Each 5G network should cost roughly the same as a cost-efficiently rolled out single wholesale network but the total cost would be more, said a report by CGS-CIMB Research.
“But with traffic split two ways, the cost per gigabyte would be higher,” the report said, according to Bernama.
CGS-CIMB Research suggested that the pullout from DNB, wholly owned by the finance ministry, might be one of two scenarios following the government announcement of a review of the 5G rollout.
It said mobile network operators could begin to introduce 5G technology side-by-side with existing 4G technology, through the use of dynamic spectrum sharing.
Such a system would not offer much faster speeds than 4G, but would rapidly widen 5G coverage by riding on the existing 4G network coverage, it said.
CGS-CIMB suggested that the 5G rollout could be managed “more optimally based on traffic demand” by privately-owned networks being more nimble to cater to commercial needs.
The firm suggested that a dual 5G wholesale network could come about through a reallocation of 5G spectrum to DNB and the second 5G network.
The second network might be owned by mobile networks such as Maxis and U Mobile which did not take up stakes in DNB when the government offered mobile operators an equity share in the company.
Should that dual-network come about, and “if spectrum cost and coverage or quality of service requirements are not too punitive”, it would effectively mark a return to the pre-DNB era with network owners sharing their networks to mitigate the cost of the rollout.
The CGS-CIMB report comes in the wake of the government deciding to review the single wholesale network method to roll out 5G networks. A decision is expected by the end of the month.
In December, Prime Minister Anwar Ibrahim had ordered a review of an RM11 billion contract awarded by DNB to Ericsson
Communications and digital minister Fahmi Fadzil said in January that a paper on the 5G network implementation policy will be presented to the Cabinet before the end of March.