KUALA LUMPUR – Digital Nasional Bhd’s (DNB) offer of ultra-fast broadband connectivity to telecommunications companies (telcos) for only RM0.13 per GB is among the lowest rate for such services globally, an industry insider said.
The insider, who declined to be named, said DNB’s blended wholesale price to the telcos which was between 12 sen and 13 sen per GB, as announced by Communications and Digital Deputy Minister Teo Nie Ching on Monday, was the “cheapest in the world”.
“A dual wholesale network is expected to produce 5G capacity at more than 50% higher cost compared to the single wholesale network,” the insider said of Malaysia’s government-run model for the rollout.
Indeed, the low 5G wholesale cost to telcos will translate into lower prices for users, both consumers and enterprises. Already, 5G unlimited data packages in Malaysia are some of the lowest-priced in the world.”
In Parliament on Monday, Teo said the RM0.13 rate offered by DNB was done through a reference cost offer, which is lower compared to the current cost of 5G services at RM1.68 per GB.
According to Bernama, the move to expand 5G network coverage, which the government announced under Budget 2023, can further lower the internet prices currently offered to users.
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“So, we believe that with (this move of) expanding the 5G network coverage, the prices of our internet can be lowered further,” she said during the question-and-answer session in the Dewan Rakyat on Monday.
She was answering a supplementary question from Lim Guan Eng (Bagan-PH), who wanted to know if the cost of 5G services can be reduced if it is implemented nationwide.
Teo said that, currently, the implementation level of 5G services is at 54.7% and the ministry is confident of achieving its target of 80% coverage for populated areas like Cameron Highlands (Pahang) and Sibu (Sarawak) by the end of this year.
She said the government would also ensure the cost of implementing 5G services would remain at RM16.5 billion to enable users to enjoy the internet at a reasonable price.
When replying to a supplementary question from Rushdan Rusmi (Padang Besar-PN) about whether DNB will continue to be owned by the Finance Ministry or be authorised to be operated by another telco, Teo said discussions on that matter have begun so that the company will also have shares in DNB.
“But, so far, the agreement (discussions) have not been finalised yet and we (the ministry) together with the telco are negotiating because the company has several questions… if it acquires DNB shares, what are its rights as a shareowner?
So, there are details that need to be refined before the telco makes a decision.
Meanwhile, in reply to Lim’s original question on the cost and quality of 5G services offered by the company and the ministry’s efforts to lower its cost further until it is the cheapest in Asean, Teo said the prices offered by the service provider are determined by market forces.
According to her, if the market fails to function efficiently, then the Malaysian Communications and Multimedia Commission (MCMC) can intervene in setting the prices.
“However, the MCMC regulates access prices at the wholesale level, with ‘wholesale’ permission through the Commission Determination on the Mandatory Standard on Access Pricing and studies on these access prices are made periodically.
“Through regulation at the wholesale level, it can indirectly reduce prices at the retail level to consumers to a more competitive level,” she said.
She said the 5G services have just been offered in Malaysia and that, for now, service providers are adopting a neutral technology concept in offering prices with no difference between 5G and 4G services. – The Vibes, March 16, 2023
Additional reporting by Bernama
