Opinion

5G industry disruptor exposes ugly side of telcos – Zainul Arifin

With DNB’s entry, firms fear losing cartel-like hold on mobile scene

Updated 2 years ago · Published on 23 Dec 2021 7:00AM

5G industry disruptor exposes ugly side of telcos – Zainul Arifin
Since nature abhors vacuums, whatever information the government and Digital Nasional Bhd fail to provide will instead be provided by others, some of which may not favour the 5G project. – The Vibes file pic, December 23, 2021

by Zainul Arifin

WHY are some politicians siding with rich telecommunication companies (telcos) over the interest of the people in the national 5G debate?  

Has the telcos lobby gotten hold of them, or are they using the 5G plan as another political ammo to get at the government by painting a spectre of an impending scandal? I believe it is true on both counts. 

The previous government set up government company Digital Nasional Bhd (DNB) to build a nationwide 5G infrastructure, instead of having telcos do it. The major telcos are not too happy and are withholding support – and reports suggest they are lobbying for an alternative network. 

They are said to be waging war against DNB and their lobby seems strong, concerted, and has convinced some big guns – politicians, non-governmental organisations, the media, etc – to be on board. 

DNB is to be a single wholesale network (SWN) that will sell 5G access to telcos, or whomever that wants it. The idea is that the SWN will free telcos from having to invest and duplicate resources, and instead concentrate on services to be offered to customers.  

The 5G is meant to provide almost quantum leap-like technological development – for instance, 2G wowed us with the novelty of sending text messages or SMS over the phone, while the 8-year-old 4G (yawn) allows extensive internet functionalities, including streaming.  

The 5G is aimed not only to advance telecommunication, but also to open new possibilities in commerce and society. The government wants to make 5G available far and wide – and cheaply, too.  

Veteran newsman Zainul Arifin Mohammed Isa notes it is ironic to the point of disbelief that telecommunication companies are telling their subscribers that they can now roam and use 5G services in Singapore or Thailand, but not at home. – Pixabay pic, December 23, 2021
Veteran newsman Zainul Arifin Mohammed Isa notes it is ironic to the point of disbelief that telecommunication companies are telling their subscribers that they can now roam and use 5G services in Singapore or Thailand, but not at home. – Pixabay pic, December 23, 2021

DNB pledged to sell 5G access to telcos at less than 20 sen per GB, while consumers are now charged up to RM2 per GB for 4G services. If telcos were to invest, there will be a need for them to recoup their investment by passing the cost on to consumers – and it ain’t going to be 20 sen per GB, I believe. 

I also believe that the major telcos, having spent billions on the 4G network, will not be too quick to invest yet again. And we are already late in the 5G game. Also, if they were to do so, it would probably be in major population and business ventures.  

I find it ironic to the point of disbelief that telcos are telling their subscribers that they can now roam and use 5G services in Singapore or Thailand, but not at home – or that their networks are “5G-ready” when they are nowhere near offering the service. 

How are these not contained in any of the politicians’ points in the 5G discussion and arguments made against DNB? 

The telcos talked of competition, reliability, and the need for redundancy in case DNB falters, for instance, while the politicos painted the prospect of a looming national scandal of immense proportions due to cronyism, corruption, the lack of transparency in the award of contracts – a general doom and gloom if the plan were to be carried out. 

Damning indictment

I am trying to be charitable in my thoughts that telcos would not only be focused on dense, profitable areas, but would also be as earnest in covering the rest of the country. However, my cynicism won out when the government had to initiate and invest billions in the Jalinan Digital Nasional programme or Jendela to push for better 4G coverage in rural areas. 

I have said it before, the picture of the 18-year-old Sabahan girl in a tree trying to get a decent signal for her to follow her online classes and sit for an examination is a damning indictment of our telcos.  

It is also laughable that a politician used poor 4G services to support his argument that DNB should be scrapped. Perhaps, he has his signals crossed – 4G is operated by the telcos, the very same ones whom he is championing for the 5G programme. 

Also, likening DNB to failed state investment vehicle 1Malaysia Development Bhd (1MDB) – someone even coined it as 5DNB, geddit, 5G, DNB, 1MDB – is just lazy politics. 

This is an old political trick of lumping DNB to a scandal in an attempt to tar the government with the broad strokes of nefarious deeds. I do not know if this is working, but I suppose from now on anything can be another 1MDB.    

Likening Digital Nasional Bhd to failed state investment vehicle 1Malaysia Development Bhd is just lazy politics, says veteran newsman Zainul Arifin Mohammed Isa. – AFP pic, December 23, 2021
Likening Digital Nasional Bhd to failed state investment vehicle 1Malaysia Development Bhd is just lazy politics, says veteran newsman Zainul Arifin Mohammed Isa. – AFP pic, December 23, 2021

Here, the government and DNB have to assume the bulk of the blame. They have been miserly with information – what they are doing, the cost of the project, how DNB is financed, who are the shareholders, etc.  

Since nature abhors vacuums, whatever information the government and DNB fail to provide will instead be provided by others, some of which may not favour the project. 

Politicians who should know better, and who claim to be looking after our interests, have been rather silent on the promise that DNB will drastically cut what we are paying for mobile access.  

It is widely speculated that the YES network operated by YTL Group and Telekom Malaysia Bhd will be offering unlimited 5G access with the roll-out of DNB services in selected areas at rates that are much cheaper than the 4G by all telcos. 

Now, which part of that do the politicians not appreciate? 

I do believe the telcos’ band of brothers are more concerned with losing their cartel-like hold on Malaysia’s mobile telecommunication scene and the possibility of new players coming in via DNB, than they are in the absence of competition via the SWN method. 

If that is the case, perhaps DNB should open up to allow telcos to have stakes in it so as to get them on board the national 5G programme.  

If savvy politicians were to suggest that, they would then be seen as championing the interests of telcos, as well as taking up the cause of consumers. – The Vibes, December 23, 2021

Zainul Arifin Mohammed Isa is a veteran newsman with more than 35 years in the business. He is executive director of operations at PETRA News

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