As Malaysia ramps up adoption of its fifth-generation cellular network, or 5G, experts told CNA the country can learn from the experiences of other advanced economies that have rolled out 5G.
It should be affordable for enterprises to sign up for the superfast network, and all parties from mobile network operators to vendors must collaborate to make it a success, the experts said.
Industry adoption of 5G remains slow despite about a third of Malaysia’s population – almost 12 million users – having signed up for it as of March.
The 5G network has achieved a coverage of slightly over 80 per cent in populated areas, while the government is planning a second such network that will be ready in two years.
Malaysia aims to transform 3,000 factories into smart factories by 2030 by speeding up 5G adoption in the country.
However, CNA reported last month that the roll-out hit a snag in early December, after a complex government-sponsored settlement agreement broke down. The agreement was between state-owned 5G operator, Digital Nasional Bhd (DNB), and the country’s five private mobile telecommunications companies.
At the time, industry executives noted that the uncertainty surrounding the roll-out was likely to sideline potential investors interested in leveraging on the benefits of a superfast wireless network.
DNB has entered into a share subscription agreement with the five telcos, with each taking a 14 per cent stake and the remaining 30 per cent held by DNB. The DNB board was reconstituted on April 25 with all the telcos represented.
Workshops And Forums
To raise awareness of 5G among industry players, workshops and forums have been organised – including a recent one in the country’s technological hub in Penang in late April.
The workshop aimed to connect industries with vendors showcasing various 5G applications that can enhance operational productivity and efficiency.
Sherman Chew, marketing director of tech giant ZTE Malaysia Corporation, said the company’s objective was to bring industry players closer to “briefly understand in-depth and visualise 5G applications”.
One example of how 5G can be applied, said Chew, was an auto-guided vehicle that can carry up to a tonne of goods.
Last year, ZTE entered a partnership with Telekom Malaysia to build a hybrid cloud 5G core network.
An auto-guided vehicle that can carry up to a tonne of goods.
Malaysia is urging the manufacturing sector to quickly adopt 5G and cutting-edge technologies such as industrial robots and automation in its operations to remain relevant and competitive. However, it needs reliable, secure and fast 5G infrastructure to enable digital transformation.
Chew said that industry adoption is “not a one-player show”.
“It definitely needs to be collaborated with mobile network operators, with industry players, the system integrator, the vendors, etc. All have to come together to realise this goal,” he added.
During another industry workshop held in Kuala Lumpur on May 3, Malaysia’s Digital Minister Gobind Singh Deo said implementation is key when it comes to 5G.
“We have technology – if adopted, (it) can transform the system and increase profitability. We have a network that’s efficient. The question now is whether there’s enough enterprise solutions and there’s enough adoption,” he said.
Lower the entry point, says expert
To speed up 5G adoption, industry experts said Malaysia can look at how 5G roll-outs worked out in other advanced economies such as China.
David Morrison, director of Huawei Technologies’ chief transformation office, said the entry point should be lowered to get people to buy into the network.
“Don’t charge CapEx (capital expenditures) which SMEs (small- and medium-sized enterprises) can’t afford,” he added.
“Charge OpEx (operating expenses) which they can afford. They get locked in for a period to ensure there’s a pay back. Once they start doing that, then it will explode like it has in China, South Korea and Japan everywhere else.”
Ericsson Malaysia president and CEO David Hagerbro said it remains important to use investments in a wise fashion.
“For sure, the digital highways are there, but the real value of these highways will only be realised when you use these highways,” he added. – CNA
