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Exclusive-Malaysia plans to set up second 5G network from next year -sources

Yantoultra Ngui and Rozanna Latiff

In the most recent policy shake-up aimed at dismantling monopolies and fostering competition by Prime Minister Anwar Ibrahim’s’s six-month-old administration, KUALA LUMPUR / SINGAPORE( Reuters )- Malaysia plans to introduce a second 5G network starting next year, four sources told Reuters.

Since its launch in December 2021, the state agency Digital Nasional Berhad( DNB ) has repeatedly postponed the rollout of Malaysia’s’s 5G network due to industry concerns about pricing and transparency as well as problems that a single government-run network would lead to nationalized monopolies.

Anwar has mandated critiques of billions of dollars in government tasks since taking office in November of last year in an effort to improve management and reduce wasteful spending. In order to guarantee better public services, he has already vowed to increase market.

Four places with knowledge of conversations told Reuters, declining to be identified due to the sensitivity of the situation, that Anwar’s’s public is now planning to launch a single 5G network starting in January 2024 to contest DNBs switch on the market.

According to the communications and electronic government, no decision has been made regarding 5G as of yet.

Without further explanation, Ahmad Firdaus Mohd, news secretary to the communications minister, stated in a text message that the issue was still being reviewed.

In March of last year, the former administration turned down a proposal from major carriers for another 5G provider. With the membership of two telecommunication companies, DNB launched its system in late 2021 on a trial basis.

All five mobile operators in the nation — all but one — agreed in October to use DNB’s’s network, opening up 5G services to more customers after months of protracted negotiations.

Nevertheless, after Anwar took office in November and announced a review of the 5G method, claiming it had not been honestly formulated by the previous management, the roll-out came under scrutiny once more. DNB refuted that assertion.

According to the sources, the plan for a second network will be dependent on DNB and mobile operators making sure that 5G network coverage reaches the government’s’s goal of 80 % of the country populated areas by the end of this year.

On Wednesday, the cupboard is anticipated to receive a request on the plan, according to two of the resources.

Maxis Bhd, U Mobile, Telekom Malaysia, and YTL Communications, four Indonesian company companies, did not respond right away to post calls.

CelcomDigi, a second company, and DNB both declined to comment. CelcomDigi asked the government more questions.

According to media reports, communications secretary Fahmi Fadzil stated on Friday that he hoped to bring up 5G issues in the government this week. Last week, Fahmi reported that 55 % of populated areas had 5G network coverage.

A simple system, according to DNB, would lower costs, increase productivity, and hasten infrastructure construction.

The potential impact of the next 5G network on DNB’s’s current contracts with other mobile operators and its development companion, the Swedish telecom behemoth Ericsson, was unclear.

Last year, three carriers — CelcomDigi, Telekom, and YTL — contained an agreement to collectively acquire 65 % of the company, with the government holding the remaining 35 %.

Maxis and U Mobile, two significant mobile operators, declined to acquire ownership in DNB, according to Reuters.

Later, U Mobile joined some provider companies in registering to use DNB’s’s 5G network. Maxis has stated that it will hold off until DNB’s’s public survey is finished.

( Reported by Yantoultra Ngui in Singapore and Rozanna Latiff in Kuala Lumpur; Tom Hogue edited. )

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