5G services will be available in Malaysia on some carrier networks as soon as tomorrow
After numerous 5G setbacks related to spectrum pricing and transparency, five of Malaysia’s major service providers—Telekom Malaysia, U Mobile, Celcom Axiata, YTL Communications and DiGi Telecommunications—have finalized the terms of an agreement with the Malaysian government to access the 5G network run by state-owned Digital Nasional Berhad (DNB).
The Malaysian government, arguing that a single shared network would reduce costs and improve efficiency, chose to forego a spectrum auction and instead launch with DNB. The country’s largest operators, however, have been less than supportive of this approach, claiming that, beyond issues around high pricing and lack of transparency, they are more capable of rolling out 5G themselves. Because they were still refusing involvement with the wholesaler in early 2022, the government proposed that the operators take a combined 70% stake in DNB.
U Mobile, which initially rejected the government-led network in September, now says it will make 5G services commercially available to its customers beginning this Thursday. Celcom Axiata announced that is will automatically enable access to 5G services for customers on selected post-paid and prepaid plans beginning tomorrow, while Digi has only revealed plans to continue 5G network testing with DNB.
The terms of the agreement, which is valid for 10 years, state that no one operator could own a stake greater than 20%, while in the case of mergers between two companies, the stake could not exceed 25%. The government will hold the remaining 30% stake. Celcom Axiata and Digi Telecommunications will each take up a 12.5% stake, YTL Communications and TM will have 20% and the Ministry of Finance will hold the remaining 35%.
However, U Mobile and Maxis Bhd have opted out. Maxis Bhd, notably, has also not signed an access agreement with DNB.
According to the Malaysian Communications and Multimedia Commission (MCMC), 5G coverage in the country reached 33.2% of populated areas as of Sept 30.
