Govt sticks with sole 5G network, offers 70pct stake to telcos

 The government said today it will offer up to 70 percent equity in wholly state-owned 5G agency Digital Nasional Berhad (DNB) to telecommunication (telco) firms.

This is amid concerns among wireless carriers that a single, shared 5G network could hamper competition.

The announcement comes after the matter was raised in the cabinet last week.

Mobile service operators had recommended a second 5G provider in an impasse with DNB over pricing and other issues, said people with knowledge of the matter to Reuters in December.

The government is sticking with its plan for a sole 5G network to maintain policy continuity but will allow telco companies to hold equity stakes to speed up the construction of infrastructure.

The Finance and Communication Ministries said this in a joint statement today.

"Ownership, equity value, and other aspects related to this proposed equity participation are subject to negotiations between DNB and telecommunications companies, with an agreement set to be finalised in the near future," the ministries said.

The government will retain a 30 percent equity stake in DNB, with the agency to be regulated by the Communications Ministry.

DNB and major operators Axiata Group's Celcom, DiGi.com Berhad, and Maxis Berhad did not immediately respond to requests for comment.

A plan last year to apportion spectrum to service providers was scrapped.

Instead, the government opted for a single shared network to reduce costs, improve efficiency, and speed up infrastructure construction.

Service providers said the plan risked creating a nationalised monopoly that would be more costly than if they deployed 5G networks themselves.

DNB said the cost of accessing its 5G network would be less than what the telecom companies incurred for 4G.

DNB has also offered free 5G services to service providers until March 31 while it seeks to finalise long-term wholesale agreements.

- Reuters