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Slow switch to dual 5G network could hit business confidence, says industry figure | Scoop
GSMA’s Asia Pacific head Julian Gorman speaking at an MCMC conference at the St Regis hotel in Kuala Lumpur today. – Riduan Rizal Ahmad/Scoop pic, May 7, 2024
News

Slow switch to dual 5G network could hit business confidence, says industry figure

This could impede technological development in Malaysia, says GSMA’s Julian Gorman

Main Author Image
Qistina Nadia Dzulqarnain
Updated
2:00 PM MYT

 

KUALA LUMPUR – Malaysia’s decision to have a dual wholesale network (DWN) for its 5G roll-out could impact confidence levels among consumers and businesses, impeding the country’s advancement in technological development.

According to the UK-based GSM Association’s (GSMA) Asia Pacific head Julian Gorman, the transition to DWN has created uncertainties and Malaysia needs to convey reliability in its 5G deployment.

“The amount of time being taken to move from a single wholesale network (SWN) to DWN is creating uncertainties and holding Malaysia back from potential innovation,” Gorman told reporters when met at the sidelines of the 2024 International Regulatory Conference here today.

“There is a reluctance (from industry players) to engage and invest in 5G until there is more certainty on its viability.

“As it is, enterprises can be slow to engage with technology, so while there is any sort of uncertainty (over 5G), it’s easy to sit back and wait (instead of immediately adopting 5G).”

Gorman also said since Malaysia had made known its expected trajectory for its 5G network, it was vital that authorities adhered to its projected deadlines and showed substantive progress.

“Once it is obvious that you’re making your way to your objectives, enterprises will have some comfort in not just the viability of the 5G network, but also their service providers’ abilities.”

He added that 5G would be a pivotal base requirement for advanced artificial intelligence technology, which was quickly gaining traction worldwide.

“The way we interact with the world around us will change in the coming decades, and it’s important the technology available to us is able to support such changes.”

In 2020, the government announced that 5G would be implemented through a special purpose vehicle, Digital Nasional Bhd (DNB), which was established to manage 5G deployment using the SWN model.

In May last year, Communications Minister Fahmi Fadzil said Putrajaya agreed to transition to a DWN system once DNB achieved 80% 5G coverage in populated areas.

Later in July, Fahmi said mobile network operators CelcomDigi, Maxis, Telekom Malaysia, U Mobile and YTL Communications would finalise negotiations on equity stakes in DNB, supporting the development of the country’s 5G network.

The five operators have since signed share subscription agreements to collectively take a 70% equity stake in DNB, whose new board members were announced by Digital Minister Gobind Singh Deo last month.

Gobind also assured that the government was moving closer to implementing a DWN for its 5G roll-out, with the board members urged to push the matter. – May 7, 2024

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