Is two better than one? A 5G dual wholesale network may be in the works

In the latest reported development of the 5G rollout in Malaysia1, the government seems to be leaning towards the implementation of a 5G Dual Wholesale Network (‘DWN’) model although the mobile network operators (‘MNOs’) would be first offered the option to take direct equity in Digital Nasional Berhad (‘DNB’).
 
Currently, 5G is being deployed via a Single Wholesale Network (‘SWN’) model operated by DNB, a government-owned special-purpose vehicle (SPV). Under the SWN model, MNOs would gain 5G access solely from DNB on a wholesale basis. Some major telco providers have not accepted this model and have proposed that a DWN model be established instead. Based on the news report, the second provider will build its own infrastructure without the government’s involvement. Meanwhile, the Ministry of Finance (‘MOF’) will continue to hold a certain percentage of equity in DNB.
 
The Ministry of Communications and Multimedia and MOF have completed a series of engagements with various parties concerning the 5G rollout and the Cabinet is expected to make a final decision on 11 March 2022 on whether to continue with the current 5G rollout plan or adopt the DWN model instead. Thus, it appears that the question of SWN vs DWN will be resolved soon and may mark a significant development of 5G in Malaysia.
 
In the meantime, DNB has affirmed that it aims to ramp up 5G coverage this year to achieve its targeted cover 37.9% of populated areas by the end of 2022.
 
Alert by Natalie Lim (Partner) and Nicole Oh Jia Yi (Associate) of the Technology, Media and Telecommunications Practice of Skrine. 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.