BANGI MP Ong Kian Ming has listed out 15 questions pertaining to Digital Nasional Bhd’s (DNB) 5G rollout.

He said the fact that DNB is wholly responsible for the 5G infrastructure raises concerns of security, as well as the monopolistic nature of the setup.

DNB is wholly owned by the Finance Ministry, and has been tasked with building the infrastructure.

It will be the sole owner of the spectrum, which it will then lease to telecommunication service providers.

“The adoption of the Single Wholesale Network (SWN) 5G rollout model where DNB owns the 5G spectrum, appoints the contractor for the 5G rollout and then charges the telco operators for access to the SWN network raises many questions that need to be answered in a transparent, accurate and easy-to-understand manner.

“Here is a list of my questions to DNB, which reflects my own concerns on the proposed model used for the 5G rollout in Malaysia:

1. Pakatan Harapan mooted a model where telco companies own a majority state in a single entity while the government held a minority stake. This was changed by Perikatan Nasional. whereby the government now holds 100% stake. Wouldn’t telecommunication companies with years of experience and infrastructure be better suited for the rollout?
2. The government could potentially raise billions if it had auctioned the 5G spectrum. Why was this not explored? What are the financial implications to the government, telco companies and consumers?
3. Only Mexico is using a SWN model and the appointed company filed for bankruptcy as it was not able to meet its target. Why is the government confident DNB won’t face the same fate?
4. Why is the government confident that the SWN model can deliver low cost 5G and operational cost compared to telcos with their own infrastructure? Why is it also not willing to negotiate with telcos to come up with a cost-sharing model?
5. DNB is said to be not the “best” winner for the 5G contract. Will DNB release full details of its bid and explain its technological advantages?
6. The total cost of the rollout is RM18.9 billion, RM11 billion for infrastructure and RM7.9 billion for corporate cost. This was reduced to RM16.5 billion, RM12 billion for infrastructure and RM4.5 billion for corporate costs. Can DNB explain the changes and provide a breakdown?
7. How will the SWN model ensure there will be 5G coverage in urban areas soon and how will it be deployed in rural areas?
8. There are concurrent expansions of the 4G network by Jendela as well as the 5G rollout by DNB. What are the steps taken to ensure smooth coordination?
9. Telco players are concerned they will be charged “unfairly” to access the 5G SWN. What is DNB’s response to this?
10. If the 5G network is controlled and operated by DNB, would it be more difficult for telcos to compete based on speed and quality of delivery?
11. There have been calls for another network infrastructure provider to reduce the risk of deployment failure. Is this something DNB and the government are willing to consider?
12. DNB has set out 5G targets for itself and the SWN. Will DNB report its 5G rollout progress publicly, on a monthly or quarterly basis like what Jendela.my is doing via its quarterly reports?
13. If the government were to change the SWN to something else, what would happen to the existing contract signed with infrastructure providers? Will this impact investors confidence?
14. If the SWN model is replaced with a model where telcos are responsible for the rollout, how will ownership of the 5G spectrum be allocated?
15. If the SWN model is changed and a different or additional provider is selected for the rollout, how will existing security concerns be addressed, especially from hacking and slicing?” – February 7, 2022.