KUALA LUMPUR – Malaysia will be better off with a 5G broadband spectrum provided by a single wholesale network (SWN) as other models for its roll-out would be “confusing” for stakeholders and consumers in the country, said a United Nations (UN) adviser.
Brett Haan, an adviser to the UN on 5G Strategy and Policy and Brazil’s Economics Ministry, said although mobile network operators (MNOs) have raised several concerns, including the domino effect of failures due to a single source was “understandable”, the private telecommunications can also view the model as a basic utility for the people.
“They can think of (the matter) as a utility, or things like ports and airports,” he said during a media briefing at the Mandarin Oriental hotel in Ampang yesterday.
“The airport is an infrastructure with carriers like Emirates, Qatar, Singapore, and Malaysia Airlines. So, there is an infrastructure that is government-run and managed, and this entity has to be transparent in reporting to governments and other stakeholders.
“God help you if your airport closes, the citizens will let you know in a heartbeat.”
No match to DNB’s offering
Analysts had earlier suggested that it is not possible for the dual wholesale network mooted by MNOs to match Digital Nasional Bhd’s (DNB’s) 20 sen or less per gigabyte guarantee.
This is because DNB, as a government-run company, operates on a non-profit basis, allowing it to sell data almost at cost price.
However, the analysts said a consortium made up of Maxis Bhd, Digi Bhd, U Mobile Sdn Bhd, and Axiata Bhd have been silent on the charges to be passed on to consumers.
They said it is unlikely the companies can match DNB’s offering, as they need to invest heavily in infrastructure.
The SWN strategy is being opposed by major telcos for a multitude of reasons including concern of not being in control of DNB’s network, a fear of a possible single point of failure, as well as having to accelerate the amortisation of billions spent on their 4G infrastructure.
Also high on the list is perhaps the possible entry of competition from new players tapping into the network with a relatively lower entry cost.
Hann, who is in Malaysia on a private work visit, said this after holding a talk with the media titled An Expert’s Perspective: 5G Policy and Strategy for a Rapid National Deployment.
He also said he understood the concerns of the MNOs as a SWN, provided by the Finance Ministry-owned DNB, changes the business model for telcos.
“But this is an opportunity for them (telcos) to work with the hyper scale and cloud people and other actors who have been very innovative, and (other) enterprises in other areas.”
Hann, who has advised several governments and private firms in the United Kingdom, South Africa, Saudi Arabia, and Mexico, said he personally believes a dual wholesale model creates more confusion.
“Who will be responsible for what with the dual model?
“The other issue with the dual model is if you go (into it) four or five years or so. You will have to separate from the companies, which is the functional structural separation, and that never goes easily.
“The functional structure of separation is very hard to do. So, it’s difficult and creates confusion in the marketplace.”
He said a SWN for 5G in Malaysia is a worthwhile discussion as the main goal is to achieve infrastructure stability.
Hann added that having a common infrastructure would encourage service sector competition and growth, but ultimately, the decision to implement the SWN for the national 5G network is made by the government.
“I think it’s very important for the government to create confidence in this (initiative), that is to work with the MNOs, larger government and private enterprises, as well as stakeholders so that the people (Malaysians) see the benefits of this model.” – The Vibes, February 17, 2022
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