Telcos call for second 5G service provider

 

Representatives from six mobile network operators are said to have met with government officials to propose solutions to break the deadlock over 5G deployment.

PETALING JAYA: Some of Malaysia’s biggest telecommunications players have recommended that a second 5G service provider be set up.

This comes a month before the Cabinet decides whether to carry on with its current single wholesale network model in rolling out 5G services nationwide, which is handled by Digital Nasional Berhad (DNB).

According to three sources who spoke to Reuters, representatives from six mobile network operators met with government officials yesterday to propose solutions to break the deadlock between Putrajaya and mobile providers and share their ideas on 5G deployment.

Reuters had earlier reported that service providers and the government had hit an impasse, with the former citing pricing and transparency issues with the planned model.

Currently, the plan is for DNB to be the sole wholesaler of 5G, and which would build, own and operate the network and lease spectrum to mobile providers.

This model has come under fire, however, with many calling it a monopoly. Opposition leader Anwar Ibrahim has warned that the lack of transparency could lead to a scandal on the scale of 1MDB.

The sources, which included two telecommunication company officials, requested anonymity as the discussions were private.

Four operators – Axiata-owned Celcom, Digi, Maxis and U Mobile – recommended that the government allow two wholesale 5G networks, each to be built and operated by a consortium of carriers, the sources said.

In a presentation sighted by Reuters, the companies proposed both networks run in parallel from next year before separating in 2023, “giving Malaysia fast initial deployment and then the security of dual competing networks going forward”.

The two consortiums would make use of existing telco assets to “coordinate rollout and collaborate in the first 12-18 months to achieve faster rollout of 5G across Malaysia than any one party”, the slides showed.

The carriers would also be open to proposals that would allow them to own shares in DNB, and asked to be more included in the government’s rollout plans, the sources said.

“We hope there will be continued consultation on the matter, given the deep implications for the country’s digital economy ambitions,” one of the sources said.

YTL Communications, however, objected to this plan and expressed support for a single 5G network, while Telekom Malaysia said it would support any decision made by the government, the sources said.

Digi, U Mobile, and YTL declined to comment when contacted by Reuters. The communications and multimedia ministry, Axiata, Maxis, and Telekom Malaysia did not immediately respond to Reuters’ requests.

DNB said it was not privy to the discussions held.

“We will respect the process adopted by the government and will make our representations at the appropriate forum,” DNB chief executive Ralph Marshall said in an email to Reuters. - FMT