Tengku Zafrul continues to cooperate with KKMM Minister on 5G (Updated)

KUALA LUMPUR: The single 5G network or Single Wholesale Network (SWN) concept has been discussed between the Finance Ministry (MoF) and the Communications and Multimedia Ministry (KKMM) in Cabinet since 2019.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (pix) said the concept was proposed by the Malaysian Communications and Multimedia Commission (MCMC) in the Final Report on the Allocation of Spectrum Bands for Mobile Broadband Service in Malaysia published at that time.

He said the report proposed the formation of a single entity by a 5G consortium comprising telecommunication companies (telcos) compared with awarding the 5G spectrums individually.

However, due to the difference in interests among the telcos, the effort to share networks, save costs and launch 5G did not materialise as hoped.

“All this time, MoF has been in close cooperation with KKMM and its agency SKMM in every effort to enhance the digital connectivity in Malaysia.

“I have always discussed with the KKMM minister, past and present, and I will continue to work closely with the KKMM minister to ensure that the country’s digital economy thrives,” he said in his latest social media post.

Tengku Zafrul was clarifying a statement by Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin in the Dewan Rakyat yesterday that there was no consultation with KKMM on the appointment of Digital Nasional Bhd (DNB) to undertake the deployment of the 5G network and infrastructrure via the SWN model.

He claimed that KKMM was also aware that a special purpose vehicle wholly owned by the government would be appointed to implement a single 5G network infrastructure nationwide.

On March 1, 2021, MoF announced the formation of DNB to manage the 5G SWN based on the cost recovery model rather than a profit maximisation model.

“The cost recovery model took priority so the 5G network implementation could be accelerated at a low cost. It will ensure reasonable 5G usage cost for the people and businesses.

“The supply-driven model is also important to ensure 5G services can be enjoyed by those living in rural areas,” he explained.

On the 5G network design and build managed by Ericsson, he said as part of the effort to accelerate the 5G implementation, the tower rental and fibre leasing were combined.

“Hence, the issue on DNB’s capacity to provide a digital backbone never arose as the 5G network development would also leverage existing infrastructure,” he said.

Tengku Zafrul also explained that based on tender evaluation, Ericsson (Malaysia) Sdn Bhd had been appointed as the network equipment provider as it offered a cost that was RM700 million lower compared to the second lowest bidder.

He said the tender process was implemented transparently and collectively through consultation with telcos, including in the network design aspect.

According to him, the interest of Bumiputera contractors is safeguarded.

He pointed out that one of the 5G project’s conditions was it must benefit at least 60 per cent of Bumiputera contractors in the next 10 years, as agreed by the Bumiputera Prosperity Council.

Tengku Zafrul expressed hope for an end to any confusion on the adoption of the SWN model, given its clear benefits and win-win solution for all quarters.

“In my humble opinion, KKMM has done a great job in implementing the nation’s connectivity project, Jendela, and MoF will always support KKMM’s objective to realise the nation’s MyDIGITAL mandate for socio-economic inclusivity.

“Most importantly, the government will continue to ensure inclusiveness in the 5G network coverage, a quick implementation and affordable 5G prices for the entire Malaysian Family, whether individuals or businesses,” he added.

-Bernama