On 3 May 2023, the Malaysian Government announced that the country will move away from a Single Wholesale Network ("SWN") as the model for the implementation of its 5G infrastructure, to a Dual Wholesale Network ("DWN").
The Minister of Communications and Digital, Fahmi Fadzil, explained that this transition was necessary to avoid a single point of failure, and to increase capacity, taking into account the sustainability of the telecommunications industry ecosystem and the benefits that can be derived from a competitive landscape for 5G wholesale services.1
Under the DWN model, Digital Nasional Berhad ("DNB") would continue its implementation of the 5G network until it achieved 80% 5G coverage of the country's populated areas. This is targeted to be completed by end-2023. Once done, a separate entity would be selected via an open tender process to operate another 5G network in parallel with DNB.
This entity would then build its own 5G network from January 2024 and is expected to provide approximately the same level of coverage as DNB. The entity selection would be based on several criteria including the reasonable pricing of the wholesale price for 5G services.
On 9 May 2023, it was reported that the Malaysian Government would form a task force to ensure achievement of its goal of 80% 5G coverage by end 2023, and to facilitate a smooth transition from a SWN model to a DWN model in early 2024.2 This task force, under the purview of the Malaysian Communications and Multimedia Commission and co-chaired by the Secretaries-General of the Finance Ministry and the Communications and Digital Ministry, will include representatives from Malaysia's mobile network operators.
A key takeaway from these announcements is that the Malaysian Government will not be part of the new separate entity, nor will it have a stake in DNB.
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1 https://www.thestar.com.my/news/nation/2023/05/03/dnb-to-roll-out-5g-network-until-80-coverage
2 https://www.nst.com.my/news/nation/2023/05/907529/task-force-ensure-implementation-5g-smooth-transition-dual-network
