No Firm Case To Set Up Second 5g Network Says Ex Mp

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Ong Kian Ming said that Digital Nasional Bhd’s single wholesale network model has been effective in rapidly rolling out 5G network coverage.KUALA LUMPUR: No firm case for a second 5G network has been established, given the good job Digital Nasional Bhd (DNB) has done rolling out the network coverage, says former deputy international trade and industry minister Ong Kian Ming.
In a statement today, Ong noted that analytics company Opensignal has ranked Malaysia as having one of the fastest 5G speeds in the world.
“Importantly, the same ranking also shows that ‘Malaysia tops the table for the uplift in users’ average download speeds using 5G over 4G with a staggering 25.7-fold increase’,” he said.
Ong said that while this is partly due to Malaysia’s relatively low number of 5G users at present, DNB’s single wholesale network model has been effective in rapidly rolling out 5G coverage at speeds much better than 4G.
“If both the speed and coverage of the existing 5G network are more than sufficient, is there a need then for a second network?”
The former Bangi MP said this in response to Prime Minister Anwar Ibrahim’s statement on Wednesday that a switch to a dual 5G network would allow for more effective participation by China’s Huawei, providing for both “western and eastern” technology.
Ong expressed concern that this suggested there would be no open tender for the second 5G network.
“The award of this contract should be done via open tender and not by directly negotiating with any single entity, Huawei included.
“Upon assuming office in November 2022, one of the first things he (Anwar) did was to order an investigation into the way the current 5G network contract was awarded to Ericsson via DNB,” he said, adding that subsequent investigations found that the contract was indeed awarded transparently.
Ong also noted that the agreement on DNB’s shareholding structure had still not been signed by some mobile network operators (MNOs).
“This shareholding agreement is necessary to ensure the commitment by the major MNOs, especially Maxis and CelcomDigi, to DNB,” he said.
He pointed to allegations by some quarters that these MNOs may have vested interests in wanting to see DNB fail so that it could buy its assets at lower prices.
“The consequence is that the finance ministry will be left holding DNB’s debt without the major MNOs paying their share of 5G access fees that would be used to service DNB’s debt,” Ong said.
“This would lead to the socialisation of losses and privatisation of profits that Malaysia has seen many times in past administrations, which I’m sure Anwar would be keen to avoid, especially since his ministry will end up holding the bad debts.” - FMT

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