KUALA LUMPUR – Millions of mobile internet users will begin enjoying 5G broadband connectivity as early as next month if all six major telecommunications companies finalise their agreements to acquire stakes in Digital Nasional Bhd (DNB).
Industry sources said many Malaysians could benefit from the initial roll-out of high-speed 5G by mid-September, once the telcos ink the relevant deals with DNB, the government’s special purpose vehicle for rolling out 5G through a single wholesale network (SWN).
The sources said several telcos are already in the midst of conducting speed tests in certain major cities, ahead of the unveiling of 5G connectivity, which will see rapid deployment within the next few months.
This comes after Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said that the telcos have until August 31 to finalise the agreements to acquire stakes in the government-owned DNB, or risk missing out on reaping maximum benefits from the nation’s 5G SWN.
“If all six major local mobile network operators (MNOs) latch on to the agreements by then (August 31), then the rollout of 5G as early as mid-September would be on the horizon,” an industry source said.
“But this is a possible scenario and not a promise, as things could change as the deadline approaches.”
The source, however, did not indicate the specific number of mobile customers that the initial roll-out would cover, but said it would be done in some of the country’s most populated cities and connecting townships.
It is also understood that the roll-out of DNB’s 5G infrastructure has reached 30% of the nation’s populated areas, covering major cities such as Penang and Johor Baru, apart from the Klang Valley.
The Malaysian Communications and Multimedia Commission (MCMC) defines “populated areas” as having at least 20 people per sq km.
Currently, only YES has begun offering the 5G speeds to its customer base, primarily in the Klang Valley, while the five other telcos were conducting tests on the connectivity in covered areas.
Another source told The Vibes last week that Maxis and U Mobile were the last two telcos that had yet to agree to purchase stakes in DNB, and risked missing out on reaping maximum benefits from the nation’s 5G network.
The source said Maxis and U Mobile would still be able to subscribe to the 5G services offered by DNB for their customers, but will “be frozen out” from individually owning up to 12% equity if they failed to comply with terms laid out by Putrajaya.
However, on Sunday, Tengku Zafrul told The Malay Mail that both Maxis and U Mobile had agreed to acquire stakes in DNB, following in the footsteps of their other four competitors Celcom, DiGi, YTL, and Telekom Malaysia, who had already accepted the government’s offer to become shareholders of the Finance Ministry-owned special purpose vehicle.
Tengku Zafrul also said foreign telcos were highly keen to participate in the nation’s 5G roll-out, but local players should be given priority.
In its Handphone Users Survey 2021 released in July this year, the MCMC found that the penetration rate of smartphone users among Malaysia’s 33 million population was at 94.8% last year.
Industry analysts have also noted that the data consumption projections saw an increase to 28 gigabytes (GB) monthly per user compared to 25GB this year.
“With an average annual increase of 25% in data consumption, each user is expected to use an average of 186.6GB per month by 2031.”
In September last year, Tengku Zafrul said the government had aimed to provide 5G network coverage to 80% of the country’s populated areas by 2024.
The source also said that each telco is forking out some RM200 million each to hold an equal 11.7% stake in DNB, on top of the Finance Ministry’s RM500 million injection to have a 30% golden share in the network.
Previous reports noted that the MCMC will hold a review of 5G speed prices every three years. – The Vibes, August 19, 2022
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