According to Reuters, several major mobile operators in Malaysia have suggested that the government allow the construction of a second 5G network, a move that comes before the Malaysian cabinet decides whether to continue to implement the national single 5G large network plan.
Malaysian Communications and Multimedia Minister Annuar Musa said last week that the Cabinet would decide in January next year whether to allow the existence of multiple 5G service providers as industry participants feared that a single state-owned network could hinder competition.
Reuters reported in November that Malaysian mobile operators and Digital Nasional Berhad (DNB), the Malaysian state agency responsible for deploying a single large network of 5G, were deadlocked over wholesale pricing and transparency issues.
DNB plans to launch 5G services for the first time in three central areas on Wednesday.
Representatives of six Malaysian mobile operators met with officials from relevant departments on Monday to come up with a solution to the impasse and their ideas for deploying 5G, three people familiar with the matter told Reuters.
It is reported that the discussion was held in private.
Four carriers — Axiata Group's Celcom, DiGi.com, Maxis and U Mobile — have suggested the government allow two wholesale 5G networks, each built and operated by a consortium of carriers, the sources said.
In a presentation seen by Reuters, the operators proposed that the consortium launch the two networks in parallel next year and separate them starting in 2023, "allowing Malaysia to achieve rapid initial deployment and bring the security of a double-competitive network in the future".
The slideshow shows that the two organizations will leverage existing telecom assets to "coordinate deployments and collaborate in the first 12-18 months to achieve a speed for a faster rollout of 5G in Malaysia than either single party".
Operators will also be open to proposals to allow them to take stakes in DNBs and demand greater involvement in the government's network deployment plans, the sources said.
One of the sources said, "Given the far-reaching implications for the country's digital economy ambitions, we expect ongoing consultations on this matter." ”
Another operator, YTL Communications, opposed the plan and said it supported a single 5G network, while Telekom Malaysia said it would support any decisions made by the government, the sources said.
DNB CHIEF Executive Ralph Marshall said in an email to Reuters: "We will respect the procedures adopted by the government and will make a statement in the appropriate forum. ”
In February, the Malaysian government scrapped a plan to allocate spectrum to operators in favor of a single shared network, aimed at reducing costs, increasing efficiency and speeding up infrastructure.
Still, operators worry that the plan will lead to a state-owned monopoly that will cost them more to provide services than they would to deploy their own 5G networks — though the DNB says operators will spend less on access to their 5G networks than they would cost to build 4G networks.
The DNB will also offer 5G wholesale services to operators free of charge until March 31 next year, as it seeks to finalize long-term wholesale agreements with operators.
This month, Telecom Malaysia became the first operator to sign a contract with DNB for 5G trials, but did not say whether it signed a long-term agreement. (C114 Ace)