A RETURN TO TRADITIONAL MODEL LIKELY?
Govt to make final decision next month as telcos call for more transparency
IT will be a “positive surprise” if Digital Nasional Bhd (DNB) were to change the single wholesale 5G network (SWN) model to the traditional model, said analysts.
They said the potential reversion to multiple systems would provide more transparency and hand network control back to the telecommunications companies (telcos).
The government is reportedly reconsidering the SWN model after receiving feedback from telcos and industry players.
Communications and Multimedia Minister Tan Sri Annuar Musa said on Tuesday the telcos had continued to question the proposed 5G rollout model.
He was quoted as saying that the cabinet would make the final decision on the SWN model next month.
“After receiving a second opinion and feedback from industry players, the cabinet is reconsidering the single wholesale model under DNB.”
He said as for now, DNB would continue with its plan of delivering 5G services via the SWN model.
DNB was established by the government in February to build
and manage the national 5G network. However, it had met with resistance from major mobile network operators (MNOs) as none has signed up, citing transparency and pricing issues.
Kenanga Investment Bank Bhd analyst Jim Lim Khai Xhiang said it was surprised by the news but welcomed the potential reversion to the traditional model.
He said the traditional model could hand the network control
back to the telcos and allow them to provide the crucial differentiation in the consumer and enterprise segments.
“While seemingly fuelling greater uncertainty, these developments signal continued progress in negotiations and DNB’s openness to the carriers’ feedback.
“The government’s prompt decision on this will provide certainty to the telcos’ future operating
environment. We turn more optimistic on the MNOs’ prospects,” said Lim.
Rakuten Trade Sdn Bhd head of equity sales Vincent Lau said the potential reversion showed that the government was taking seriously the MNOs’ feedback.
“This will give better visibility in terms of cost to operators and provide more transparency in the development of the project moving forward.”