PUTRAJAYA: The Ministry of Communications has welcomed the announcement from Digital Nasional Berhad (DNB) regarding the fulfillment of conditions precedent for the Share Subscription Agreement (SSA) with CelcomDigi, Maxis, U Mobile, and YTL Communications to hold shares in DNB.
Its minister Fahmi Fadzil said the announcement is a key step towards transitioning to a dual-network 5G model in Malaysia.
"Today, I have directed the Malaysian Communications and Multimedia Commission (MCMC) to initiate the process of identifying and appointing a mobile network service provider (MNO) that will develop the second 5G network in Malaysia," he told reporters here today.
"This includes issuing the Applicant Information Package (AIP) on July 1, 2024," he added.
He explained that this will take time as MCMC has to go through the papers and will need about four to five days to prepare all of the documentation.
Fahmi assured that the process will be conducted transparently based on the powers and provisions enshrined under the Communications and Multimedia Act 1998.
"The Ministry of Communications is committed to implementing the government's decision for the country to transition to a dual-network 5G model to eliminate the monopoly of 5G services. This will drive a more competitive and sustainable telecommunications industry," he said.
The implementation of this second 5G network will help enhance 5G coverage, foster healthy competition in the telecommunications sector, and ensure affordable plans and high-quality 5G services for the public.
Fahmi, however, said that the fifth telco Telekom Malaysia Bhd (TM) has until Aug 21, 2024, to get shareholder approval to complete its SSA.
"God willing, by the end of the third or early fourth quarter this year, we will complete this process (of identifying the MNO that will lead the initiative) be completed," he added.
Commenting on when the dual-network 5G model will be available to the public, Fahmi said he couldn't give the exact timeline at the moment.
"From the perspective of MCMC, along with all the networks that have previously been created, the MNOs need time to develop the second network, according to their specific business plan," he said.
He also said that one of the objectives of dual-network 5G is to ensure the sustainability of the entire telecommunications ecosystem.
"Secondly, we want to encourage competition. So when we move from a single use network to a dual network, we believe there will be competition, and this will be a positive move for the country, people and businesses," he added.
Fahmi said the availability of dual-network 5G will create a wider 5G coverage in the country, which currently stands at 81.5 per cent.
"Besides that, there will be fewer network breakdown and more affordable service due to the competition among MNOs," he said, adding that this is the commitment from the telcos.
"The price of the second network will at least be the same if not lower," he added.