The long-running saga that is Malaysia’s single 5G network plan has taken yet another twist it seems, with a report now saying that four of the country’s mobile operators are openly calling for a second 5G provider to be established.

According to Reuters, the government will decide by January whether or not to continue with its plan for a SWN, or single wholesale 5G network. It has previously been reported that operators are reluctant to go along with the SWN plan over competition concerns.

Reuters said last month that none of the incumbent operators has been willing to accept the wholesale price terms.

Figure 1: Flagging it: Reports indicate that Telekom Malaysia and YTL Communications are first to provide 5G access in three cities covered by the SWN.
(Source: mkjr_ on Unsplash)

Digital Nasional Berhad (DNB), the government-owned entity created to manage the project, said operators would receive the formal reference access offer (RAO) that contains the pricing details in December.

The news agency, citing unidentified sources, said representatives from the country's six mobile operators met with ministry officials on Monday to propose solutions to the deadlock and their ideas for deploying 5G. Apparently, Axiata Group's Celcom, DiGi.com, Maxis and U Mobile recommended the government allow two wholesale 5G networks, each to be built and operated by a consortium of operators.

In a presentation seen by Reuters, the operators proposed the consortia start the two networks in parallel in 2022 and separate them from 2023, "giving Malaysia fast initial deployment and then the security of dual competing networks going forward.”

The operators also indicated they would consider owning equity in DNB, and asked for greater inclusion in the government's rollout plans.

YTL Communications is said to remain supportive of a single 5G network, while Telekom Malaysia would just do what the government tells it to do.

Meanwhile, 5G arrives in three cities

The latest developments emerged as the latter two operators actually launched the first 5G services under an agreement with DNB.

According to TechWire Asia, Telekom Malaysia Bhd and YTL Communications are now beginning to offer 5G services to their customers in Kuala Lumpur, Putrajaya and Cyberjaya.

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The newswire noted that the two operators are taking advantage of DNB’s offer of free wholesale 5G services until the end of March 2021. According to both providers, end-users with 5G-compatible devices will receive average speeds of 100 Mbit/s.

The TechWire Asia report said DNB’s COO Ahmad Taufek Omar told reporters after the launch on Wednesday that DNB is seeking to finalize its wholesale agreements with operators during the initial 5G rollout period until March, and hopes to sign long-term contracts with them at the same time.

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— Anne Morris, contributing editor, special to Light Reading