Mobile Network Trade Body Backs Plan For Second 5g Wholesaler

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Digital Nasional Berhad is the government-appointed agency in charge of the 5G rollout. (AFP pic)PETALING JAYA: A European mobile network trade body has backed the idea of a second 5G wholesale network for Malaysia in competition with Digital Nasional Berhad (DNB), the government agency for the rollout of the new technology.
Julian Gorman, head of Asia-Pacific for UK-based Global System for Mobile Communications Association, said competition would bring significant benefits to telecommunication companies and customers.
He told FMT the mobile telecommunications companies need to find new sources of revenue growth as well as optimise their cost structure to meet the increase in investment required to bring 5G to life.
“Multiple wholesale networks increase competition in network technology and deployment and promote investment in innovation to sustain leadership in market share,” he said.

According to a Reuters report, Celcom, Digi, Maxis and U Mobile have recommended that the government allow two wholesale 5G networks, each to be built and operated by a consortium of carriers.
The government currently plans to run a single wholesale network handled by DNB, which would build, own and operate the network and would lease the spectrum to mobile providers.
Gorman said a single wholesale network was likely to reduce innovation because there would not be competition and service differentiation.
“Without competition, there are no dynamic forces at play to push forward innovation,” he said.
A single wholesale network would offer the same network coverage, quality and functionality to all its customers.
“Competing providers could deliver significant benefits to consumers such as faster speeds and higher reliability,” he said. - FMT

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