[UPDATED] Govt to shift to dual wholesale network system for 5G roll-out

PUTRAJAYA – The government has decided to shift to the dual wholesale network system for the roll-out of ultra-fast 5G connectivity in the country, said Communications and Digital Minister Fahmi Fadzil.

However, he said the implementation of the roll-out would continue under the government’s special purpose vehicle Digital Nasional Bhd (DNB) until 5G reaches 80% coverage of populated areas by the end of 2023.

He said the decision on the matter came following a recent cabinet meeting.

Fahmi also said another entity will be created for the new network, but did not provide any names of the telecommunications companies involved.

“The dual wholesale network will be implemented based on global standard practices and allow participation of various network providers. It will not only cover consumers but also 5G target group industries,” Fahmi told a press conference.

“The decision was made based on the elements of usage and innovation, and will be carried out comprehensively to consolidate the ecosystem.”

Fahmi said that apart from doing away with monopolies, a dual wholesale network system will help avoid the problem of a single point of failure, as well as increase capacity beyond what has been projected.

“This is the assessment by the ministry. We do not believe there will be a reduction or deleterious effect on network speed,”

“The presence of another network will also ensure... interoperability. In case one network was to be affected for whatever reason, there is a fallback network.”

Fahmi explained that the shift to the dual system would only take place from January 2024 onwards, and that the composition of the telcos involved with the second entity will be determined at a later time.

He said that the infrastructure provider for the new entity would not be determined by the government.

“If we’re talking about entity B, it would not be a government decision as the government is not involved in the commercial considerations,” he said.

“For DNB, the wholesale price per gigabyte is 12 to 13 sen and this will be the basis for Entity B.”

“But if we were to take the principle of a free market, an open market, I believe the best deal wins.”

“This government is neutral to any of these matters, because we don’t take those matters into consideration because they are, to some extent, very commercial in nature.”

In February, Fahmi said that the cabinet would decide the fate of the country’s 5G roll-out plan by the end of March, including the role of state-owned DNB.

The same month, The Vibes reported that some of the country’s biggest telecommunications companies have made a new push to revive the dual wholesale network rejected by the previous government.

These mobile operators – said to include Celcom, Digi, Maxis, and U Mobile – are keen to test the resolve of the newly minted government and are said to have made a formal approach for their own 5G networks.

Despite the government’s review of the roll-out, Fahmi announced last month that 5G network coverage in Malaysia as of the end of March has reached 55%.

He said this was a positive development and showed that the government is on the right track in ensuring that the target of 80% of populated areas getting 5G network coverage before the end of 2023 can be achieved.

This also comes after US and EU ambassadors to Malaysia warned the government over risks to national security and foreign investments amid the government’s review of the 5G roll-out, which could see Chinese telecommunications companies provide infrastructure here. – The Vibes, April 3, 2023