Sunday, February 5, 2023

Digital Nasional (DNB) not allowed to engage in 5G Retail Activities – KKMM

Digital Nasional Bhd (DNB), the exclusive 5G network provider in Malaysia is not allowed to engage in retail activities, according to the Communications and Multimedia Ministry (KKMM).


In response to a question in Dewan Rakyat, Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said that Digital Nasional Bhd (DNB) is strictly regulated by the Malaysian Communications and Multimedia Commission (MCMC).

The Deputy Minister reveals that MCMC had impose conditions that prohibit Digital Nasional Bhd (DNB) from engaging in retail activities. To ensure that the cost of 5G wholesale services offered by DNB is at a reasonable level, MCMC has set some conditions in the 5G license regarding DNB’s responsibilities regarding access costs.

In addition, he added that the Communications and Multimedia Act 1998 empowers MCMC to set mandatory wholesale prices through the Mandatory Standard on Access Pricing, if this approach is required to ensure affordable prices for 5G to consumers, in the future.

Part of his response in Bahasa Malaysia as below:

[box type=”info” align=”aligncenter” ]4. Pengoperasian DNB selaku pengendali perkhidmatan borong tunggal 5G dikawal selia ketat oleh pihak Suruhanjaya Komunikasi dan Multimedia Malaysia (SKMM). Antara lain, pihak SKMM mengenakan syarat yang melarang DNB daripada terlibat dalam aktiviti runcit. Bagi memastikan kos perkhidmatan borong yang ditawarkan oleh DNB berada pada tahap yang munasabah, SKMM telah turut menetapkan beberapa syarat dalam lesen berhubung tanggungjawab DNB berkaitan kos capaian.

5. Selain itu, Akta Komunikasi dan Multimedia 1998 turut memberi kuasa kepada SKMM untuk menetapkan harga borong secara mandatori melalui Mandatory Standard on Access Pricing, sekiranya campur tangan SKMM melalui pendekatan ini diperlukan bagi memastikan harga perkhidmatan yang berpatutan dapat diberikan kepada pengguna untuk perkhidmatan 5G kelak.

[PDF] – Full Transcript


Digital Nasional Bhd (DNB) is expected to launch its 5G network in Malaysia, in December 2021, targeting 500 5G sites in Putrajaya, Cyberjaya and Kuala Lumpur. The Government-owned company will exclusively own, build and operate the 5G infrastructure and offer 5G as a wholesale network service to other Telecommunication companies such as Maxis, Celcom, Digi, U Mobile, Telekom Malaysia (TM) and others.

It pledged to deliver 100Mbps speeds at cell edge and claims it can face a penalty if it fails to deliver the 100Mbps speed.

The cost of this 5G deployment is expected to be RM16.5bil, although it may go over RM20bil between 2021 and 2030. Some RM4bil alone is set aside for corporate costs including startup costs, consultant fees as well as RM2.5bil for staff compensation for over 600 workers.

Kugan is the co-founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy

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