PUTRAJAYA: The government has decided to stick with the single wholesale network (SWN) operated by Digital Nasional Bhd (DNB) for the multi-billion ringgit rollout of super high-speed 5G nationwide.
But mobile network operators (MNOs) such as Maxis Bhd, Axiata Group Bhd, Digi.Com Bhd and U Mobile have been offered to take up 70 per cent stakes in DNB as the government dilutes its shareholding to 30 per cent.
"After considering several different models for the national 5G network infrastructure, the government has decided to maintain the implementation of being supply-driven and based on cost recovery through the SWN. Maintaining the SWN model reflects government's firm stance on the continuity of policy in Malaysia," Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said.
"It also symbolises Malaysia's strong public-private partnership model, as well as a robust private sector financing ecosystem, all of which will boost investors' confidence in Malaysia," he told reporters at a press conference here today.
Tengku Zafrul said DNB, which is fully-owned by the Ministry of Finance (MoF), would be owned by both the government and MNOs which were committed to the access agreement under the SWN model.
He said DNB was projected to keep the current wholesale price of 5G at less than 20 sen per gigabyte (GB).
"This is expected to make the cost of 5G more affordable, encourage consumption among consumers and enterprises, as well as reduce the cost of living and the cost of doing business in Malaysia," he added.
Late last year, four major telcos in Malaysia recommended that an additional 5G network run parallel with DNB via dual wholesale network (DWN) model.
They contended that two organisations utilising existing telco assets to coordinate and collaborate in the first 12-18 months would achieve a faster rollout of 5G across Malaysia.
Putra Business School business development manager Associate Professor Dr Ahmed Razman Abdul Latiff said the proposed joint ownership of DNB between the government and MNOs was much better than the original single ownership structure.
"This will improve the governance and decision making of such entity as it will be commercially driven and focusing on efficiency as well. This will reflect positively on investors confidence as well as perception on the government and Malaysia as a reminder whole," Ahmed Razman told the New Straits Times.
Meanwhile, Communications and Multimedia Minister Tan Sri Annuar Musa said at 20 sen per GB, the government targeted that the cost for 5G would be cheaper than the current 4G network.
In December 2021, the MoF estimated that the total cost of the country's 5G coverage inclusive of network hardware and infrastructure at RM12.5 billion.
"The rakyat should be able to enjoy access to high quality 5G services fairly, equitably and at an affordable price, especially to help accelerate Malaysia's post-pandemic economic recovery in the years to come.
"The SWN model will help bridge the urban-rural 'digital divide' and enable all Malaysians to enjoy high quality 5G services and be widely available to them through telecommunication companies," Annuar said.
The government had set a target of 80 per cent population coverage within the three years of the rollout of 5G network, he added.