FAHMI Fadzil has urged Communications and Multimedia Minister Annuar Musa to end the monopoly of state-owned network wholesaler Digital Nasional Bhd (DNB) in the 5G network roll-out in Malaysia.

The Lembah Pantai MP said he called on Annuar to hold “a deeper engagement with industry players” on the issue.

“I hope he (Annuar) can discuss with the finance minister to cancel the monopoly of DNB, and we can implement (the 5G roll-out) like how it was done in the past,” he told a press conference at the Parliament building today.

Reuters reported that all local mobile carriers have disagreed to use 5G due to pricing and transparency issues. This comes as the government plans to launch the network in three urban areas next month.

Reuters received DNB’s confirmation that no agreement has been reached with mobile carriers, with the firm acknowledging its initial timeline for negotiations as “too optimistic”.

DNB is a special purpose vehicle under the Finance Ministry set up to roll out the 5G network. It will finance the roll-out, which is said to cost around RM11 billion, via market financing, and as such, is not a government-fund beneficiary.

Fahmi said it is worrying that the firm has been appointed as the sole 5G wholesale service operator, and that the Malaysian Communications and Multimedia Commission (MCMC) has discouraged telcos from bidding for their own spectrums.

It is possible that 5G would have been available now if telcos are allowed to bid for their own spectrum and not for the “artificial suppression” to depend on DNB, he added.

He said if DNB fails to service its debts and if the roll-out does not take off as planned, there will be contingent liabilities to bear, adding that Malaysians may see a delay in receiving 5G service.

While it is uncertain when agreements on telco spectrums will materialise, the rolling cost of the firm will continue, he added.

Fahmi urged the government to come clean on who has interest in DNB and will benefit from it to the Dewan Rakyat.

Syed Ibrahim Syed Noh (Ledang-PH) said Putrajaya and MCMC, as a regulatory body, also have not addressed wholesale pricing issues.

“We urge the government to look at long-term impacts. We may not see the impacts of this problem now, but we do not want this to turn into a long-standing issue that can turn into a cancer that affects the economic benefits… to the people.” – November 11, 2021.