GSMA released a new report “Safeguarding the road to 5G Malaysia” and shared some measures to help the success of Malaysia’s Digital Nasional Berhad (DNB), Single Wholesale Network (SWN) providing 5G services.
These include three mitigation measures:
Clarify DNB’s tasks and regularly monitor its performance according to its strategic objectives: clarify DNB’s strategic objectives and specific roles and responsibilities. It is preferable to conduct an authorized commercial and regulatory review of DNB to enable it to reform and change the elements of its governance structure. This review can be conducted by the Malaysian Communications and Multimedia Commission (MCMC) every two to three years.
When DNB starts commercial operation, the appropriate regulatory system shall be introduced: This is the key to ensuring the fair competition environment of all operators in the retail market. It is important to clarify DNB’s regulatory obligations in providing access, new product development, wholesale access prices, service quality and network flexibility. If the regulatory framework is delayed, DNB shall conduct commercial negotiations on its access price during the transition period. Prices must be transparent to the entire industry to minimize competition distortions.
Maintain flexibility and provide alternative delivery options for 5G networks and services in Malaysia: there are delays and other unforeseen development risks in any large infrastructure project. It is necessary for the government to consider options for network delivery. These options include allowing existing MNOS to use their existing spectrum to provide 5G services, deploying 5G networks in specific regions / economic sectors, and signing a co-investment agreement with DNB.
Other main conclusions include:
By entrusting the 5G network deployment to DNB, the state-owned monopoly will replace the highly competitive wholesale market.
Monopolizing the exclusive right to provide 5G wholesale services will harm consumers and enterprises and the digitization of Malaysia’s economy.