According to industry analysts, Malaysia’s telecom business would benefit from a second 5G network

According to some industry observers, a second 5G network will benefit the telecommunications (telco) industry by lowering access fees, improving earnings, and allowing telcos to free up cash flow.

They agreed that the government should introduce another network and eliminate the Single Wholesale Network (SWN) model for the rollout of 5G, saying that what’s good for telcos is good for customers.

New 5G Network

Reuters reported on Monday that Malaysia might introduce a second 5G network in 2024. The nation’s 5G coverage must reach 80% of the population by the end of 2023 for the second network rollout to take place.

Due to its monopolistic nature, there are concerns that Digital Nasional Bhd (DNB)’s SWN model could result in excessive pricing and, to a certain extent, a lack of transparency.

Datuk Seri Dr. Irmohizam Ibrahim, managing director of the group at World Trade Centre Kuala Lumpur, stated that the SWN model claimed to deploy 5G faster and at lower costs through a supply-driven model.

However, Malaysia’s 5G adoption rate is currently among the region’s lowest. It is also common knowledge that there is still a lack of indoor coverage and that the majority of 5G deployments currently take place in urban areas,” he told the New Straits Times today.

Malaysia College of Science and Innovation financial specialist Dr. Geoffrey Williams said a subsequent organization would increment rivalry and be better for customers.

This is due to the fact that telcos will compete with one another in terms of price, quality, and service options. Additionally, as more 5G services and products become available, they will be introduced sooner rather than waiting for the government monopoly to catch up.

He stated, “So what is good for telcos is also good for consumers and aids the industry as a whole in becoming more sustainable, innovative, and competitive.”

According to Williams, allowing a second 5G network is in line with Prime Minister Datuk Seri Anwar Ibrahim’s policy of allowing market competition and breaking up monopolies.