Malaysia’s 5G network was launched in December 2021 by the state agency Digital Nasional Berhad (DNB) with current coverage of 55% in populated areas.
Heaptalk, Jakarta — Malaysia is reportedly preparing plans to build a second 5G network in 2024. As told by Reuters, this move is part of the latest policy shakeup to eliminate monopolies and encourage industrial competition undertaken by Prime Minister Anwar Ibrahim’s government.
Previously, Malaysia’s 5G deployment by state agency Digital Nasional Berhad (DNB) had been delayed several times since its launch in December 2021, citing industry concerns over price and transparency. In addition, the delay also examined that the operation of a network managed by the government would lead to a nationalized monopoly.
Prime Minister Anwar has ordered a review of the billions of dollars spent on government projects after taking office in November 2022. The review aims to strengthen governance and minimize wasteful spending. In addition, Anwar also emphasized that his party would boost competition in the 5G network industry to provide better services for the public.
Currently, Anwar and his team plan to deliver a second 5G network starting in January 2024 as a move to counter DNB’s dominance in the market, cited by Reuters from four sources familiar with the matter.
Meanwhile, Communication and Digital Minister Fahmi Fadzil told Reuters that the government has yet to decide on the launch of the second 5G network. “Right now, we are still in the process of reviewing. We have had discussions with all related and relevant parties,” voiced Fahmi.
He added, “We have not come to a decision yet. So, we have to wait for the announcement when it happens.” According to Fahmi, the Cabinet will discuss the substance on April 19, 2023.
The second 5G network recommendation was rejected
In March 2022, the government previously rejected recommendations by major carriers for a second 5G provider. DNB expanded its 5G network in late 2021 in cooperation with two telecommunications companies for trials.
Seven months later, four out of five cellular operators in Malaysia approved the use of the DNB network. This expands the opportunities for 5G services to more customers.
After Prime Minister Anwar took office in November 2022, he announced a review of the 5G plan. According to him, the plan had not been transparently formulated by the previous government. However, DNB denied this statement.
The second 5G network construction plan will depend on DNB and mobile operators ensuring that the network coverage reaches the government’s target of 80% of the country’s populated areas by the end of 2023. According to Fahmi, 5G network coverage reached 55% in populated areas in the second week of April 2023.
