KUALA LUMPUR: Mobile network operators (MNOs) participating in Malaysia’s second 5G network will not pass any costs to consumers, says the Communications Ministry.

Its minister Fahmi Fadzil said that the MNOs have assured that there will be no additional costs for consumers after the rollout of the second network.

“We have commitments from all of the (telco) CEOs; there is no word on additional costs for consumers.

“This is promised to me, and we hold to that promise,” he said after witnessing the signing of a memorandum of understanding (MOU) between the Malaysian Communications and Multimedia Commission (MCMC) and the Malaysian Investment Development Authority (Mida).

The MCMC has been tasked with selecting a mobile network service provider to develop Malaysia’s second 5G network, commencing with the AIP (Application Information Package) process on July 1, Bernama reported.

On Dec 1, 2023, YTL Power International Bhd, CelcomDigi Bhd, Maxis Bhd and U Mobile Sdn Bhd finalised a share subscription agreement with Digital Nasional Bhd and the Ministry of Finance Incorporated (MoF Inc), paving the way for the transition to the 5G Dual Wholesale Network (DWN) model.

Fahmi said the government is fully committed to ensuring that the dual-network model promotes healthy competition in the telecommunications sector while ensuring its sustainability and improving connectivity for the people.

“It (the execution of the dual-network model) would not cause major implications to the government’s coffers,” the minister said.

In his speech earlier, Fahmi said 5G technology plays a crucial role in developing the country’s digital economy by fostering entrepreneurship and expanding small and medium enterprises (SMEs) in Malaysia.

He said the contribution of 5G to the national economy is also expected to boost the gross domestic product by creating new services and industries, developing new business models, and increasing productivity and efficiency across various touchpoints.

“The development of 5G aligns with the government’s goal of achieving inclusive growth and ensuring that digitalisation benefits all segments of society,” Fahmi said.

Regarding the MOU, Fahmi said it aims to enable vertical sectors and SMEs to leverage the use of 5G technology.

He said that through the MOU, MCMC will provide technical support and training in preparation for 5G integration while emphasising the importance of harnessing 5G technological advancements for the industries concerned.

Mida will identify potential companies that can utilise 5G technology to advance their business.

“This approach will ensure faster and more efficient 5G adoption and meet the needs of various sectors.

“Through this collective effort, the government will unlock the full potential of 5G, drive innovation, transform industries and shape a more connected Malay-sia.

“I hope that the signing of this MOU will open a new chapter for the vertical sectors and SMEs in the country, making them more competitive and enhancing productivity in managing their business,” said Fahmi.

https://www.thestar.com.my/news/nation/2024/07/05/no-extra-costs-for-second-5g-network