DNB-SWN 5G network model decision lauded by telcos

PUTRAJAYA – The decision to implement Malaysia’s 5G network as a single wholesale network (SWN) was announced by the the government recently and local telcos are positive about it.

The decision was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz with Communications Multimedia Minister, Tan Sri Annuar Musa.

The implementation will include offering telcos up to 70% equity stake in Digital National Bhd (DNB) with both ministers saying that the model is the best solution to hasten the process of rolling out the 5G network in Malaysia.

“The participation of telcos in DNB would enable them to be involved in the implementation of the country’s 5G network. Telcos’ experience in developing 3G and 4G networks in Malaysia can also help the launch of the implementation of 5G network in Malaysia,” said the finance minister.

Tengku Zafrul said the government will hold 30% of DNB equity with the company to be regulated by the Ministry of Communications and Multimedia through the Communications and Multimedia Commission (MCMC), like other telcos.

He added that DNB’s target is to cover 80% of the Malaysia’s populated area by 2024 and to keep the wholesale price of 5G affordable.

Telcos welcome decision of SWN

Several local telcos have since released statements after the government’s announcement on using the DNB-SWN model.

Among them are Ericson Malaysia Sdn Bhd that said they believe this decision would enable all parties involved in the Malaysian 5G project to move ahead with certainty.

“We remain committed to delivering a world class 5G experience and bridge digital divide in partnership with DNB and the broader Malaysian ICT ecosystem, for the people of Malaysia,” the company said to Bernama.

Meanwhile, Mobile Network Operators (MNOs) Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, Maxis Bhd, and U Mobile Sdn Bhd released a combined statement that stated they welcome the government’s decision to adopt the DNB-SWN model.

“We (MNOs ) will engage with the government and key industry players on the details of implementing this model, including the proposed shareholding offer and transaction process.

“We also believe in the benefits that 5G will bring to businesses, customers, and government in strengthening Malaysia’s competitiveness in the (ASEAN) region,” they said.

Telekom Malaysia Bhd (TM) believes the SWN model would mean all telcos have a shared responsibility to meet the objectives of 5G for Malaysia and reflects the national aspiration for an inclusive digital Malaysia.

In a statement, TM said that DNB shall focus on network-building towards a faster rollout of coverage but in a cost-effective manner.

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