Malaysia’s telecommunication sector is undergoing a significant transformation as the government announces a shift from a single wholesale network model to a dual-network model for the implementation of the 5G network. This decision aims to give telecommunication companies (telcos) more control and flexibility in managing their 5G networks.
Under the new model, the implementation of the 5G network will be led by a special purpose vehicle called Digital National Bhd (DNB). DNB’s main objective is to achieve 80% coverage of populated areas. However, the government is also finalizing a second network that will operate alongside DNB. The introduction of this second wholesale network is expected to promote innovation and collaboration among telcos, harnessing 5G features like network slicing and multi-access edge computing.
To facilitate the development of Malaysia’s 5G network, smooth deployment is a top priority for mobile network operators (MNOs). CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd have agreed to acquire equity stakes in DNB. The government will retain a 30% stake and hold a Special Share in DNB.
CelcomDigi, formed through the merger of Celcom and Digi, has already begun integrating and modernizing their networks. This consolidation effort aims to reach 30% completion by the end of this year, with further progress expected in the following years. As the market leader, CelcomDigi will have more control and influence, driving initiatives focused on operational efficiency and customer experience.
Projections suggest that Malaysia’s telecommunications market will experience a modest 2.6% year-on-year growth by 2024. Mobile services, driven by the surge in data and IoT revenues, are anticipated to grow by 3.4% year-on-year. It is estimated that 5G adoption will represent approximately 12% of total mobile users by the end of 2024. On the other hand, fixed services are projected to have minimal growth and remain relatively stagnant.
In order to ensure widespread access to 5G connectivity, the government has introduced the 5G Rahmah package and the Civil Servant Rahmah postpaid package, providing incentives for individuals to experience the benefits of 5G technology.
Overall, Malaysia’s transition to a dual-network model for 5G implementation aims to drive innovation, enhance connectivity, and support the growth of the telecommunication sector in the country.
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The source of the article is from the blog lisboatv.pt