“In comparison, this is much cheaper than the current incremental cost per GB of 4G service produced by telcos at a rate of between 45 and 55 sen per GB,” he said during a question-and-answer session at the Dewan Rakyat today.

As the regulator, the Malaysian Communications and Multimedia Commission (MCMC) will ensure that the prices are fair and based on cost recovery, and not to generate profits, he said.

“I have been informed that the 5G pricing process is almost complete, and it is different and much lower than the cost per GB of 4G service by telcos,” Tengku Zafrul said, adding that he believed that telcos would welcome the pricing when informed later.

He said DNB will also implement a 5G network through the single wholesale network (SWN) model for this purpose.

“The government is aware of the issues and challenges of SWN telecommunications in other countries, and has taken steps to ensure that the same mistakes do not happen in Malaysia,” he said.

Through this model, each telco is expected to pay DNB between RM3.5 billion and RM4.0 billion over the next 10 years, or about an average of RM350 to RM400 million a year.

This is much lower than the RM1 billion capital expenditure for 4G invested by telcos each year.

“This means they will get savings of more than 50%. Those savings can reduce the price of services charged to consumers and at the same time, also pay more dividends to their respective shareholders,” he said.