KUALA LUMPUR (June 21): The government has directed the Malaysian Communications and Multimedia Commission (MCMC) to initiate the process of selecting mobile network operators (MNOs) to develop the country's second 5G network.
The MCMC has been directed to issue the Applicant Information Package (AIP) on July 1, for eligible MNOs to submit their bids to participate in the development of the second 5G network, according to Communications Minister Fahmi Fadzil.
“This process will be conducted transparently, based on the powers and provisions stipulated under the Communications and Multimedia Act 1998,” he said in a statement on Friday.
The announcement came after four of the five major MNOs in Malaysia announced that they had fulfilled the conditions precedent in subscribing to a 14% stake each in Digital Nasional Bhd (DNB), currently the country’s sole 5G network developer.
“The Ministry of Communications welcomes the announcement from DNB regarding the fulfilment of the conditions precedent for the share subscription agreement with CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS), U Mobile Sdn Bhd, and YTL Communications Sdn Bhd to hold shares in DNB. This is one of the key steps towards transitioning to a dual-network 5G model in Malaysia,” said Fahmi.
Telekom Malaysia Bhd (KL:TM) is the only one out of the five major MNOs that has yet to fulfil the conditions precedent.
The five major MNOs are supposed to collectively subscribe to a 70% stake in DNB, with the government holding the remaining 30% plus a golden share.
“The Ministry of Communications is committed to implementing the government's decision to transition the country to a dual-network 5G model, in an effort to end the monopoly of 5G services, thereby driving a more competitive and sustainable telecommunications industry,” Fahmi said.
“The implementation of the second 5G network will help improve 5G coverage, create healthy competition in the telecommunications sector, and ensure good quality and affordable 5G service plans for the public,” he added.
DNB is a special purpose vehicle wholly owned by the Ministry of Finance and mandated to roll out the next-generation internet service under the single wholesale network model.
While it has been accused of monopolising the provision of wholesale 5G services, DNB has enabled the 5G network in the nation, with over 80% coverage of populated areas nationwide, and lowered the wholesale cost of subscribing to the network.