In May 2023, the Malaysian government announced that it would allow the operation of the second 5G network in the country.
Malaysian Communications Minister Fahmi Fadzil said the country had achieved its goal of 80% 5G coverage in densely populated areas, paving the way for the launch of a second 5G network, local newspapers reported. reported.
Fahmi also said the country will soon have dual 5G networks, as local mobile operators are currently dependent on the country’s 5G wholesale network supplier, Digital Nasional Berhad (DNB), for the provision of nationwide 5G services. He said that he would shift to a new model.
DNB was established by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure for use by private telecommunications companies to provide 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
A special committee on 5G will reportedly meet with DNB, the Malaysian Communications and Multimedia Commission (MCMC) and telcos on Friday to discuss the way forward.
The Malaysian government had previously said that Malaysia would move to dual 5G networks once DNB achieves 80% coverage in populated areas.
According to reports, Fazil said the switch to a dual 5G wholesale network is likely to be announced within a month.
The official also said that 80% coverage of the 5G sector was achieved as local carriers signed an agreement to acquire DNB’s shares.
Last month, Malaysia’s five major mobile phone operators entered into a share subscription agreement to collectively acquire 70% of DNB’s shares.
Under the terms of the agreement, local telecom companies CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International will each acquire a 14% stake in DNB. Each carrier will invest a total of RM233 million ($50 million).
According to the Malaysian government, the share subscription is expected to be completed between February and April 2024 after meeting due diligence requirements.
Fazil said the government would hold a “golden” stake in DNB and the remaining 30% stake.
In May, the government announced that it will enable the rollout of a second 5G network in 2024, and a new organization will be created to manage Malaysia’s second 5G network. he added. The official also confirmed that the government has no stake in the second 5G network.
In November, DNB partnered with Swedish vendor Ericsson to launch what it says is the country’s largest 5G experience center. The main purpose of the new facility is to increase awareness and accelerate the adoption of 5G across Malaysia. The new 5G center will be located in the lobby of the TRX Exchange 106 tower, where DNB offices are located, and will serve as a learning hub for customers, partners, industry, academia and government officials to understand the potential of his 5G technology. The purpose is By demonstrating the performance of 5G products and services through live demonstrations and technology showcases.
