Malaysia’s government is planning to introduce a second 5G network in January 2024 in a bid to break DNB’s monopoly on the market, according to sources familiar with the discussions. DNB’s 5G rollout has been delayed since its launch in December 2021 due to industry concerns over pricing and transparency, as well as worries that a single government-run network would result in a nationalized monopoly. Anwar Ibrahim’s government is planning to introduce the second network, subject to DNB and mobile operators ensuring that 5G network coverage reaches the government’s target of 80% of the country’s populated areas by the end of this year.
The plan for a second network will be contingent on DNB and mobile operators ensuring that 5G network coverage reaches the government’s target of 80% of the country’s populated areas by the end of this year, the sources said. A proposal on the plan is expected to be submitted to the cabinet on Wednesday. Four Malaysian telco firms did not immediately respond to requests for comment. DNB and a fifth firm, CelcomDigi, declined to comment. CelcomDigi directed further queries to the government.
DNB has said a single network would reduce costs, improve efficiency and accelerate the building of infrastructure. However, it remains unclear how the proposal for a second 5G network would affect DNB’s existing agreements with its development partner Swedish telecoms giant Ericsson, and other mobile operators. Three carriers agreed last year to take up a collective 65% stake in the agency, with the government holding the remaining 35%.
The move to introduce a second 5G network is the latest policy shake-up aimed at dismantling monopolies and promoting competition by Prime Minister Anwar Ibrahim’s six-month-old administration. Communications Minister Fahmi Fadzil said on Friday he hoped to raise 5G matters in the cabinet this week. The introduction of a second 5G network could lead to increased competition and innovation in the Malaysian telecoms sector, ultimately benefiting consumers.
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