They say the disgruntlement among telco executives points to an uphill battle for the special purpose vehicle (SPV) which was set up by the government earlier this year to build and manage the network.
A Reuters report on Wednesday quoted several sources as saying none of the local mobile players have agreed to use Putrajaya’s 5G network, which was rolled out on Wednesday, citing transparency and pricing issues.
However, in another news report, DNB was reported to have said that it had not begun formal negotiations with providers as the necessary offer documents have yet to be finalised.
Speaking to FMT, PKR treasurer Lee Chean Chung said the stand-off between telcos and DNB would only delay the 5G rollout and jeopardise the country’s digitalisation ambitions and the mobile economy.
“Do not forget that DNB is regulated under the finance ministry, not the Malaysian Communications and Multimedia Commission (MCMC),” he said. “Usually mobile network operators are receptive to MCMC’s influence because it is the regulator and can decide on their fate.
“However, DNB under the finance ministry doesn’t have such influence. If MCMC doesn’t help DNB to pressure operators, the situation will become challenging.”
He said DNB would still need to find a way to repay suppliers Ericsson, which has agreed to build the network assets for DNB at a cost of RM11 billion.
“I challenge the finance minister to come forward and defend DNB,” Lee said.
Economist Carmelo Ferlito said the emergence of the issue had proven yet again that governments could not force technological change.
The CEO of the Center for Market Education said innovation would come as a result of disruptive technology entering the market and being leveraged to great effect, which would force others to adapt and improve.
“Industrial revolutions are not planned. They happen first and we conceptualise them after the fact,” he said.
Ferlito added that if the government insisted on maintaining the current system, it risked trying to lead a revolution without followers.
“Or it can drop the idea of having a government-led digital revolution, leaving market players to enter the game instead.
“This would allow the emergence of a solution which is consistent with market demand and, in the end, would be beneficial to consumers, even if it means allowing foreign players to participate.”