Digital Nasional Bhd (DNB) – a state-owned network wholesaler – told Reuters that no agreement had been reached with carriers, adding that “its initial timeline for negotiations had been too optimistic”.
However, it still hopes to launch the service in three urban centres, including Kuala Lumpur.
DNB will now seek formal long-term agreements early next year and talks to deploy 5G services will continue.
“The target now is to have a live network, covering … a total of 500 sites by the end of December, with at least some operators on board to provide a 5G network to end-users,” its chief technology officer Ken Tan was quoted as saying by Reuters.
But DNB did not say what would happen in the event none of the operators agreed to be part of the rollout.
Yesterday, communications and multimedia minister Annuar Musa said 5G services would be available in Kuala Lumpur, Putrajaya and Cyberjaya for the first year before it is expanded in stages until it reaches 36% nationwide coverage.
Next year, it will be launched in “densely-populated states”, including Penang, Selangor, Johor, Sabah and Sarawak, he said.
Quoting sources, Reuters reported that carriers which had poured money into infrastructure upgrades to support 5G services are now concerned the network plan “would result in a nationalised monopoly” which would hurt their business.
Some estimate that Putrajaya’s plan could wipe out up to RM45 billion in market value across all mobile operators.
Under the proposed pricing scheme, the telcos may end up paying more than they would have to if they rolled out their own plans.
According to internal documents sighted by Reuters, the carriers have asked for “extensive revisions” to DNB’s pricing proposal, on grounds that it did not reflect “the cost efficiencies promised”.
The sources also said the firms have sought assurances that “DNB would operate solely as a wholesale provider and would not reserve 5G capacity for itself or harbour any retail ambitions”.
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