Internet veteran Mohamed Awang Lah said there was only sketchy information on U Mobile’s selection.
“I hope the details on the conditions and key performance indicators of the second operator will be made public,” said Mohamad, former chief executive of Jaring, Malaysia’s first internet provider.
He said he did not understand the government’s statement that U Mobile “is allowed” to work with other mobile network operators.
“Does that mean U Mobile can operate alone?” said Mohamed, who is known in the industry as Mal.
U Mobile, a private company whose chairman is billionaire tycoon Vincent Tan, was named on Nov 2 as the operator of Malaysia’s second 5G wireless network.
Maxis, which had been considered the front-runner for the second network, said yesterday it would hold talks with the Malaysian Communications and Multimedia Commission (MCMC) on the rationale for its decision.
The company, rated as Malaysia’s second-largest mobile network operator, said it would have taken far less time and resources to roll out the second 5G network with its advanced capabilities.
CelcomDigi, the leading network provider, also said it would have been able to start almost immediately to build a network to match the existing 5G network already created by government-owned Digital Nasional Bhd (DNB).
Mohamad said 5G services should be managed by a neutral party to avoid conflict. and ensure equal access for all mobile companies. “Better yet, all companies should be allowed to operate their own 5G networks,” he said.
Julian Gorman, the Asia-Pacific head of the UK-based GSM association, said clear licensing requirements should be established, to ensure a balanced distribution of 5G services.
“The specific benefits (for service providers) will depend largely on the terms of U Mobile’s licence, which have not yet been fully disclosed,” he said.
“If retail network operators are allocated to a particular wholesale provider, the anticipated benefits of increased competition in the wholesale market may be limited,” he told FMT.
He hoped the second network could intensify competition, enabling service providers to lower prices, making 5G services more affordable and widely accessible.
Gorman said the primary focus should be on stimulating 5G innovation and transformation to support Malaysia’s digital ambitions.
5G refers to the fifth-generation of mobile network technology, and a new global wireless standard that promises the ability to connect everything together with greater speed, providing massive network capacity and improved efficiency.
Malaysia’s first 5G mobile network was rolled out by DNB, which was set up as a single wholesaler providing services to private wireless network companies.
Following intense lobbying by the telcos, the new government led by Pakatan Harapan decided to allow a second network to be set up, and to sell 70% of DNB to the private companies.
Shares were sold to Maxis, CelcomDigi, U Mobile and YTL Communications, with Telekom Malaysia awaiting shareholder approval for the deal.
However, the decision to establish a second network was criticised over potential conflicts of interest, anti-competitive behaviour, wastage of billions of taxpayers’ money, an increased digital divide between urban and rural areas, a decline in 5G service quality, and higher prices for consumers.