KUALA LUMPUR: The single wholesale network (SWN) model for 5G will benefit all parties, besides offering faster connectivity and wider coverage at lower prices for individuals and businesses.
Former Prime Minister Tan Sri Muhyiddin Yassin said this amid reports that the government was reconsidering its decision over deploying the SWN model for the national rollout of the 5G network by Digital Nasional Bhd (DNB) following feedback from telcos and industry players.
"The wholly government-owned SWN model has the advantage of implementing 5G networks quickly, at the lowest cost and of better quality.
"The SWN model regulated by Malaysian Communications and Multimedia Commission (MCMC) will provide fair and equal access to all telecommunications companies thereby encouraging service-focused competition to customers.
"In addition, SWN will not be involved in the retail market based on the company's business model and also the license conditions by MCMC," he said in a statement today.
Muhyiddin, who was involved in various discussions, including engagement sessions during his tenure to make the SWN 5G effort a success hoped that the matter would not be politicised by any party for their interests.
"I have been informed that the recommendations put forward in the National 5G Task Force Report and MCMC's final report on allocation of spectrum bands for mobile broadband service in Malaysia were not successfully implemented due to differences of interest among telecommunication companies.
"This hampered efforts to share networks, save costs and roll out 5G as planned."
Muhyiddin said discussions were subsequently held with industry experts to propose the establishment of a Special Purpose Vehicle (SPV), wholly-owned by the government to implement SWN nationwide where the 5G capacity and wholesale access will be provided to existing telecommunications companies through this SPV.
The returns to the SPV is based on an affordable income model to ensure that 5G service charges to consumers are low, he said.
"On Feb 3, the Cabinet took note of the matter and on Feb 19, during the MyDigital, Malaysia Digital Economy Blueprint launch ceremony, the government announced this, and that 5G technology will be enjoyed by the people in stages starting year-end.
"This implementation model is very important to ensure the inclusion and provision of 5G services that can be enjoyed by every group of people in the future."
Among other reasons, he said DNB will bear the full implementation cost for the 5G network through sales revenue generated in addition to a combination of deferred financing as well as trade and working capital financing.
He further said the interests of Bumiputera contractors will also be given priority in 5G projects through DNB.
"This is because one of the conditions of the 5G project is the need to utilise more than 60 per cent of Bumiputera contractors and contractors from Malaysia in the next 10 years."
He noted that DNB executed the tender through Request for Proposal (RFP) for 5G Radio Access Network (RAN) on April 7 and it was completed on July 1.
"The tender evaluation conducted covered technical, commercial and socio-economic aspects. Based on the assessment, Ericsson (Malaysia) Sdn Bhd (Ericsson) has been appointed as the Network Equipment Provider (NEP).
"The tender process was also carried out after consultation with the telecommunications company, including in the aspect of network design."
Muhyiddin cautioned that should the government decide to change the model now, Malaysia would face several implications including loss of investor confidence due to change in government stance.
This, he said, could also bring serious financial and legal implications on the country and DNB in the event of any breach or termination of contract due to model change.