In May 2023, the government of Malaysia said it would allow the operation of a second 5G network in the country
Malaysia’s communications minister, Fahmi Fadzil, said that the country has achieved its target of 80% 5G coverage in populated areas, paving the way for the launch of a second 5G network, local press reported.
Fahmi also said the country would shift to a dual 5G network model soon, because local mobile operators are currently relying on the country’s 5G wholesale network supplier Digital Nasional Berhad (DNB) for the provision of 5G services nationwide.
DNB was set up by the Malaysian government in 2021 as a special-purpose vehicle to develop the country’s 5G network infrastructure, which private telecommunications firms would use to offer 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
The special task force on 5G will reportedly meet Friday with DNB, the Malaysian Communications and Multimedia Commission (MCMC) and telcos to discuss the way forward.
The Malaysian government had previously stated that Malaysia would shift to a dual 5G network once DNB achieved 80% coverage in populated areas.
Fadzil said the switch to a dual 5G wholesale network was likely to be announced within a month, according to the reports.
The official also said the 80% coverage in the 5G field was achieved after the local carriers signed the agreement to acquire equity in DNB.
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Last month, Malaysia’s five major mobile operators signed share subscription agreements to acquire a collective 70% equity stake in DNB.
Under the terms of the deal, local telcos CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International will each buy a 14% stake in DNB. Each telco will invest a total of RM233 million ($50 million).
The share subscriptions are expected to be completed between February and April 2024 after due diligence requirements are met, according to the Malaysian government.
Fadzil had said that the government will retain a “golden” share in DNB, as well as the remaining 30% stake.
In May, the government announced it will enable the deployment of a second 5G network in 2024, adding that a new entity will be created to manage Malaysia’s second 5G network. The official also confirmed that the government will hold no stake in the second 5G network.
In November, DNB had launched what it claims to be the largest 5G experience center in the country in partnership with Swedish vendor Ericsson. The main aim of the new facility is to raise awareness and promote the adoption of 5G across Malaysia. The new 5G center, located at the lobby of the TRX Exchange 106 tower where the DNB office is located, is meant to serve as a learning hub for customers, partners, industry, academia as well as government officials to understand the potential of 5G technology by showing the performance of 5G products and services through live demonstrations and technology showcases.