KUALA LUMPUR (Reuters) – Malaysia on Wednesday said it would move to a dual network model for its 5G rollout after coverage reaches 80%, a move that follows widespread concerns about pricing and competition.
For now, the rollout will continue under state agency Digital Nasional Berhad (DNB), Communications Minister Fahmi Fadzil said in a press conference.
“The government has agreed that a new entity can be established after we reach 80% coverage,” Fahmi said.
DNB has achieved 57.8% coverage of populated areas currently and is on track to hit 80% by the end of the year, he said.
Malaysia’s 5G rollout by DNB has been met with industry concerns over pricing and transparency, as well as worries that a single government-run network would result in a nationalised monopoly.
A recommendation by major carriers for a second 5G provider was rejected by the previous government in March last year.
The plan came under renewed scrutiny after Prime Minister Anwar Ibrahim, who took office in November, announced a review of the 5G plan, saying it was not formulated transparently by the previous administration. DNB denied that claim.
(Reporting by Mei Mei Chu and Rozanna Latiff; Editing by Martin Petty)
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