The Malaysian government is going to roll out its second 5G network. It has already received proposals from several major players and is expected to make a decision soon.
While there has been much debate about the introduction of dual network, many countries have started adopting such an approach following the “failures” of a Single Wholesale Network (SWN).
Malaysia’s experience was even documented by GSM Association (GSMA) in its report, ‘Policy Trends in the Aftermath of Single Wholesale Networks’, published in January this year.
GSMA is a global organisation unifying the mobile ecosystem to discover, develop, and deliver innovation foundational to positive business environments and societal change.
In Chapter 2 of its report, ‘The demise of Single Wholesale Networks’, GSMA noted that supporters of SWNs argued that they would address some concerns better than the traditional model of network competition in some markets.
“These concerns generally included inadequate competition or lack of coverage in rural areas, inefficient use of radio spectrum, and fears that the private sector may lack incentives to maximise coverage or investment,” the report read.
“However, SWNs have not proved successful in solving any of these problems to date, and the plans have largely been abandoned for competition-based approaches. Government-initiated network monopolies mandate mobile operators and others to rely on wholesale services from the SWN as they serve and compete for retail customers.”
It added that while there are variations in the SWN proposals discussed and implemented by different governments, in most cases, operators are also limited to providing mobile broadband in one technology (4G or 5G) solely via the SWN.
It also provided examples of expectations and the realities of SWN. These realities include SWNs not being able to recoup investments, and governments being forced to solve challenges via reversions and investments.
In its list of ‘Global examples of deployments, updates and reversals’, Malaysia joins Mexico, Belarus, Rwanda, Colombia, Poland, and Kazakhstan in ditching SWN.
GSMA, in its summary, said enabling competition and encouraging private sector investments are proven methods of developing connectivity in underserved areas. The growth of mobile broadband, and with it the social and economic development of the world, depends on collaboration, rather than intervention.
Those familiar with the situation in Malaysia said the local telco giants, in the thick of the second network race, simply need to build out from their existing structures. This will ensure better connectivity.
Some of them believe that Malaysia’s 5G rollout was not properly thought through. Others fear that Digital Nasional Berhad (DNB) – established, among others, to accelerate the deployment of 5G infrastructure and network in Malaysia – would be made redundant, as it has already served its mission, with more than 80 per cent coverage of populated areas (COPA) nationwide.
So what’s next for DNB?
The government has assured that DNB would not be a “white elephant”, and that DNB still has a big role to play in the ecosystem. DNB can focus on private network enterprises and help empower small-medium enterprises.
While the DNB is an agency under the Digital Ministry, it is the MCMC that sets licensing conditions for 5G operators. It has been suggested that MCMC look at the big picture – by ensuring that both DNB and the second operator engage in healthy competition.
Currently, DNB has the entire 200MHz block of the 3.5GHz spectrum, and there is talk that it could be slashed to 100MHz. Perhaps a viable option would be to offer DNB and the second operator 150MHz each to avoid network congestion.
