Several mobile operators will provide service in Malaysia using the government’s state-owned 5G network, after months of negotiations, according to The Hundu. The agreement had been slowed by fears that using the state-run network would lead to a monopoly.
The 5G network, which is run by state agency Digital Nasional Berhad (DNB), will host Celcom Axiata, DiGi Telecommunications, Telekom Malaysia, U Mobile and YTL Communications. DNB will sell access to the network at wholesale prices.
A shared 5G network will enable Malaysian mobile network operators to potentially save billions of dollars in infrastructure construction costs over 10 years, according to Free Malaysia Today. “This will enable MNOs to focus on improving 4G services and providing innovative and high-value 5G services to benefit people and businesses,” said finance minister Tengku Zafrul Aziz. Celcom, DiGi, Telekom and YTL have purchased a collective 65 percent stake in DNB this month, while U Mobile and Maxis declined to take an equity position, The Hundu reported.
The 5G network currently covers 11 million people across Malaysia, or more than 33 percent of the population. Plans are in place to cover 80 percent of the population by the end of 2024, according to Aziz.
One U.S. company that will be watching the developments in Malaysia closely is Everest Infrastructure Partners ANZ Pty Ltd. The towerco signed an agreement with Naza Communications Sdn Bhd to collaborate on investment in existing wireless telecommunications infrastructure in Malaysia, Inside Towers reported.
By J. Sharpe Smith, Inside Towers Technology Editor
Reader Interactions