The Malaysian government is committed to rolling out its second 5G network by the end of this year. The only questions that remain are, when will the decision be made, and who will get the contract.
Malaysia’s 5G outdoor coverage has reached over 80 per cent in populated areas. We take a look at Malaysia’s 5G journey, and what it is all about.
SWN vs DN
The Single Wholesale Network (SWN) model was first considered by the Malaysian Communications and Multimedia Commission (MCMC) in 2019. However, it was only implemented in 2021. Critics went on to scream ‘monopoly!’
The government is now breaking that hold, but there are those who question the need for a 5G dual network (DN).
The debate for, and against SWN and DN continues. A second network will be seen as encouraging competition. This would (hopefully) mean better services and pricing for end-users.
Those in the industry know that there is enough demand for Malaysia’s telecommunications giants to recoup their investments. This explains why four telecommunications companies – Telekom Malaysia, CelcomDigi, Maxis, and U Mobile – have submitted bids to run Malaysia’s second 5G network.
On Aug 23, Telekom Malaysia announced that its agreement to buy a stake in Digital Nasional Bhd (DNB) had been terminated after its request for additional time to seek shareholders’ approval was declined.
Telekom Malaysia, in a statement, said this “does not affect its current 5G offerings to customers, because its 5G wholesale service subscription from DNB remains in place”.
What is DNB?
DNB was established in 2021 to deliver several key outcomes in line with the goals of the Malaysia Digital Economy Blueprint.
Its outcomes include accelerating the deployment of the 5G network in Malaysia, ensuring lower costs of capacity to boost 5G adoption, and realising the potential of 5G in Malaysia to stimulate economic activity and facilitate digitalisation.
Is 5G for the average consumer?
5G technology’s low latency and fast speeds are well-suited for In-Building Solutions (IBS) and private networks. A good example would be the deployment of the private 5G network at the Petronas liquefied natural gas (LNG) complex in Bintulu, Sarawak.
The Bintulu complex is the world’s third-largest LNG plant in a single location, with a production capacity of 29.8 million tonnes per annum. The 5G network is expected to improve productivity and increase operational efficiency and safety across critical production processes.
Generally speaking, the three service categories for 5G are:
i. Enhanced Mobile Broadband (eMBB)
ii. Ultra-Reliable and Low Latency Communications (URLLC)
iii. Massive Machine-Type Communications (mMTC)
Understanding eMBB, URLLC, mMTC
eMBB relates to the average consumer who uses their phones to download or stream videos on the go. It focuses on speed, capacity, and mobility. To the average Malaysian, that’s what 5G is all about.
However, the true economic value of 5G lies in the other two categories, URLLC and mMTC.
URLLC is used where data transfer needs to have as little lag as possible, and connections have to be reliable. Think of a surgery done remotely.
mMTC focuses on connecting large numbers of devices in a given area. A simple way to describe it is machine-to-machine communication, which is used in various fields – from smart agriculture to managing shipping routes.
Thus, it is evident that URLLC and mMTC will give telecommunications companies the return on investment on their 5G ventures. It simply boils down to enterprise usage.
