The development of 5G infrastructure appears to have received allocation under Budget 2023. During the tabling by Finance Minister Tengku Zafrul, it was revealed that RM1.3 billion will be utilised for the expansion of 5G coverage to cover 70% of highly populated areas.
He said Digital Nasional Berhad (DNB) plans to spend RM1.3 billion for infrastructure expenditure in 2023. As a result, Keluarga Malaysia will enjoy faster internet speeds and cheaper 5G access.
The announcement during the tabling of the budget seems to imply that public funds will be used for DNB which raises some questions about the actual funding of the single wholesale network. The Finance Minister said last year that the RM15 billion cost to develop 5G will be borne by the private sector. Meanwhile, DNB CEO Ralph Marshall said in his response to Bangi MP Dr Ong Kian Ming that “DNB is committed to rolling out the 5G network and infrastructure at a cost of RM16.5 billion over 10 years, with no government funding or guarantees.“
Malaysia’s 5G stalemate continues
DNB plans to achieve 40% 5G population coverage by the end of 2022 and to reach 80% by the end of 2024. Communications and Multimedia Minister Tan Sri Annuar Musa recently shared that the 5G infrastructure is ready at over 2,000 locations but the 5G implementation for the public is to be carried out by licenced telcos.
At the moment, YTL Communication’s Yes 5G remains the first and only telco to offer commercial 5G services while Celcom has started its 5G friendly user trials with selected customers. After missing several deadlines, Annuar Musa hopes all telcos will settle their 5G agreements by 30 September but so far there hasn’t been any major development on the 5G equity deal and access agreements. The Ministry of Finance currently owns 100% of DNB and they are allowing telcos to take up 70% equity in the single wholesale network.
A total of six telcos were supposed to sign an equity deal in DNB by 31st August 2022 but Maxis and U Mobile decided not to proceed with the deal. DNB said the remaining four telcos which include Celcom, Digi, Telekom Malaysia and YTL Communications are still interested. Tengku Zafrul said last month that TM and YTL have obtained approval from their board members and are ready to sign and the government is open to allowing foreign telcos to come in if outstanding shares are not subscribed.
[ UPDATE 07/10/22 20:30 ]: DNB has announced that four telcos have completed their equity deal. Celcom, Digi and TM are expected to roll out 5G services starting this month.
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