Malaysia’s telecom companies are calling for a dual wholesale network but declined to share details

0

KUALA LUMPUR (February 18): Four mobile network operators (MNOs) – Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, Maxis Bhd and U Mobile Sdn Bhd – have recommended that the government allow a Dual Wholesale Network (DWN) model to be developed is and will be operated by two consortiums involving the government, Digital Nasional Bhd (DNB), and MNOs willing to invest.

In a joint statement on Friday (February 18), the companies said they had submitted their proposal to create DWN.

“We see the DWN model as a viable option that leverages the skills of MNOs, existing resources including infrastructure, supply chain and the experience of thousands of Malaysian technical talents. We are committed and look forward to doing our part in realizing the long-term sustainable benefits for the nation, a win-win solution for the government, Rakyat and industry,” they added.

“Taking this opportunity, we would like to once again express our full support for the government’s agenda through the MyDigital initiative and the development of the digital economy in Malaysia, where 5G networks are among the critical infrastructures,” the telecom companies said.

Without sharing details in the statement, they said the telecoms industry has held talks with the government and directly provided views and facts on the matter.

“We would like to take this opportunity once again to express our full support for the government’s agenda through the MyDigital initiative and the development of the digital economy in Malaysia, where 5G networks are among the critical infrastructures.

“As the matter will be referred to the Cabinet as announced by our Minister of Communications and Multimedia, we will respectfully await the Government’s decision,” they said.

Kenanga Research sees downside revenue risks for MNOs over the next three to five years if the government opts for a single wholesale network (SWN) model, as MNOs may have to pay upfront costs to DNB even if they are slow to monetize 5G services , according to the Research Outfit Note on Monday (February 14).

Kenanga points out that there are no clear guidelines as to when the government’s final decision on the model for nationwide 5G network rollout will be announced and expects it to be in either February or March.

On February 7th, Dr. Ong Kian Ming, Member of Parliament for Bangi and Deputy Director for Civic Education of the Democratic Action Party, listed 15 questions on DNB’s 5G rollout.

DNB is a Treasury special purpose vehicle that is fully responsible for the 5G infrastructure.

Ong had also written an open letter with 10 questions to MNOs on 5G rollout.

Also read:
Wholesale single network model poses downside risks to telecom profitability – Kenanga
DNB’s Ralph Marshall answers Ong Kian Ming’s questions on 5G rollout
Ong Kian Ming’s open letter to mobile network operators in Malaysia on 5G rollout

Share.

Comments are closed.