KUALA LUMPUR (Oct 9): Coverage of populated areas (CoPA) of Digital Nasional Bhd’s (DNB) 5G network in Malaysia crossed the 70% mark at end-September, inching closer to the 80% target set for the deployment of a second network wholesaler.
In the Dewan Rakyat on Monday, Communications and Digital Minister Fahmi Fadzil said a total of 5,873 5G sites were developed as at Sept 30, translating into a CoPA of 70.2%.
“DNB reached more than 3,500 sites in the first year (2022), and expects another 3,500 this year,” he added.
Meanwhile, Fahmi said the 5G adoption rate stands at 7.4% or 2.49 million subscribers.
“Thus far, six telecommunications companies offer 5G plans, namely CelcomDigi, Maxis, U Mobile, TM, YTL Communications and Yoodo,” he said.
He noted that the Rahmah 5G package launched at end-August had garnered a total of 50,991 subscriptions as at Sept 30.
Fahmi was responding to a question from Titiwangsa Member of Parliament Datuk Seri Johari Abdul Ghani, whereby the latter requested the minister to state the current status of 5G network development, as well as the number of subscriptions received through 5G network services.
Meanwhile, Johari followed up by questioning whether there is a need to have a second entity rolling out the 5G network in Malaysia, while the current adoption rate remains low and DNB’s financial sustainability is still in question — given that its financial commitments are being guaranteed by the government.
Fahmi noted that the 5G adoption rate being low among the retail consumer segment is in line with what is seen in other countries.
He specifically cited that in South Korea, the adoption rate of 5G among retail consumers is below 50%, despite a coverage of 95%.
He said the focus of the 5G roll-out is on its utility for enterprises, as exemplified by Petroliam Nasional Bhd (Petronas) launching the nation’s first private 5G network last week to optimise its internal operations.
“The crucial aspect is that 5G’s capabilities will be maximised by enterprises, and this will be a factor balancing the issue of DNB’s financial sustainability as an entity,” he added.
For more Parliament stories, click here.