KUALA LUMPUR – Malaysians can finally enjoy 5G services in certain areas in Kuala Lumpur, Putrajaya and Cyberjaya following the roll-out of the latest telecommunications standard by Digital Nasional Bhd (DNB) today.
However, at present, only Telekom Malaysia Bhd and YTL Communications Sdn Bhd have subscribed to DNB’s offer of the wholesale 5G services, meaning only Unifi Mobile and Yes’ users can take advantage of the significantly faster speed.
Consumers will also need to own 5G-compatible devices to enjoy the coverage.
Unifi and Yes are both putting the 5G network under a trial run, before commencing commercial services in April next year.
The other four major mobile network operators (MNOs) – Celcom, Digi, Maxis and U Mobile – have yet to agree to subscribe to DNB’s network.
DNB chief commercial officer Ahmad Taufek Omar told a press conference that negotiations to convince the other four telecommunication companies to utilise the wholesale network are still ongoing.
“The fact is we have not stopped our discussions with all six companies. We are still consistently communicating. To us, it’s business as usual,” he said after the announcement of Malaysia’s commercial 5G availability today.
Ahmaf Taufek added that the current deal with Telekom Malaysia and YTL Communications is part of a pilot commencement of its 5G services, with a longer-term agreement only to be signed after the publication of the reference access offer (RAO).
The RAO will be finalised by the Malaysian Communications and Multimedia Commission (MCMC) before DNB can enter into final negotiations with MNOs for the wholesale agreements.
It was reported by Reuters yesterday that the four MNOs have rejected the government’s plan for a single 5G wholesale network under DNB and have instead recommended that they be allowed to set up a second service.
The government had said previously said that it is deliberating whether to go ahead with a single wholesale network and will make a decision next month, following objections.
The mobile operators are said to be objecting the plan over pricing and transparency issues.
This is despite DNB, which is wholly owned by the Minister of Finance (Incorporated) promising a much cheaper rate for 5G services as compared to the current 4G network.
Asked to comment on the MNOs’ apparent reluctance to utilise DNB’s 5G network, its chairman Datuk Asri Hamidon said he will not be answering on any operational matter and will leave it to the Communications and Multimedia Minister Tan Sri Annuar Musa.
Following today’s 5G rollout, DNB aims to achieve a service coverage of 80% of the population by 2024.
Presently, DNB is offering all MNOs 5G services at no cost until March 31, 2022, before they will be charged a minimal fee.
Earlier in his speech, DNB chief executive officer Ralph Marshall said mobile operators who enter into the wholesale agreement with the company before March next year will be incentivised with free access to all additional capacity.
“We will encourage all the MNOs to actively promote the accelerated adoption of 5G,” he said.
“While there might be some impact on your early operating costs, the medium and long-term benefits from the increased turnover will result in improved profitability and cash flows.”
Marshall noted that at present, there are over 75 5G-enabled consumer devices available in the market, with at least 50 immediately available at stores or online.
DNB was established in March 2021 and acts as the government’s sole provider of infrastructure for the 5G network, with Ericsson later appointed in July as the network equipment provider.
Marshall added that when the company was first established, it was allocated by the government to achieve several mandates, including:
- accelerate the deployment of the 5G network
- realise the potential of 5G to spurt economic activity
- bridge urban-rural digital divide
- avoid duplication and optimise use of scarce resources – The Vibes, December 15, 2021
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