PETALING JAYA: Former prime minister Muhyiddin Yassin has warned Putrajaya against reconsidering the single wholesale network (SWN) model for the country’s 5G rollout, saying it could lead to a loss in investor confidence.
The repercussions could damage the government’s reputation, and have serious financial and legal implications for the country and Digital Nasional Bhd if contracts are terminated or breached due to a change in the model, he said.
DNB is a government agency which is the sole entity engaged in building and managing the entire 5G (fifth-generation) mobile telecommunications network. 5G technology promises faster mobile communications of up to 10 gigabits per second.
Muhyiddin said that Malaysia would lose out on generating a total of RM122 billion in revenue by 2030. “There will also be a loss in opportunity cost for the industry and (it will) disrupt the creation of 148,000 jobs,” he said in a statement.
Muhyiddin defended the SWN model, saying that DNB would be subject to terms and conditions set by the Malaysian Communications and Multimedia Commission to ensure that the 5G network would be developed faster and at a lower price.
DNB would also bear the cost of implementing the 5G network with revenue generated from sales, he said.
Under the SWN model, the interest of Bumiputera contractors would be prioritised, one of the requirements of the 5G project being to benefit over 60% of Bumiputera contractors in the next 10 years.
“In short, the SWN model adopted by DNB clearly benefits everyone. More importantly it will ensure wider coverage at a lower cost,” Muhyiddin said.
Muhyiddin said that Ericsson (Malaysia) Sdn Bhd was appointed as the network equipment provider after DNB implemented a request for proposal for the 5G radio access network on April 7, and the tender process was implemented after negotiations with telecommunications companies.
Earlier this week, DNB said it would offer wholesale 5G services to mobile carriers at no cost during an initial rollout set to begin next week, following concerns from operators over its pricing plans.
Reuters previously reported that none of the local mobile players have agreed to use the network citing transparency and pricing issues.
Separately, Lebuh Pantai MP Fahmi Fadzil, quoting a news article that South Korea’s 5G rollout had reached 16% of mobile consumers in a year, said there was no monopoly over radio spectrum in a single wholesale network as created by DNB, Zafrul (finance minister Tengku Zafrul Aziz) and Muhyiddin.- FMT
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