Major decision on 5G, DNB could come next week, says MP

 

Lembah Pantai MP Fahmi Fadzil figures that the 5G rollout could cost up to RM20 billion. (Bernama pic)

PETALING JAYA: A decision could be made as soon as next week on whether there will be a change in the distribution model for the 5G broadband spectrum, said Lembah Pantai MP Fahmi Fadzil.

Currently, Digital Nasional Berhad (DNB), wholly owned by the finance ministry, has been tasked with building the 5G infrastructure.

It will be the sole owner of the spectrum, which it will then lease to telecommunication service providers.

Speaking at a talk titled “5G: What Is The Best Way Forward for Malaysia?” organised by Persatuan Komputer Universiti Malaya, Fahmi lamented the “ballooning” estimates for the cost of rolling out 5G, which he said was originally expected, at most, to be RM7.5 billion.

“Then we heard that the government had brought in Ericsson as the equipment supplier, and it would cost RM11 billion.

“Then, in an explanation to MPs in Parliament, the government said it would cost RM12.5 billion, but with extra charges for other financial components, like salaries, the costs could be somewhere in the range of RM16.5 billion,” he said.

“Or it could be more, up to RM20 billion, according to the CEO of DNB, Ralph Marshall, during an interview with The Star in October 2021.”

Fahmi said that he was informed that a decision on whether to change tack could be just around the corner, but said the model had already delayed the rollout of the high-speed broadband network.

“In May 2020, the communications and multimedia minister at the time, Saifuddin Abdullah, issued 18 instruments awarding spectrums to telecommunication companies for the 5G rollout, but within two weeks he had made a U-turn.

“Had these mobile network operators been given the spectrums for 5G then, today we would have 5G. Right now, we’d have it.”

He also noted the knock-on effects that DNB’s presence could have on the rest of the market.

“Many of these network operators are 25-60% owned by the Malaysian public. This includes EPF, PNB and many other entities.

“If there is a depreciation in all the investments made (by operators), how will it affect the dividends received by them?” - FMT