5G: Dual network to benefit industry with MNOs' enterprise solution offerings, says Fahmi

KUALA LUMPUR (May 17): The shift from a single wholesale network to a dual network for 5G rollout in 2024 is set to benefit the industry with a variation of enterprise solution offerings by mobile network operators (MNOs), according to the Ministry of Communications and Digital (KKD).

Its minister Fahmi Fadzil said the government's decision to have a dual network for 5G is more on business consideration that allows MNOs to cater for different enterprise solutions that suit their specific customers.

"Any telecommunication company (telco) that has some control over infrastructure will be able to roll out specific enterprise solutions that might be suitable for their customers.

"Some telcos might be looking at certain sectors such as [refineries for] oil and gas (for their 5G services), whereas some might be looking at retail and certain types of factories," he said in a media briefing on 5G direction recently.

According to Fahmi, the decision to switch to a dual network for 5G rollout was made after the review committee comprising representatives from KKD and the Ministry of Finance (MOF) conducted 19 engagement sessions with various parties including industry players.

"There were at least eight (5G network) models reviewed including some variations, hybrids and augmentation of past models.

"In the end, the Cabinet decided that this is the model (dual network)... Digital National Bhd (DNB) remains and continues to complete 80% 5G coverage of populated areas (CoPA) before subsequently shifting to a dual network model.

"I believe there are some arguments made about removing monopoly and also the question of sustainability of the telecommunication industry. For the government, the chief concern is that we honour whatever contract that has been signed and reached the target set before," said Fahmi.

Entity A and B in the dual network

Meanwhile, Fahmi noted that as the target to reach 80% 5G coverage remained intact under DNB, the operation and development of DNB’s network will be continued by entity A. Entity B will then be formed with the participation of MNOs to complement the dual network model.

He added that there is no consensus yet on which telco or service providers will be part of entity B as the discussion is still ongoing.

"In general, the transition (to dual network) will start immediately after we reach 80% CoPA. We expect that by the beginning of next year entity B will start operations to build its network.

"Before the end of this year, we will know who will join entity B, [in which] there is no government holding... like in DNB," he said.

According to Fahmi, upon being identified, entity B will start to build its own network to offer 5G services, while entity A will continue to operate.

"We will have two separate networks that will have more or less the same coverage," he added.

Special task force for 5G rollout

On May 9, the KKD announced the establishment of a special task force to ensure the implementation of the 5G network under DNB achieves 80% CoPA by the end of this year.

The task force will be jointly chaired by Treasury secretary general Datuk Johan Mahmood Merican and KKD secretary general Datuk Mohamad Fauzi Md Isa with the Malaysian Communications and Multimedia Commission (MCMC) as the secretariat.

Fahmi said the task force will be meeting fortnightly to discuss issues involving the status of the 5G rollout and to ensure a smooth transition to the dual network model in early 2024.

"They will then report to me and I will present (the outcome) to the Cabinet meeting.

"But of course, the main focus of the task force would be to ensure that 5G rollout in the country is expedited so that we reach 80% (CoPA) by the end of the year," he added.

Fahmi also highlighted that as of April 30, the total 5G coverage nationwide has reached 59.5% of populated areas, an increase from 57.8% as of the end of March this year.

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DNB 5G network to continue operating after migration to dual network model, says Fahmi