AN expansion to the 5G network coverage can further lower the internet prices offered to users now.

Deputy Communications and Digital Minister Teo Nie Ching said this was because Digital Nasional Bhd (DNB), the body responsible for the development of the network, has offered 5G services for RM0.13 sen per GB, through a reference cost offer.

Teo said the price offered is lower compared to the current cost of 5G services, which is RM1.68 cents per GB.

“So, we believe that with this coverage expansion, the prices of our internet can go down further,” she said during the question and answer session in the Dewan Rakyat today.

She was answering a supplementary question from Lim Guan Eng (Bagan-PH), who wanted to know if the cost of 5G services can be reduced if it is implemented nationwide.

Teo said currently, 5G services coverage stands at 54.7%. She said the ministry is confident of achieving its target of 80% coverage for populated areas like Cameron Highlands (Pahang) and Sibu (Sarawak) by year-end.

She said the government would also ensure the cost of implementing 5G services would remain at RM16.5 billion to enable users to enjoy the internet at a reasonable price.

When replying to a supplementary question from Rushdan Rusmi (Padang Besar-PN) on whether DNB will remain under the Finance Ministry or be authorised to be operated by another telecommunication company, Teo said discussions to this end have begun.

“But, the agreement (discussions) have not been finalised yet and we (the ministry) together with the telco are negotiating because the telco has several questions. (For instance) if it acquires DNB shares, what are its rights as a shareholder?

“So, there are details that need to be refined before the telco makes a decision,” she said.

Meanwhile, in reply to Lim’s original question of the cost and quality of 5G services offered by the company to users, Teo said the prices offered by the service provider are determined by market forces.

Teo said if the market fails to function efficiently, then the Malaysian Communications and Multimedia Commission (MCMC) can intervene in setting the prices.

“However, the MCMC regulates access prices at the wholesale level, with ‘wholesale’ permission through the legal instrument of the Commission Determination on the Mandatory Standard on Access Pricing or MSAP and studies on these access prices are made periodically.

“Through regulation at the wholesale level, it can indirectly reduce prices at the retail level, to consumers to a more competitive level,” she said.

She said the 5G services have just been offered in the country and, for now, service providers are adopting a neutral technology concept in offering prices with no difference between 5G and 4G services. – Bernama, March 13, 2023.