KUALA LUMPUR (March 2): Digital Nasional Bhd (DNB), the special purpose vehicle (SPV) that will undertake the deployment of the 5G infrastructure and network nationwide, will be subject to the regulatory oversight of the Malaysian Communications and Multimedia Commission (MCMC).

In a statement, MCMC said this is because DNB will be licensed to operate under the Communications and Multimedia Act 1998 (CMA 1998), which will place it, like any other licensee in the communications and the multimedia industry, under its regulatory purview, "notwithstanding the fact that the entity is wholly owned by the government".

As such, MCMC said it will regulate and monitor DNB to ensure, among others, the optimum use of spectrum and that all telecommunications service providers will have open, fair and equal access in obtaining wholesale 5G network services for the development of retail services based on the 5G technology.

"The objective of making Malaysia a digitalised nation as with the announcement of MyDigital recently, will require a robust, resilient and speedy effort by all parties whilst adhering to the right governance and regulations.

"By removing the need for existing telecommunications companies to invest in 5G networks, their efforts and resources can continue to be focused on improving and expanding 4G services and fibre networks under JENDELA so crucial for the success of 5G deployment. This at the same time will ensure that the digital gap can be minimised," it said.

MCMC also highlighted that DNB will act as a wholesale neutral party that enables other licensed telecommunications companies to focus on the latest technologies to develop innovative retail services as service offerings to consumers, enterprises and even the government.

"The manner in which the wholesale services are offered by DNB will also be closely monitored by MCMC under the provisions of the CMA 1998. The speed and cost savings of the 5G deployment can be passed on to benefit the end users.

"In overseeing DNB, MCMC will remain focused on ensuring improved quality and expanded coverage of digital connectivity, and to facilitate new economic growth for the country through the opportunities that 5G will bring about," it added.