Govt SPV to oversee nation’s 5G transition

KUALA LUMPUR – The government’s special purpose vehicle (SPV) will be the entity to oversee the deployment of 5G infrastructure and network nationwide, said Malaysian Communications and Multimedia Commission (MCMC) chairman Fadhlullah Suhaimi Abdul Malek.

He said the SPV will be licensed under the Communications and Multimedia Act 1998 and subject to MCMC’s regulatory oversight.

“This single entity will manage the transition to 5G network, which will reduce network duplications. As we push for communications to be the third public utility, companies can focus on providing better internet services for customers.”

He said the government-owned SPV will provide transparent wholesale services to providers, adding that there will not be any transfer of ownership for the next 10 years.

“MCMC will come up with further regulatory requirements to ensure the plan is for the benefit of the country.”

Prime Minister Tan Sri Muhyiddin Yassin on February 19 launched the digital economy blueprint initiative, which comprises three phases to be completed by 2030.

Fadhlullah Suhaimi also outlined the demand strategy needed to ensure the 5G network is being used, which includes the “5G First” policy to facilitate the adoption of the network’s services, support from federal and state governments for the deployment of its infrastructure, and 5G nurturing programmes.

He added that MCMC is also building a National Digital Experience Centre to serve as a showcase of digital experiences and services of the future.

He said the deployment of the 5G network will cost between 25% and 75% more than 4G, with total investment allocated for the infrastructure and network at RM15 billion over the span of 10 years.

“It will generate approximately 105,000 jobs based on the assumption that any digital investment of RM1 billion will create 7,000 jobs, as the use of technology will reduce reliance on low-skilled foreign labour.”

He said priority will be given to capital cities that have high economic activities and densely populated areas. – Bernama, February 22, 2021