DNB’s 5G development will focus on public benefit

There is a possibility private telecommunications companies may ignore low-density residential areas or areas where they lack customers in the 5G rollout.

It is natural for telcos to focus their 5G investments on locations that can serve the majority of their customers better, seeing that they are profit-driven and must answer to their shareholders.

DNB is a special purpose government vehicle focusing more on public benefit when it comes to 5G development. Telcos have their own private interests because as listed companies, Axiata and Maxis, for example, must comply with what their shareholders want.

If we give Telco the 5G development, they won’t give this facility to areas where they don’t have a lot of clients.

DNB to charge less than 20 sen for each GB 5G service to telcos

Digital Nasional Bhd (DNB) will charge less than 20 sen per gigabyte (GB) for 5G service to telecommunication companies (telcos).

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.

Consumers biggest winners of swift 5G roll-out

Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz had previously assured that telcos would pay less than RM0.20 per gigabyte (GB) for 5G connections.

Currently, the average revenue per use, based on published accounts of the telcos, averages between RM43 and RM47 per month, with consumption of data per user ranging between 22GB and 25GB per month for 4G connections.

On average, customers are charged approximately RM2/GB, while the costs for telcos to produce 4G speeds range between RM1.50 and RM1.70.

Cheaper for Telco to pay DNB than build its own infrastructure

Telecommunications giant Celcom is projected to spend RM15.1 billion in the next 10 years to invest in its own 5G infrastructure compared to only RM8.1 billion if it were to pay for 5G access to Digital Nasional Berhad (DNB).

This would mean that Celcom will have to invest an additional RM 16.9 billion to densify 4G coverage as the consumption would shoot up to 150GB per person per month. For similar capacity but much better speed (due to 5G), Celcom will be paying only RM8.1 billion to DNB over the next 10 years.

Building its own 5G network would cost Celcom RM15.1 billion primarily because they may not spend as much incrementally and can leverage on their existing infrastructure.

It was cheaper for Celcom to pay DNB RM8.1 billion than if it were to build its own 5G infrastructure, suggesting that the telco could use the RM7 billion saved to deliver better dividends to shareholders and pay off its debts.

The earlier Malaysia achieves nationwide 5G coverage, the sooner it can reap substantial economic gains

Connectivity is the core of future productivity, and Malaysians are ready to be a part of the move towards global digitisation. Today, we are at the cusp of a 5G revolution which will lead us to a future of digitally-powered efficiency and competitiveness with the nationwide availability of high-speed internet.

Designed for speeds up to 100 times faster than 4G, with greater capacity and near-zero latency, 5G will unlock innovation in the digital economy, as well as various solutions for social inclusivity.

The earlier Malaysia achieves nationwide 5G coverage, the sooner it can reap substantial economic gains. Findings from a recent EY study on 5G’s potential economic impact show a cumulative GDP uplift of RM650 billion over the next 10 years, with RM150 billion in 2031 alone. It is estimated that there would be some 750,000 new high-skilled jobs created by 2030, putting us at an advantage over neighbouring countries.

DNB Will Accelerate The National Fifth Generation (5G) Network Deployment

Digital Nasional Bhd (DNB) has reaffirmed that a single wholesale network (SWN) mechanism will accelerate the national fifth generation (5G) network deployment and move up Malaysia’s position in offering commercial 5G services in ASEAN.

Chief corporate affairs officer Zuraida Jamaluddin said Malaysia is currently ranked sixth for 5G commercial services offering, lagging behind Singapore, the Philippines, Thailand, Vietnam, and Indonesia.

“(SWN) will minimise the complexity and we become the single interoperable platform for 5G network rollout in Malaysia.

“We have planned for commercial launch by this month and to move up the rank to second place in 2024, with an aggressive timeline to achieve 80 per cent coverage by 2024, with full-fledged 5G capabilities,” she told a media briefing today.

DNB also aims to reach 80 per cent of the populated areas of the country by 2024 with 7,509 sites.

National Security

The other reason is one of control, and geopolitics. National telecommunication networks are intensely political, and the role of foreign ownership and foreign technology can be very controversial. With DNB building and operating the network, and retaining control over the 5G spectrum, the government ensures that this critical national asset remains under tight supervision.