Communications and Digital Minister Fahmi Fadzil said that his ministry is hoping for an allocation under Budget 2024 to develop Malaysia’s 5G network. He said this during a town hall session held yesterday at Angkasapuri.
As reported by Bernama, Fahmi said “One of the important aspects is the implementation of 5G, the acceptance and usage of 5G among the stakeholders and industry players. I hope the allocation for 5G that we have appealed will be among the main considerations in the 2024 Budget because it is very important for the future of the country.”
At the moment, the national 5G network deployed by Digital Nasional Berhad has claimed to cover 70.2% of populated areas in Malaysia with 5,873 5G towers operational as of the end of September 2023. DNB has been mandated to accelerate its 5G deployment a year ahead of schedule to achieve 80% 5G population coverage with 7,509 sites by the end of this year.
Semasa saya ambil alih KKD, saya pernah nyatakan antara tumpuan utama saya adalah pembangunan infrastruktur telekomunikasi.
— Fahmi Fadzil 🇲🇾 (@fahmi_fadzil) October 9, 2023
Alhamdulillah melalui beberapa inisiatif yang dilaksanakan, pengguna 5G di Malaysia telah melonjak lebih 2 juta. pic.twitter.com/g6pOQXl6sL
At the moment, there are 2,486,433 5G subscriptions in Malaysia which translates to 7.4% penetration. The government has recently announced Pakej 5G Rahmah which provides users a minimum of 60GB of 5G data for RM60/month and a 5G phone bundle for RM240.
Questions remain on MOF’s stake in DNB
Back in May, the government announced a policy shift from a Single Wholesale Network to a Dual Network approach by the end of this year. A 5G task force has been formed to ensure a smooth transition, however, there are no new developments when it comes to the Share Subscription Agreement (SSA) between the telcos and DNB. All 5 telcos which include CelcomDigi, Maxis, U Mobile, TM and YTL Communications currently offer 5G services to consumers through a 10-year access agreement.
In July, Fahmi said all five telcos will be taking equity stakes in DNB and they will support DNB’s 5G development until it achieves 80% 5G population coverage. Initially, the government said it would withdraw its holding from DNB after 80% 5G population coverage is achieved. However, Fahmi recently said that the government will continue to hold their stake in DNB and no decision has been made on the divestment. DNB is a special purpose vehicle that’s currently owned by the Ministry of Finance.
Fahmi has also hinted since August that a new CEO for DNB will be appointed soon but no announcements have been made so far. Former DNB CEO Ralph Marshall stepped down after his two-year contract expired in March 2023.
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