DNB said its 5G network should reach 80% of the country’s population by the end of the year

Malaysia’s state-run 5G network operator Digital Nasional Bhd (DNB) will continue to roll out 5G network infrastructure in the country until 80% coverage is achieved by the end of this year, the country’s Communications and Digital Minister Fahmi Fadzil said.

The decision comes after the government announced it will enable the deployment of a second 5G network in 2024, amid concerns about pricing and competition with the current single state-run network.

“The shift to dual network will be done according to conditions which are in line with global standards, offering multiple networks for the people as well as industries that are target groups for the use of 5G,” the official said.

Fadzil said the shift to the dual network scheme will pave the way for the full participation of service providers, while allowing services to be provided at an affordable rate for end-users.

“In early 2024, we will shift to the dual network. DNB will continue to function, and service providers will become a part of DNB. This is in line with the initial talks of equity participation in DNB,” he said. Local operators Celcom Axiata, Digi Telecommunications, YTL Communications and Telekom Malaysia have currently own 70% of DNB and offer 5G through MVNO schemes. Maxis and U Mobile had declined to take up equity in DNB. U Mobile later signed an agreement to access DNB’s 5G network, while Maxis has said it will wait until the government review of DNB is fully completedtake a decision.

“The government had also decided that a new network can be established after we reach 80% coverage [with DNB],” he said, adding that the government is confident of achieving the 80% coverage target by the end of this year. DNB’s current 5G coverage is at 57.8%.

The official also said that the government will create a new entity to manage Malaysia’s second 5G network, adding that the authorities will seek to guarantee the interoperability of the two networks.

Last year, former Prime Minister Muhyiddin Yassin had unveiled an initiative for a state-owned vehicle to own all 5G spectrum, with various carriers using the network infrastructure to provide 5G services across Malaysia via wholesale or MVNO arrangements.

However, Malaysia’s 5G roll-out by DNB had raised concerns over pricing and transparency, as well as worries that a single state-run 5G network would result in a nationalized monopoly.

Due to these concerns, the new prime minister, Anwar Ibrahim, had announced that it was reviewing the rollout of the national 5G network due to the lack of transparency.