UNITED Nations adviser on 5G Strategy and Policy Brett Haan believes a single wholesale network (SWN) is more than worth exploring for Malaysia, as the goal was to have infrastructure stability. 

“For the Malaysian case, I think it is more than worth exploring. Because I think the goal here is to have infrastructure stability.

“Common infrastructure that MNO (mobile network operators) can do, but new actors can also apply to that,” he said at a briefing on 5G Policy and Strategy for a Rapid National Deployment in Kuala Lumpur today.  

Haan, who is also with the Brazil Economics Ministry, was responding if SWN was the right model for Malaysia and reasons why the government needs to fund this project rather than let MNOs invest in the project. 

This, he said, is so that there can be service sector competition and growth in the country. 

“It’s something more than valued and worth exploring.  

“Again it’s the Malaysian government’s decision. They made the policy and then adapted the policy. What I understand now is that the policy is being implemented.”

Last Saturday, Digital Nasional Bhd chief executive officer Ralph Marshall said the primary motivation for the government in opting for SWN approach is to address the issue of internet connection in the country.

He said it is to address the poor internet connectivity available in Malaysia, particularly in the suburban and rural areas where even 4G coverage and quality are, at best, marginal. 

Among others, Marshall said it is to remove the need for MNOs to invest heavily in 5G networks and to permit them to focus on the improvement required of their existing 4G and fibre networks under the Jendela plan.

This, he said, is also to ensure that all players – existing and new ones – have fair and equal access to the 5G network and its capacity. 

He added that this is to position communications as a utility and pass on cost savings to end users, while making it easier for them to take up 5G services. 

“Existing telco operators have shown that it is not in their DNA to embrace a cost recovery model to roll out 5G infrastructure and pass on savings to end users.”

Haan said that it was very important for the government to create confidence in working with MNOs, larger government and private enterprises, as well as stakeholders.  

“This is so that the people (Malaysians) see the benefits of this model. On the digital divide, I think many people have lost confidence in their country’s broadband coverage.  

“This is a great opportunity to regain their confidence,” he said.

As for the dual wholesale network (DWN), Hann personally believes the model creates more confusion.  

“Who is responsible for what with the dual model? 

“The other issue with the dual model is that if you go four or five years or so, you will have to separate out the companies, which is the functional structure of separation and that never goes easily.

“It’s difficult and creates confusion in the marketplace.”

On Monday, after Marshall’s explanation on the implementation of Malaysia’s 5G roll-out, DAP lawmaker Dr Ong Kian Ming wanted the heads of telecommunication companies to answer more questions arising from Marshall’s answers. 

In an open statement to Maxis, Celcom, Digi, U Mobile and Yes, the Bangi MP said the argument from DNB and Finance Ministry for a single entity to roll out 5G given the high infrastructure costs involved was convincing. 

But he asked the MNOs if the contention that the MNOs had failed to work together to come up with a workable ownership structure for a consortium-led SWN for the 5G roll-out was accurate. – February 16, 2022.