DIGITAL Minister Gobind Singh Deo has addressed concerns about Digital Nasional Bhd (DNB) potentially becoming obsolete with the implementation of Malaysia’s dual 5G network model.
Gobind highlighted DNB’s impressive progress, noting that the company has achieved 82% 5G network coverage of populated areas within three years and now serves 14.8 million subscribers.
“Overall, what has been implemented by DNB so far is good, and I don’t think there is any issue of DNB failing or becoming a white elephant in the future,” Sinar Harian quoted him as saying.
However, Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal raised concerns on Monday (July 20) that DNB might require a government bailout when the dual 5G network model is introduced.
Wan Fayhsal criticised the government for not being transparent about how DNB will be managed after the establishment of the second network.
In 2021, Malaysia introduced a plan where the state-owned DNB would control the entire 5G spectrum, allowing various carriers to utilise the infrastructure for mobile services.
Following criticisms that this monopoly could hinder competition, the government agreed to allow the creation of a second network by telecommunication companies once DNB reached 80% coverage.
Moreover, the government plans to sell 70% of its stake in DNB to mobile network operators.
Critics caution that the establishment of a second network might lead to increased costs, taxpayer-funded debts and potential conflicts of interest. – Aug 1, 2024
