Mohamed also emphasised that mobile network operators should not be shareholders of DNB to ensure neutrality and to allow them to compete on an equal footing.
“There is no need to have a second 5G provider. The infrastructure of a provider can be designed for resiliency to avoid a single point of failure,” said Mohamed, the former chief executive of Jaring, Malaysia’s first internet provider.
The government had agreed to introduce a second 5G service provider in which it would not hold a stake, following complaints about DNB holding a monopoly of the 5G network.
This was contingent on DNB achieving 80% coverage in populated areas, which it had achieved in December last year. In April, DNB’s 5G coverage stood at 81.5%.
A requirement for allowing the second network was that all mobile network operators would acquire a stake in DNB, resulting in CelcomDigi, Maxis, U Mobile and YTL Communications collectively obtaining a 65% share in the company.
However, the competition among telecommunications companies to develop the second network raised concerns from Tasek Gelugor MP Wan Saiful Wan Jan and Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal about potential conflicts of interest and the risk of the operators violating competition rules.
Under the Communications and Multimedia Act. companies licensed by the Malaysian Communications and Multimedia Commission are prohibited from engaging in activities that diminish competition in the communications market.
‘No real competition’
Mohamed questioned whether a second 5G operator would create real and effective competition, suggesting that separating wholesalers from retailers was crucial for fostering a competitive environment.
He added that the second 5G operator would face unfair competition, especially if the government remains a shareholder of DNB.
“The government should not own any competing operators, it should just play a regulatory role,” he said.
However, if a second operator is established, Mohamed said it should share existing and new passive infrastructure with DNB to reduce costs and expand coverage.
To address concerns about recouping the government’s past investments in DNB, Mohamed suggested a mechanism be devised for the government to collect fees from 5G operators and MNOs without burdening end-users.
Recently, former science, technology and innovation minister Khairy Jamaluddin warned that introducing a second 5G network could lead to DNB’s failure, resulting in taxpayers bearing the losses.
He also highlighted that RM900 million might be written off due to unused equipment designated for the current frequency, which would now be allocated to the second network.
Mohamed stressed the importance of ensuring fair competition at all levels for the benefit of end-users and service providers, as this would ultimately improve the quality of services and lower prices.
“Perhaps we can take this opportunity to reform the telecommunications industry: the government should not be involved in business, while wholesalers and retailers should be completely separated,” he said.