The government’s transition from a single wholesale network (SWN) to a dual wholesale network (DWN) for the rollout of 5G connections in the country will give telecommunications companies the freedom to meet the specific needs of their customers, especially in providing enterprise solutions.
Minister of Communications and Digital Fahmi Fadzil said with control over their own infrastructure, telecommunications companies will be able to launch suitable enterprise solutions for customers of mobile network operators, who come from various sectors.
“This (change to dual network) is more of a business consideration because some telcos may look at refineries or offshore platforms or oil and gas (sectors), while some may look at certain retail businesses or certain types of factories. Different enterprise solutions may require different types of equipment. This means telecommunication companies can make their own decisions on whatever they feel is necessary (to meet the needs of their customers),” he said during a media briefing on the country’s 5G direction at the ministry’s headquarters recently.
On May 3, Fahmi announced the transition to DWN for ultra-fast 5G connectivity in the country, following a comprehensive Cabinet discussion on the matter as well as consultation with industry players.
However, he said, the implementation of the launch will continue under the government’s special purpose vehicle, Digital Nasional Bhd (DNB) until 5G reaches 80 percent coverage of populated areas (CoPA) by the end of 2023.
In principle, the transition from SWN to DWN means that there will be entity A, which will continue to operate and expand the DNB network, as well as entity B, which will be owned and operated independently by the telecommunications company.
Fahmi said the government also decided to form a special task force that would hold meetings every two weeks, and report to him on the status and progress of the 5G rollout, as well as the transition from SWN to DWN.
The focus of the task force is the implementation of 5G networks, to ensure accelerated coverage and rollout to reach the CoPA target of 80 percent by the end of the year.
He added that the task force will be co-chaired by Chief Secretary of the Treasury Datuk Johan Mahmood Merican and Chief Secretary of the Ministry of Communications and Digital, Datuk Mohamad Fauzi Md Isa with the Malaysian Communications and Multimedia Commission (SKMM) as the secretariat.
“They will report to me and I will present (their findings) to the Cabinet,” he said, adding, the second entity will not only focus on the remaining 20 percent of CoPA, although entity A under DNB will reach 80 percent by the end of this year.
The Lembah Pantai MP said, when entity A reaches 80%, entity B will build its own infrastructure up to 80% of CoPA and beyond.
“This means we will have two networks that will have approximately the same amount of coverage. For example, the coverage of 4G towers throughout Malaysia has exceeded 96 percent, but not all telecommunications companies have reached the same figure. For the purpose of 5G rollout, the most important part is that entity B will build its own separate network,” he said.
However, Fahmi added, telecommunication users under entity B will still receive 5G connections while it is building its infrastructure because the telecommunications company involved will use entity A’s 5G connection.
“This is made possible through the core network of multiple operators.”
Fahmi said that the MCMC informed that, as of April 30, the implementation of 5G throughout the country had reached 59.5 percent CoPA, a big increase from the 57.8 percent announced at the end of March this year.
He added that of the total of 7,509 towers required for 5G connection across the country, 4,827 had already been built by the end of April.
Explaining the government’s position on DNB, Fahmi said the desire to liquidate 70% of the government’s shareholding will proceed as planned. And, before the dissolution of Parliament last year, four MNOs were ready to participate in DNB and they went through the process.
However, he said, several conditions have not been met, resulting in the entire share agreement not being completed.
“Effectively, we have not changed much of DNB’s operating model at all. So those who think we (the government) canceled the contract (are incorrect), because we didn’t. Regarding the government’s ownership of DNB, the intention to liquidate the 70 percent shareholding is still the same as before. Whether the time will come when the government will completely withdraw from DNB is a decision we will have to make at a later date. It’s not something we’re talking about right now.
“At the moment, it is about taking equity for MNOs. The main concern is to ensure that DNB continues with the rollout of the 5G network so that we reach 80 percent CoPA.”
