The new “Entity B” under Phase 2 of Malaysia’s 5G rollout, is to not have its wholesale price exceed those presented by Digital Nasional Bhd (DNB).
The entity would be begin when the nation is to shift to a dual wholesale network (DWN) model after 80% coverage of populated areas (CoPA) is achieved.
Communications and Digital Ministry (KKD) Deputy Minister Teo Nie Ching told Dewan Rakyat on Monday (May 22) that one of the conditions determined by the Cabinet is that the tariff price offered by Entity B for the second network cannot exceed that of the current tariff [under DNB].”
Teo noted that DNB’s current wholesale price offered to telecommunication companies (telcos) is RM30,000 per Gbps (gigabit per second) a month — or 13 sen per GB (gigabyte).
“The condition we will set for the second entity is that [their wholesale] price can be lower than the current price or the same, but cannot be higher. That is why we believe that the second network will create competition between the two entities, and because of that, consumers will be able to benefit,” Teo said.
Teo also noted that the move to shift to a DWN model was well received by mobile network operators (MNOs).
Earlier this month, after a nearly five-month review of the 5G rollout, the unity government announced a slated shift to a DWN model from the current single wholesale network (SWN) model when 80% coverage of populated areas (CoPA) is achieved by end-2023.
Following the decision, former DNB equity holders CelcomDigi Bhd and Telekom Malaysia Bhd (TM) terminated their respective share subscription agreements (SSAs) with DNB. CelcomDigi and TM, along with YTL Communications Sdn Bhd, inked SSAs with DNB last year to take up a cumulative 65% stake in DNB, while Maxis Bhd and U Mobile Sdn Bhd opted out.
