The reports on Digital Nasional Berhad having signed on Telekom Malaysia on 5G trial has been confirmed by the largest telecommunication operator in the country.
In a statement sent out to the media, TM said that it will be conducting 5G trials with DNB to optimise the services made available. During the pilot trial, unifi mobile postpaid customers with certified 5G devices will be able to experience 5G services in selected areas within Kuala Lumpur, Putrajaya, and Cyberjaya. No indication has been given on the coverage area or on the exact date.
This comes as pressure builds on the sole 5G assignee by the Government to start with roll-out activity before the year concludes. DNB the company formed by the Ministry of Finance to undertake the nationwide coverage for 5G is being questioned in parliament for the rationale and if such an arrangement could result in a monopolistic environment in the telecommunication sector.
Private network operators have been reluctant to sign on with DNB due to disagreement on contract details, according to a report by Reuters, none of the operators have taken up the deal due to transparency and pricing issues. The news agency also stated that similar state-led approaches have been tested in other parts including Mexico which has largely failed.
Could the latest attempt by DNB with TM see as a push for other telecommunication operators to jump in? According to a report by EY the adoption of 5G could generate RM122billion to the GDP by 2030, while the nation needs to get this off the ground, the business potential for operators is also substantial. Industries and corporations are eager to embark on their digital journey and are already planning their investment strategy with 5G, with this said no network operator can afford to stall the progress.
However, these companies have shareholding and foreign investors, any unjustifiable agreements will not be accepted, as they say, the devil is in the details, until the kinks are ironed out we will have to just wait for a bit more longer to experience true 5G in our devices.
TM is a Government Linked Corporation, hence it’s a given that the operator will have to be part of the initiative, however, it’s also the telco with the least mobile subscriber base in the country. If DNB is to get any leverage in its plans, is to get any of the big three Maxis, Celcom, and Digi who make up 95% of total population coverage to budge.
