Due to transparency and pricing concerns, none of Malaysia’s major mobile carriers have consented to utilize the government’s 5G network ahead of a planned rollout next month, according to a state agency and industry officials. However, as talks with cell carriers continue, state-owned network wholesaler Digital Nasional Berhad (DNB) said it still hoped to deploy 5G services in three cities. In February, the Southeast Asian country, a regional laggard in 5G deployment, revealed a plan for a single shared network in the hopes of speeding up nationwide infrastructure development. Similar government-led techniques have been tried in other markets, such as Mexico, but have mainly failed.
In a country still reeling from a multibillion-dollar corruption scandal at state fund 1Malaysia Development Berhad, the lack of industry backing for the Malaysian plan highlights corporate concerns about government intervention and transparency (1MDB).
Due to political uncertainty, Malaysia has recently lost international investor trust, with the third administration in as many years taking office in August. The 1MDB crisis tarnished the country’s image and implicated a former prime leader. DNB revealed that no deal has been reached with carriers and admitted that their initial schedule for negotiations was “overly ambitious.”
DNB would own all 5G spectrum and build and manage the entire network as part of the plan, with operators leveraging the infrastructure to provide mobile services.
Axiata and DiGi did not respond to requests for comment.
Maxis said in a statement that it has been planning to launch 5G in the country for some time.
“We will continue to focus on our objective of serving Malaysia’s people and businesses, as well as playing a significant role in supporting the country’s digital ambitions,” it stated.
