How will you stop new 5G provider abusing DNB role, MCMC asked

How will you stop new 5G provider abusing DNB role, MCMC asked

Former MP Ong Kian Ming says the commission should also disclose the second 5G network's financial impact on Digital Nasional Bhd.

5g
MCMC must specify coverage and speed requirements for both DNB and the second 5G network, the rollout timeline for the second network, and any additional spectrum allocation, says former MP Ong Kian Ming. (Reuters pic)
PETALING JAYA:
A former MP has called on the Malaysian Communications and Multimedia Commission (MCMC) to clarify the impact of the country’s second 5G network on the shareholding structures of both Digital Nasional Bhd (DNB) and the new network.

Former Bangi MP Ong Kian Ming said MCMC should also state how it intends to ensure that the telecommunications company will not abuse its position in DNB for its own benefit.

“It is the responsibility of MCMC to issue a clear statement, including a mandate for coverage and speed (requirements) for both DNB and the second network, as well as the rollout timeline for the second network and any additional spectrum allocation.

“(MCMC should also say) how it will ensure the telco will not abuse its position in DNB to benefit its own 5G network rollout,” he told FMT.

Ong Kian Ming
Ong Kian Ming.

The DAP man said MCMC should also disclose the financial impact of the second 5G network on DNB, and the potential financial exposure of the finance ministry.

“(It should also outline) the policy direction for rolling out 5G to the remaining 20% of coverage of populated areas not yet achieved by DNB, as well as policies for the deployment of private and indoor 5G networks, which have not been widely discussed publicly,” he said.

Ong, a former deputy trade minister, also raised concerns about congestion in DNB’s existing 5G network, saying part of the spectrum has been “set aside” for the second network though the contract has not yet been awarded.

He said this might be part of MCMC’s process, which requires reserving this spectrum to facilitate bidding for the second network.

“As the 5G network becomes congested, mobile coverage will likely revert to the 4G networks, defeating one of the primary purposes of the 5G rollout, which was to alleviate congestion on existing 4G networks,” he said.

DNB was set up by the government to deploy 5G infrastructure and as the sole provider of 5G services to telcos in the country on a wholesale basis.

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.

In June, CelcomDigi, Maxis, U Mobile, and YTL Communications confirmed successfully meeting the conditions of a share subscription agreement, allowing them to acquire a collective 70% stake in DNB.

Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal has criticised the second 5G network, saying it could give rise to a conflict of interests.

The Bersatu Youth chief called for Putrajaya to halt plans for the second 5G network His party colleague, Tasek Gelugor MP Wan Saiful Wan Jan, expressed similar reservations about the plan.

Last month, 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 cited reports that RM900 million may have to be written off as equipment designated for the current frequency has been left unused after the frequency is allocated to the second network.

Khairy said to maintain the 100Mbps internet speed guarantee, DNB might need an additional RM1.6 billion due to spectrum allocation changes.

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