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Government receives bids for second 5G network from four telcos

KUALA LUMPUR: Four major mobile network operators (MNOs) have officially submitted their tenders to the government for the construction of a second wholesale 5G network.

Communications Minister Fahmi Fadzil. Fahmi said the MNOs are CelcomDigi Bhd, Maxis Bhd, UMobile and Telekom Malaysia Bhd.

"When the decision is made, it will be based on the tenders that have been submitted. The final decision will be made in the near future.

"I have not yet received information from the Malaysian Communications and Multimedia Commission (MCMC) as they will be the ones to decide," he told reporters at the sidelines of the Huawei Malaysia Supplier Ecosystem Convention 2024.

Fahmi expects the decision process to be completed soon with an announcement expected by the end of the year.

The MCMC has been tasked with selecting a mobile network service provider to develop Malaysia's second 5G network, commencing with the AIP (Application Information Package) process on July 1.

On Dec 1, 2023, YTL Power International Bhd, CelcomDigi, Maxis, Telekom Malaysia and U Mobile finalised a share subscription agreement with DNB and the Ministry of Finance Incorporated (MoF Inc.).

Fahmi said the government remains committed and is ready to roll out the second 5G network.

The dual-network 5G model, he said, is designed to break the existing monopoly in 5G services, promote healthy competition within the telecommunications sector, and ensure the public has access to high-quality and affordable 5G services.

In addition, Fahmi said Malaysia's robust digital economic growth has been pivotal in bridging the digital divide, extending connectivity to even the remote areas in Sabah and Sarawak.

Nearly half of the 600 telecommunications towers being built under the Sarawak Multimedia Authority Rural Telecommunication (SMART600) initiative are already in operation providing 4G coverage, with all expected to be in operation by mid-2025.

"The ministry is also working to ensure that Sabah gets better internet and phone coverage through the remaining 342 new telecommunications towers that are being implemented in stages.

"This is expected to be fully operational by the end of 2025," he added.

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