Malaysia’s 5G network fees will cost telcos much less, says finance minister

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KUALA LUMPUR, Nov 25 (Reuters) – Malaysian state company Digital Nasional Berhad (DNB) will cost telecom companies far much less for 5G network than the cost operators have incurred for 4G, the finance minister mentioned in parliament on Thursday.

DNB, an company below the finance ministry, is the only real licensee for 5G spectrum in Malaysia to construct and keep the whole network.

Malaysia’s main cellular carriers have raised considerations over transparency and pricing points, Reuters reported this month, and have but to agree to make use of the federal government’s 5G network forward of the rollout set to start subsequent month.

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Finance minister Zafrul Abdul Aziz mentioned every telco will pay to DNB 350 million to 400 million ringgit ($82.8-$94.6 million) a 12 months for 5G, in contrast with the 1 billion ringgit that telcos make investments as capital expenditure for 4G yearly.

The pricing is at present awaiting approval from the trade regulator which “will ensure that price set is fair and based on cost recovery, and not to make a profit”.

Telcos have mentioned below the proposed pricing plan, they may find yourself paying greater than they’d have in the event that they rolled out 5G on their very own, because the plan didn’t keep in mind extra necessities associated to points similar to visitors volumes and contingency prices.

“I believe the telecommunication companies will welcome the pricing when they are informed of it,” Zafrul mentioned.

Zafrul mentioned the federal government was conscious of the challenges of a single wholesale network, as skilled in different nations, including that steps have been taken to make sure the identical errors don’t occur in Malaysia.

($1 = 4.2280 ringgit)

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Reporting by Liz Lee; Editing by Jacqueline Wong

A man wearing a protective mask uses his phone as the Petronas Twin Towers are seen in the background in Kuala Lumpur, Malaysia April 12, 2021. REUTERS/Lim Huey Teng/File Photo