The move to expand the coverage of the 5G network announced by the government in the 2023 Budget is able to further lower the Internet prices offered. Deputy Minister of Communications and Digital Teo Nie Ching said this is because Digital Nasional Berhad (DNB)has offered 5G services for RM0.13 sen per gigabit, through a referral access offer.
According to her, the price offered is lower than the current cost of 5G services which is RM1.68 sen per gigabyte. “So we really believe that with the of expanding the 5G network coverage, our Internet prices can be lowered again,” she said. Teo said that currently, the implementation level of 5G services is 54.7 percent and the Ministry is confident of reaching the target of 80 percent coverage for populated areas such as Cameron Highlands and Sibu by the end of this year.
She said the government will also ensure that the cost of implementing 5G services will remain at RM16.5 billion to enable users to enjoy the Internet at a reasonable price. He added discussions on this have been initiated so that telco companies also have share distribution in DNB. “But so far the agreement (discussion) has not been finalized yet and indeed we and the telco company are negotiating because they have some questions if they acquire DNB shares, what are their rights as shareholders? So there are details that need to be refined before the telco company makes a final decision,” she said.
On whether the price of 5G and quality can be reduced over time to the lowest in ASEAN, Teo said the prices offered by service providers are determined by market forces. According to her, if the market fails to function efficiently, then the Malaysian Communications and Multimedia Commission can intervene in setting prices.”Nevertheless, MCMC regulates access prices at the wholesale level through the legal instrument of the Commission’s Determination of Mandatory Standard on Access Pricing with permission, Mandatory Standard on Access Pricing (MSAP), and studies on this access price are done periodically. “Through regulation at the wholesale level, it can indirectly reduce prices at the retail level, to consumers to a more competitive level,” she said.
She added that 5G services have just been offered in Malaysia and for now, service providers are adopting a neutral technology concept in pricing with no difference between 5G and 4G services.
