THE government has yet to secure any major mobile carrier for its 5G network, as they have baulked at transparency and pricing issues, according to a Reuters report.

State-owned network wholesaler Digital Nasional Berhad (DNB) said it still hoped to launch 5G services in Kuala Lumpur, Cyberjaya and Putrajaya, despite the reluctance from the carriers.

“The target now is to have a live network, covering… a total of 500 sites by the end of December, with at least some operators on board to provide a 5G network to end-users,” DNB chief technology officer Ken Tan said.

While Communications and Multimedia Minister Annuar Musa was today upbeat about the rollout and Malaysia’s ability to become a leader in 5G, the report said the country is lagging behind its regional neighbours.

Industry reticence is indicative of wider corporate scepticism of the government, transparency and possible interference. Concerns also stem from continued political instability and the fallout from the 1MDB scandal centred on former prime minister Najib Razak, who – despite his criminal conviction for his part in the scandal – remains a key figure in national politics.

Meanwhile, DNB admitted that its timeline for signing carriers up may have been “too optimistic” but declined to comment on what would happen if no carrier could be secured.

Multiple sources told Reuters that the carriers’ chief concern was a nationalised monopoly, hurting their business and limiting their access to future technology.

Sources also indicated the government plan could cost the major telcos RM45 billion in market value, but further details were not forthcoming.

However, DNB said share prices had not moved much since it made its announcement in May.

DNB chief operating officer Dushyan Vaithiyanathan told Reuters the plan would likely cost only around RM16.5 billion, around half the RM30-35 billion carriers would have needed to spend to build the 5G network themselves.

Meanwhile, the company acknowledged concerns about transparency and regulation.

“We are working closely with (the regulators). We want the scrutiny, so that people cannot come in and change the principles of what we are aiming with 5G,” Dushyan said. – November 10, 2021.