A total of four telcos are in the running to build the second 5G network in Malaysia. The tender process ended on 31st July 2024, a month after the Malaysian Communications and Multimedia Commission (MCMC) issued the Application Information Package for the second 5G network.
As shared by Communications Minister Fahmi Fadzil, four of the five telcos who have signed the Share Subscription Agreement with Digital Nasional Berhad (DNB) have submitted bids for the second network. The four telcos are – CelcomDigi, Maxis, Telekom Malaysia and U Mobile.
The Minister said he will not interfere in the process and is leaving the matter to the MCMC. As quoted by Bernama, Fahmi said, “May the best company and supplier win”.
He added that the government expects a decision soon and he hopes that it can be finalised and announced within the year.
Under the Ministerial Order issued on 21 June 2024, the winner for the second 5G network bid will receive two 20MHz blocks (723MHz to 743MHz, 778MHz to 798MHz) for 700MHz and a 100MHz block (3.5GHz to 3.6GHz) for 3.5GHz spectrum.
Malaysia announced the 5G policy shift to transition from a Single Wholesale Network to a Dual Network back in May 2023 in a move to establish redundancy, increase network competition and dismantle any elements of monopoly associated with DNB. The transition finally gained traction after DNB achieved its mandated 80% 5G population coverage by the end of 2023 and major telcos completed their Share Subscription Agreement to acquire a stake in DNB.
Once a telco has been identified to build the second network, the winner of the bid will divest their interest in DNB. At the same time, the other telcos will remain with DNB to continue to operate and expand the 5G network. At the moment, all five telcos including YTL Communications (Yes 5G) are offering 5G with their existing access agreements with DNB.
Similar to the steps taken during the Celcom and Digi merger, the MCMC is tasked to ensure a fair playing field for the two networks. Responding to recent critics, Fahmi said DNB should be able to sustain its finances despite the deployment of the second 5G network. Deputy Communications Minister Teo Nie Ching told parliament that telcos will not be allowed to hold equity in both entities under the 5G dual wholesale network model to foster healthy competition.
Digital Minister Gobind Singh had said last month that the MCMC has taken steps to ensure that the 5G pricing will be maintained with two 5G networks. He recently dismissed claims that DNB could end up as a white elephant as the state-led 5G network has already achieved 82% 5G population coverage within 3 years.
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