KUALA LUMPUR (May 24): Prime Minister Datuk Seri Anwar Ibrahim fended off Tasek Gelugor Member of Parliament (MP) Datuk Wan Saiful Wan Jan's question on monopolies in the supply of water, electricity and highways in Malaysia.
Bersatu’s Wan Saiful had enquired if the federal government is planning to break other monopolies, such as in electricity, water, highways, and the operation of trust schools under the Ministry of Education, following the government’s decision to introduce a second 5G network.
During the Prime Minister's question and answer session in Dewan Rakyat sitting on Tuesday (May 23), Anwar responded that he is in agreement that a monopoly situation is not beneficial.
He said the supply of water is not a monopoly as it falls under the purview of the state governments, while power is also not a monopoly as there are independent power producers.
He also pointed out that not all of the highways were built by the government, and there was competition among different concession holders.
“I agree in principle that monopolies, or in this context duopoly (referring to the dual 5G network), should not continue, competition should be encouraged that can give guarantees to consumers as well as lower cost,” Anwar said.
Wan Saiful had also asked if the second 5G network will cover both wholesale and retail and if the valuation of Digital Nasional Bhad (DNB) will be guaranteed after being handed over to private companies.
DNB was established in early March 2021 to drive the development of the 5G infrastructure in Malaysia. It is a Malaysian special-purpose vehicle company owned by the Ministry of Finance and regulated by the Malaysian Communications and Multimedia Commission (MCMC).
Earlier, Communications and Digital Minister Fahmi Fadzil announced that the Cabinet meeting on May 3 chaired by Anwar agreed that the implementation of 5G under a single network will continue until the end of 2023 when coverage is expected to reach 80% of populated areas. DNB will be taken over by a new entity following its scheduled achievement of 80% 5G coverage.
Wan Saiful quoted DNB’s value at RM15 billion by Maybank Investment Bank based on its spectrum allocation for 15 years.
In response, Anwar said that both 5G networks will have both wholesale and retail.
“Even though the rules and agreements with DNB apply, we have to understand that the transition to the second network is not (happening) now, but followed after the one DNB network, so that there is no duplication of costs,” he added.
“If we break now, it means the infrastructure that has been completed will be added again. So finally now, our decision is to use the existing infrastructure with the involvement of the existing telcos (telecommunication companies) so that it is more transparent.”
Wan Saiful’s questions came after Ampang MP Rodziah Ismail had asked Anwar to state whether the government's decision to move away from the single wholesale network model resulted in losses in terms of breach of international contracts, security risks, additional financial implications for the government and increased 5G prices for consumers.
Anwar did not quantify on losses or gains. However, he said that “the implications of the government were greatly reduced due to the involvement of telcos”.
He reiterated that Putrajaya’s decision for a second 5G network was to end the monopoly element associated with DNB to increase competition. He also assured that the MCMC regulatory framework and role are to be strengthened to ensure good coverage and quality of Malaysia’s 5G network.
Source: TheEdge - 25 May 2023
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024
Created by edgeinvest | Mar 28, 2024