PUTRAJAYA has decided to implement a single wholesale network (SWN) to roll out the nation’s 5G network, Finance Minister Tengku Zafrul Tengku Abdul Aziz said today.

He, however, said that the government would allow telecommunication companies to hold equity in Digital Nasional Bhd (DNB), the special-purpose company established to drive the development of 5G infrastructure in Malaysia.

“As decided by the cabinet, the government will offer up to 70% of DNB’s equity to mobile network operators committed to access agreement for wholesale services.

“With the new ownership structure, the government will hold 30% equity,” Tengku Zafrul said at a press conference in Putrajaya today.

He said the SWN model was chosen after the government had considered various models for the distribution of the high-speed mobile internet connection, including those offered by the telcos.

Previously, telco companies were concerned that a single, state-run 5G network would result in a monopoly more costly than deploying 5G on their own. 

However, DBN said it would charge operators less to access the network than the cost incurred for 4G. 

Tengku Zafrul said this would be the best possible solution to accelerate 5G network needs as the government works on bridging the digital divide and realise national digitisation initiatives. 

“In addition, the implementation of this SWN model will ensure that there are no additional financial implications on the contract that the government entered with Ericsson (Malaysia) Sdn Bhd, the appointed network hardware provider, which has drawn up an implementation plan by optimising contract work and services for local vendors, with an estimated 61% of them able to benefit the Bumiputeras,” he said. 

Tengku Zafrul said maintaining the SWN model would boost investor confidence in the country. 

“The government was firm in its decision to maintain the SWN model and it also symbolises Malaysia’s public-private partnership model, as well as a strong private sector financing ecosystem, which as a whole will boost investor confidence in Malaysia,” he said.

The finance minister added that DNB would be regulated by the Communications and Multimedia Ministry, while the Ministry of Finance would monitor DNB in terms of governance as a shareholder. 

Communication and Multimedia Minister Annuar Musa, who was also present today, said people across the country should be able to enjoy access to high quality 5G services fairly, equitable and at an affordable price. 

“This is to help accelerate Malaysia’s post-pandemic economic recovery in the coming years. 

“The SWN model will help bridge the urban-rural digital divide to enable all Malaysians to enjoy high-quality 5G services,” he said. – March 16, 2022.