Companies including Telekom Malaysia Bhd and Huawei Technologies Co are expected to play a significant role once the work begins “as soon as possible” to have the network available by end-2021, communications and multimedia minister Saifuddin Abdullah said in a group interview today.
“We want to be among the first Asean member states to roll out 5G deployment and not just limit ourselves to 5G test labs,” Saifuddin said. “It is very important for investment, and this is where companies like Huawei will play a very, very significant role.”
The government’s decision to build the network itself was made for a simple reason that it would be faster, he said. This was after the government considered the options including issuing tenders and asking the main carriers to form a consortium, he added.
Prime Minister Muhyiddin Yassin last Friday announced that Malaysia would invest RM15 billion over 10 years in the 5G network. The government will set up a special purpose vehicle that will own the spectrum and manage the network, he said.
Malaysia is backing Huawei for its 5G development, something that has proved controversial in other nations after the previous US administration of President Donald Trump barred the telecom giant from 5G, citing the risk of state-sponsored spying – allegations the company has repeatedly denied.
Under the previous government, Malaysia said it would forgo revenue from spectrum auctions and instead allocate airwaves to a consortium of carriers that would be chosen via a tender process.
But in June last year, Saifuddin revoked an order to divvy up 5G airwaves among several carriers including Telekom Malaysia, citing transparency as well as technical and legal issues. (Bloomberg)
Govt-owned company to own 5G infrastructure
The provision of 5G infrastructure in the country will be led by a government-owned entity or Government of Malaysia Special Purpose Vehicle regulated by the Malaysian Communications and Multimedia Commission.
In a statement today, Saifuddin said the provision and management of 5G infrastructure by the special vehicle would enable the distribution of 5G capacity to telecommunications companies in a fair and transparent manner.
He said the model would also allow savings on capital expenditure and avoid infrastructure duplication. “The effect of the savings and organised implementation will be enjoyed by consumers in the form of more affordable 5G services,” he said.
According to him, the infrastructure sharing model will enable telecommunications companies to provide wider 5G coverage at competitive cost and accelerate the use of 5G in the country.
In addition, the telecommunications companies could focus on efforts to expand their optical fibre network and strengthen 4G coverage especially in rural areas. (Bernama)