a media invitation for a press conference about the Finance Ministry-owned single wholesale network Digital Nasional Bhd (DNB), yesterday.

According to the invitation, Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin is expected to receive the memorandum at the ministry’s building, Angkasapuri, in Lembah Pantai at about 12pm. However, the official invitation did not include the details of the party involved.

Various sources familiar with the matter, when contacted, revealed that Asyraf is sending the document on behalf of the Youth wing. The details of the memorandum were not made known, but it is likely related to a statement Asyraf made earlier this month regarding DNB.

In a Facebook post on June 9, Asyraf had called for the government and DNB to explain the implementation of the national 5G project, and the credibility of the special purpose vehicle’s chief executive Ralph Marshall.

Asyraf said the questions on DNB needs to be addressed immediately as it is a national agenda that involves a large amount of funding.

It is understood that a detailed explanation by DNB has been shared with the Communications and Multimedia Ministry, but it is uncertain whether Asyraf had received the response.

The submission of the memorandum comes several days after Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz insisted that the 5G network roll-out is ultimately a matter of national interest meant to uplift Malaysians and should not be considered merely from the commercial needs of telecommunication companies.

Tengku Zafrul told Singapore’s Straits Times that the 5G network will boost the economy by RM650 billion and create 750,000 high-value jobs between now and 2030.

The finance minister also said the government’s 5G roll-out under 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.

He also stated that priority will be given to local telcos to hold equity in DNB, despite interest from other foreign and domestic investors.

So far, only two telcos – YTL Communications Sdn Bhd and Telekom Malaysia Bhd – have signed up with DNB’s roll-out, while the four industry giants – Celcom Axiata Bhd, Digi Telecommunications, Maxis Bhd, and U Mobile Sdn Bhd – have yet to ink any deals ahead of the June 30 deadline set by the government.

Instead, the four telco giants, collectively known as CDMU, have previously coalesced as an informal consortium resisting the single wholesale network, calling for the government to allow for a dual wholesale network instead.

Communications and Multimedia Minister Tan Sri Annuar Musa also stated last Wednesday 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.

In December last year, Zahidi claimed to have no information on discussions about the roll-out of 5G as he was not made privy to them.

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. – The Vibes, June 21, 2022