PETALING JAYA: Uncertainty over Malaysia’s 5G rollout will hinder the country’s ability to attract innovation and investment, a mobile network trade body said.
Julian Gorman, Asia-Pacific head for the UK-based Global System for Mobile Communications Association (GSMA), said Malaysia’s competitive ability to attract innovation and investment has been further diminished by a “perceived lack of progress” over its 5G rollout announced three years ago.
In 2020, the government announced that 5G would be implemented through Digital Nasional Bhd (DNB), a special purpose vehicle set up to run the services using a single wholesale network (SWN) model.
However, on May 3 this year, communications and digital minister Fahmi Fadzil said Putrajaya had agreed to allow a second 5G service provider into the market, scrapping the SWN model.
However, he said the rollout of the second network would only take place once the state-owned DNB achieves 80% coverage in populated areas.
He said he expected the second network to begin operating as early as January 2024.
Gorman said Putrajaya should consider a “retail-led model” with voluntary infrastructure sharing between mobile network operators (MNOs) instead, as this has proven to be the most popular approach for 5G deployment in other markets around the world.
Under the retail-led model, each MNO has a 5G spectrum, owns or controls network infrastructure, and sells directly to consumers.
In comparison, DNB’s SWN would have seen MNOs sell directly to consumers yet be unable to use network coverage and quality as a competitive differentiator as they would not have full control over the network.
“The retail-led model allows operators to compete using their own spectrum or by pooling their individual network infrastructure together,” Gorman told FMT.
“Network coverage and quality are key competitive differentiators, affording cost savings from sharing and incentivising innovation.”
Gorman said the benefits from a retail-led model includes increased innovation, more resilient networks and lessening cyber security risks.
He said the 80% coverage target set for DNB was not the only indicator 5G innovators and investors wanted to see to measure the network’s success.
“It’s also vital that the right environment for innovation and investment is in place, to ensure that the best 5G apps and new digital services exist in Malaysia to encourage consumer and business adoption,” he said.
Source: https://www.freemalaysiatoday.com/category/nation/2023/06/21/5g-uncertainty-lack-of-progress-hinders-investor-confidence-says-uk-mobile-trade-group/