KUALA LUMPUR (Feb 24): The government wants “full participation” of telecommunication operators (telcos) in the roll-out of 5G networks in the country, which is currently conducted by government-linked company Digital Nasional Bhd, said Prime Minister Datuk Seri Anwar Ibrahim.
“The Unity Government now takes an approach so that DNB is managed in a more transparent manner to achieve full participation by the telcos,” said Anwar, who is also finance minister.
“At the end of the day, what is important is to achieve full 5G network coverage at a price that is reasonable to the rakyat,” he said when tabling the revised Budget 2023 on Friday (Feb 24).
DNB is the holder of Malaysia’s 5G spectrum. It has been tasked to develop Malaysia’s 5G infrastructure and lease it out to the telcos under the single wholesale network (SWN) model. It is set to achieve 80% coverage by end-2023, from 50% at end-2022, Anwar said.
The company is 35%-owned by the government, while the remaining 65% is split between Celcom Axiata Bhd (12.5%), Digi Telecommunications Sdn Bhd (12.5%), YTL Communications Sdn Bhd (20%), and Telekom Malaysia Bhd (20%).
Maxis Bhd and U Mobile Sdn Bhd have opted out of the arrangement, according to past reports.
The arrangement follows pushback by telcos over the implementation of the SWN model, unlike previously where telcos were allocated respective spectrum. DNB's original plan was to offer a 70% stake to the six MNOs, which were initially allowed to take an 11.67% stake each under the SSAs (share subscription agreement).
Meanwhile, Anwar said RM725 million will be allocated for the continuation of the Jendela project in 2023, to improve connectivity in 47 industrial areas and 3,700 schools. Jendela is a government-funded programme to accelerate 4G network connectivity in the country.