PETALING JAYA: The rationale for using the single wholesale model for the 5G spectrum and related infrastructure ensures consumers do not end up paying more for the service, communications and multimedia minister Annuar Musa told the Dewan Rakyat today.
He said this in reply to Fahmi Fadzil (PH-Lembah Pantai) who wanted to know how much was the opportunity cost for the government in using the wholesale model as compared with using the option to auction off the 5G spectrum to telecommunications companies for the transition from 4G to 5G, Bernama reported.
“The opportunity cost for the government is a non-issue as the 5G rollout is not using any government funds because it is arranged by the private sector.
“The wholesale concept, however, helps avoid high prices for the consumers,” he said.
Annuar then explained that if the acquisition of the 5G spectrum was carried out via auction, consumers could end up paying more to the mobile operators which won by placing higher bids.
“It would affect consumers because the higher the auction price, the more expensive the 5G network charges would end up being for them,” he was quoted as saying by the national news agency.
Annuar added that this would contravene the government’s objective in ensuring that the price for 5G will not be higher than the price of 4G.
The Dewan Rakyat was also told that the price for the 5G network offered to telcos was not set by Digital Nasional Bhd (DNB).
According to Annuar, the setting of the price is done in consultation with the Malaysian Communications and Multimedia Commission (MCMC) using a Reference Access Offer (RAO) for 5G wholesale services.
“RAO negotiation is still ongoing and only after the RAO pricing is set, can the 5G rollout be inked with MCMC’s approval.
“So far, MCMC has yet to give any approval for the price,” he said, referring to the RAO which is the basis for DNB to enter into commercial agreements with telcos.
Annuar added that Malaysia is also the first country in the world to introduce the Multi-Operator Core Network (MOCN) system in the 5G rollout.
“In most countries, the MOCN is being used by a maximum of two or three operators, but in Malaysia, it can be used by five or six operators.
“This was demonstrated to me by DNB as an example of how the cost can be reduced when MOCN integration is done when the 5G rollout is launched,” he said.