Another opposition MP questions govt’s second 5G network plan

 

Tasek Gelugor MP Wan Saiful Wan Jan claimed the communications minister’s failure to properly plan the roll-out of the second 5G network will result in losses to the rakyat and taxpayers. (Bernama pic)

PETALING JAYA: Another opposition MP has questioned the government’s planned roll-out of the proposed second 5G network, saying it puts mobile network operators (MNOs) at risk of breaking the law and in conflict of interests.

Tasek Gelugor MP Wan Saiful Wan Jan said Section 133 of the Communications and Multimedia Act 1998 prohibits companies licensed by the Malaysian Communications and Multimedia Commission (MCMC) from engaging in actions that diminish competition in the communications market.

Putrajaya had previously made it a requirement for all telecommunications companies to acquire a stake in Digital Nasional Bhd (DNB), set up as a wholesaler of 5G services in Malaysia to all MNOs.

Recently, CelcomDigi Bhd, Maxis Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd all confirmed having met conditions to collectively own a 65% stake in DNB.

These telcos are now said to be vying to develop the second 5G network, which Wan Saiful said may give rise to a conflict of interests on their part.

Wan Saiful Wan Jan.

“They will have insider knowledge about DNB’s technical and financial details through their participation in DNB (which) gives them an unfair business advantage,” said Wan Saiful in a statement.

“Their presence on DNB’s board of directors provides these telecommunications companies with unfair control over DNB’s management and operations, as well as access to DNB’s financial information and strategies.

“These companies can use this information to ensure they have an unfair advantage when competing with DNB in the future,” he said.

Wan Saiful, who holds the communications portfolio in Perikatan Nasional’s shadow cabinet, said the process laid out by the government was “highly detrimental, illogical, and incompetent”.

“Where is the competition that the communications minister has been talking about all this time?

“The communications minister has clearly been careless, and his plans have not been carefully thought out. Ultimately, this will result in losses to the rakyat and taxpayers,” the Bersatu Supreme Council member said.

Wan Saiful is the second opposition MP to express reservations about the communications minister’s plan for the proposed second 5G network.

Two weeks ago, Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal called the move a “blatant” contravention of the law.

He called on Putrajaya to halt plans to develop a second 5G network, saying the current scheme might lead to a conflict of interest among MNOs and DNB.

Last week, former Jaring chief executive, Mohamed Awang Lah, also raised the conflict of interests issue and called for DNB to be restructured so that it would be independent of the industry.

Mohamed said MNOs should have been allowed to operate their own 5G services without the government getting involved.

DNB, which was first tasked with the nationwide rollout of 5G three years ago, has faced scrutiny over its monopoly of the 5G network.

While proponents have highlighted its potential for coordinated and efficient deployment, critics have argued that a single-network model would stifle competition and innovation.

In May last year, Putrajaya agreed to introduce a second 5G service provider in a bid to shift to a two-network model.

However, the plans were contingent on DNB achieving 80% coverage in populated areas.

DNB surpassed the target in December last year. As of April, its 5G coverage stood at 81.5%. - FMT