KUALA LUMPUR: Malaysia plans to launch a second 5G network in 2024 in the latest policy shake-up to end monopolies and promote competition by Prime Minister Anwar Ibrahim’s 6-month-old administration.
Malaysia’s 5G introduction by state agency Digital Nasional Berhad has seen repeated delays since its launch in December 2021 due to industry concerns over transparency and pricing and worries that a sole government-run network would result in a nationalized monopoly.
Since coming into power in November last year, Anwar Ibrahim has ordered reviews of billions of dollars in projects as he tries to strengthen governance and reduce wasteful spending. He has also vowed to strengthen competition to ensure better services for the public.
Anwar’s government plans to launch a second 5G network in January 2024 to challenge DNB’s monopoly on the market.
Previous government on second 5G provider
A recommendation by big carriers for a second 5G provider was rejected by the previous administration in March 2022. DNB deployed its network in 2021 with the participation of 2 telecommunications firms on a trial basis.
After months of protracted negotiations, all but one of the country’s five mobile operators agreed in October this year to use DNB’s network, opening Five G services to more customers.
However, the launch came under scrutiny again after Anwar Ibrahim took office in November and announced a review of the project, saying it had not been made transparently by the previous government. DNB rejected that claim.
The plan for a second network would be contingent on DNB and mobile operators ensuring that Five G network coverage reaches the government’s target of 80 per cent of the nation’s populated areas by the end of the current year.
A proposal on the project is likely to be submitted to the cabinet on Wednesday.
