by RADZI RAZAK / pic TMR FILE 

MALAYSIA will introduce a second 5G service provider early next year, Communications and Digital Minister Fahmi Fadzil said on Wednesday, as the government responds to monopoly allegations of Digital Nasional Bhd (DNB).

Fahmi said the second service provider would be enforced under the second phase of the 5G rollout plan after DNB reaches 80% coverage in populated areas – targeted to be by year-end. Currently, DNB has achieved a populated area range of 57.8% nationwide.

He said the Cabinet has opted for a dual-network model to ensure no “single point of failure” and avoid monopolising on 5G rollout.

The minister also pledged to implement the model based on conditions that align with global practices that offer network diversity for the people and the industrial sector.

“This decision was made with a shift in focus to elements of adoption and innovation based on comprehensive 5G technology.

“This model also takes into account the sustainability of the telecommunications industry ecosystem in Malaysia as well as ending the monopolistic element often associated with DNB,” he told a press conference.

Fahmi said the second entity would be subjected to the same pricing deal as DNB to ensure the affordability of the 5G network

“For DNB, the wholesale price per gigabit is 12% to 13%. It will be the basis for entity B (second network),” he said.

Fahmi insisted that the deal between DNB and Swedish Telecommunications company Ericsson will be respected and the government will not be involved in the commercial deals of the second entity.

After a three-month tender process, Ericsson was appointed as the 5G vendor by DNB in 2020 with contracts worth RM11 billion. According to DNB, Ericsson was picked out of four players, and their estimated cost was around RM700 million lower than the next closest bid.