Goh Lim Thye of Universiti Malaya estimated that setting up the network would cost billions which would ultimately be borne by consumers.
“Estimates suggest that deploying a nationwide 5G network can cost between RM7-10 billion.
“Duplicating this investment is likely to result in higher cumulative costs, straining the financial resources of companies involved and potentially leading to increased prices for consumers as these costs are passed on,” he said.
Internet veteran Mohamed Awang Lah suggested an infrastructure-sharing arrangement to avoid redundancy and increased costs for consumers.
Mohamed said if the government proceeds with the dual network model, the second network should cover the remaining 20% not covered by Digital Nasional Berhad (DNB).
“If you want the phone companies to build their own infrastructure, you double the infrastructure costs unnecessarily,” said Mohamed, former chief executive of Jaring, Malaysia’s first internet provider.
“Share the infrastructure. The second operator should have access to the first operator’s infrastructure. Whether it is rural or urban, it doesn’t matter. When the infrastructure is built in the rural areas both parties can share the infrastructure,” he told FMT.
Consumer advocate T Saravanan of the Federation of Malaysian Consumers Associations called for a “strategic pause” in the 5G rollout to reassess financial implications and reduce redundancies.
He said the pause would ensure that infrastructure investments are aligned with national interests and economic stability.
“It facilitates better coordination between different stakeholders, including the government, network providers, and consumer groups, ensuring that the rollout meets the needs of all consumers equitably,” he said.
The federal government has begun moves for a second 5G network operated by private telecommunications companies after having set up government-owned DNB in 2021 as the wholesaler of 5G services.
After complaints that DNB’s monopoly would stifle competition, the government agreed to allow a second network by the phone companies, after DNB achieves 80% coverage. The government also agreed to sell 70% of its stake in DNB to the mobile network operators.
Communications minister Fahmi Fadzil said the new entity would aim to reach 80% coverage within about two years.