Zafrul Assures 5g Services Will Be Cheaper Than 4g For Telcos Consumers

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PARLIAMENT | Finance Minister Tengku Zafrul Abdul Aziz has assured that the 5G network service by Digital Nasional Berhad (DNB) will be cheaper than the 4G network for both telecommunication companies (telcos) and consumers.
This is because the Communication and Multimedia Commission (MCMC) will regulate the prices charged by DNB, he said.
“I have been made to understand that DNB will charge less than 20 sen for every gigabyte (GB) of 5G to telcos.
“For comparison, this is far lower compared to the incremental costs for every 4G GB produced by the telcos at a rate of 45 to 55 sen for every GB,” Tengku Zafrul said in the Dewan Rakyat today.
He was responding to Lukanisman Awang Sauni (GPS-Sibuti) who had asked the ministry to respond to claims that telcos did not want to register for the 5G network with DNB due to its high cost.
Zafrul further said that telcos will only pay DNB between RM350 million and RM400 million a year for the 5G network, which is more than 50 percent less than the RM1 billion telcos are paying every year for the 4G network.
“So I believe that the telcos will welcome the set price when it is informed to them in the future,” he added.

Finance Minister Tengku Zafrul Abdul Aziz
When asked if this will mean cheaper 5G services for consumers as well, Zafrul replied affirmatively.
“The price or charges for 5G services in the future for the rakyat is expected to be far cheaper compared to 4G right now,” he said.
The minister acknowledged that the ‘single wholesale network’ approach they are using has failed in other countries.
However, he said Malaysia has studied the failures to ensure they will not be repeated here.
“Telcos want to maintain their position especially in ensuring their margin of profit is guaranteed.
“But the model used by DNB will encourage the telcos to compete with each other in terms of pricing, products and services because they will save from the infrastructure model prepared by DNB,” he added.
Once the 5G network is rolled out, the rakyat is expected to be able to enjoy Internet speeds of up to 100 times faster than now, he said.
DNB is a special purpose vehicle (SPV) wholly owned by MOF Inc. It has signed a contract with Ericsson Malaysia for RM11 billion to build the 5G infrastructure in the country.
Critics have said the DNB model lacks transparency and questioned why the government did not leave the matter to the private sector, which is seen to have more expertise in this field. - Mkini

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