KUALA LUMPUR (Nov 2): The Ministry of Finance has confirmed that five mobile network operators (MNOs), excluding Maxis Bhd, have signed their respective 5G access agreements with Digital Nasional Bhd (DNB) on Monday (Oct 31) for the 5G single wholesale network (SWN).
Caretaker Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the onboarding of Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, Telekom Malaysia Bhd (TM), U Mobile Sdn Bhd, and YTL Communications Sdn Bhd (Yes) with DNB will accelerate the implementation of the 5G SWN and save about RM30 billion in cost.
“With the implementation of the world's first 5G SWN by DNB, MNOs in the Malaysian telecommunications (telco) industry have the potential to save approximately RM30 billion in terms of infrastructure construction cost over the next 10 years,” Tengku Zafrul said in a statement on Wednesday.
“This will enable the MNOs to focus on improving 4G services, and providing innovative and high-value 5G services for the benefit of citizens and businesses,” he added.
The caretaker minister said the participation of the five MNOs with DNB will allow telco customers to receive the benefits of faster internet speeds and 5G connectivity at affordable prices, helping to achieve the country's vision in driving long-term digital economic development.
Tengku Zafrul also reiterated that the establishment of 5G services is expected to create 750,000 highly skilled jobs, and generate RM650 billion in gross domestic product cumulatively until 2030.
The cost of developing the 5G network is reportedly RM16.5 billion over a 10-year period, without any government funding or guarantees, other than an equity injection worth RM500 million to start the operation of DNB.
In October, the Malaysian Communications and Multimedia Commission said 5G network coverage in Malaysia had reached 33.2% of populated areas, or nearly 11 million people, as of Sept 30.
The commission also said that 5G coverage remains on track to reach 80% of populated areas by end-2024, a target set by the caretaker Government.