KUALA LUMPUR (Dec 20): Malaysia’s unconventional 5G deployment strategy has proven effective, according to internet connectivity intelligence provider Ookla Research, which rated the nation third globally for 5G download speed, which clocked in at 485.24 Mbps in the third quarter this year (3Q2023).
This came ahead of the government’s move to abolish the 5G Single Wholesale Network Model (SWM) next year, by giving up substantial control to the next generation network infrastructure to the private sector and build a second 5G network under the Dual Network Model, which according to now Communications Minister Fahmi Fadzil, will prevent single point failure with such redundancy.
“Malaysia’s remarkable achievement in reaching the third spot globally for 5G download speed, with a reported speed of 485.24 Mbps in Q3 2023, is particularly noteworthy. Despite launching its nationwide 5G network less than two years ago, Malaysia’s unconventional deployment strategy has proven effective,” said Ookla in a statement dated Tuesday.
During 3Q2023, Ookla said the United Arab Emirates and South Korea stood out as leaders in 5G performance, boasting the fastest median 5G download speeds globally at 592.01 Mbps and 507.59 Mbps, respectively.
“Our top 10 list also includes Malaysia, Qatar, Brazil, the Dominican Republic, Kuwait, Macau, Singapore and India. The shift in the top 10 rankings reveals dynamic changes, with Malaysia, the Dominican Republic, and India making significant strides, while Bulgaria, Saudi Arabia, New Zealand and Bahrain dropped out of the rankings,” it said.
Malaysia rolled out its 5G network through a special purpose vehicle Digital Nasional Bhd (DNB), which was given the mandate to own and manage all 5G spectrum and infrastructure to ensure efficiency in providing cheap and quality connection, even for rural areas whose return on investment (ROI) might be low.
However, the government recently decided to sell its 100% stake in the RM16 billion 5G project to five mobile network operators (MNOs) at RM500.5 million plus a RM1.17 billion zero-interest shareholders’ advance, while taking over RM450 million advances the Ministry of Finance provided to DNB.
The policy decision marks a reversal of the SWM deployment strategy, allowing subsequent 5G deployment to be spearheaded by private MNOs, which had poor track record in rolling out 4G network without government intervention.
Nonetheless, Fahmi, who is amongst the many critics against the nation’s 5G SWM model before being appointed into the Cabinet, recently said the government will retain its special share after divesting its 100% stake in DNB.
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