Malaysia

Auctioning 5G spectrum could see consumers paying higher prices: Annuar

Communications minister says Malaysia wants to ensure cheaper price than 4G

Updated 4 years ago · Published on 18 Nov 2021 12:44PM

Auctioning 5G spectrum could see consumers paying higher prices: Annuar
Multimedia Minister Tan Sri Annuar Musa says consultations between Digital Nasional Bhd and telecommunication companies will be mediated by the Malaysian Communications and Multimedia Commission, preventing the company from simply setting high prices on the 5G spectrum. – Bernama pic, November 18, 2021

by Arjun Mohanakrishnan

KUALA LUMPUR – The option to auction off the 5G spectrum to telecommunication companies (telcos) could result in consumers paying higher costs to subscribe to them, said Communications and Multimedia Minister Tan Sri Annuar Musa. 

Speaking at the Dewan Rakyat, Annuar said upon consultation with Digital Nasional Bhd (DNB), the price for the 5G spectrum is estimated to cost RM6 billion.

He noted that in other countries using the bidding or auction method, prices can even reach RM15 billion.

“If we use the auction system, the price will be passed on to consumers. The higher the price, the higher the amount the consumers would pay.

“Malaysia wants to ensure 5G is cheaper than 4G,” Annuar told the Dewan Rakyat during a question-and-answer session. 

He said consultations between DNB and telcos will be mediated by the Malaysian Communications and Multimedia Commission, preventing the company from simply setting high prices.

Additionally, Annuar contends that DNB’s utilisation of the multi-operator core network (Mocen) will see technology innovation at an unprecedented level.

“In other countries, Mocen usually involves two operators sharing one apparatus.

“During a demonstration I attended some days back, Malaysia recorded history by being the first (country) where Mocen can be shared by up to five operators,” Annuar said. – The Vibes, November 18, 2021

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