“If the government cannot afford it or does not want to take the technological risk, it should sell DNB to a utility company that is not owned by any mobile network operator (MNO),” the source, speaking on condition of anonymity, told FMT.
He said, ideally, the government should avoid the risk of owning a 5G network on account of the rapid obsolescence of technology in general.
“This is a common issue with new technology. The question is whether the operator or owner of a 5G network can withstand the risk of technological obsolescence. Its usability declines faster than that of a car.
“Before you can even recover your capital costs, you have to move on to 6G and other generations. It’s just too expensive,” he said, adding that by taking it on, the government would simply be burdening taxpayers.
The source said the better option would be for a utility company to own and operate the 5G network.
“It should be owned by a business trust or investors interested in infrastructure,” the source said.
He also said the second network should target specific services like campus or semiconductor networks, with telcos left to focus on providing customer services at the application level.
The industry veteran also expressed concern that DNB’s current structure, which has major telcos as shareholders and with seats on the board, would “breed” conflict of interest issues.
DNB was set up by the government to deploy 5G infrastructure and as the sole provider of 5G services to MNOs in the country on a wholesale basis.
Following protests, the government announced plans for a second network and invited MNOs interested in operating it to take up shares in DNB.
In June, CelcomDigi, Maxis, U Mobile and YTL Communications all confirmed successfully meeting the conditions of a share subscription agreement, allowing them to acquire a collective 70% stake in DNB.
However, on June 28, Bersatu’s Wan Ahmad Fayhsal Wan Ahmad Kamal urged the government to halt plans for the second network, saying its scheme may lead to a conflict of interest among MNOs and within DNB itself.
Last month, Mohamed Awang Lah, the former chief executive of Jaring, Malaysia’s first internet provider, called for DNB to be dismantled or restructured so that it is independent of MNOs.