This article appeared in The Edge Markets on 16 February 2022.

KUALA LUMPUR (Feb 16): Using a dual wholesale network (DWN) model to implement 5G will create confusion in the market, according to adviser to the United Nation (UN) on 5G strategy and policy Brett Hann.

Speaking at a media briefing on Wednesday (Feb 16), Haan said the DWN model will raise a lot of questions that will pose further challenges in implementing the 5G technology.

“The DWN model, to me personally raises questions such as — are these entities friends or competitors?

“Are they going to go to the same capital markets for financing? Are they going to the same vendors?

“How are you going to handle cybersecurity which is critical? How are you going to coordinate those two firms? That to me just creates confusion,” he said.

Hann also stressed that Malaysia will not suffer the same fate as Mexico in implementing the 5G technology as Malaysia is learning lessons from other countries. 

“The government could have chosen a regional network perspective but they (Malaysian government) chose a national one which is totally legitimate and totally understandable. 

“[In implementing 5G] you know you want to have good business operations, have a good vendor and you want to have some sort of transparent reporting,” he shared. 

The federal government has yet to decide on the single wholesale network (SWN) model for 5G rollout in the county and recently, Digital Nasional Bhd (DNB)’s chief executive officer Ralph Marshall, in his reply to Bangi member of Parliament (MP) Ong Kian Ming, stressed that there will be enormous implications should the government decide on having a DWN model.

“It is highly unlikely that DNB in its current form will survive should there be another wholesale network provider. 

“With the failure of DNB, the second wholesale provider will then eventually become a private SWN monopoly. 

“There are also financial, legal and reputational implications for the country and the government should DNB be discontinued,” Marshall said.

Meanwhile, RHB Investment Bank in its research note on Jan 25 said the DWN model would cause more challenges, delay 5G execution, and contribute to excess capacity in the long run.

Its analyst Jeffrey Tan said in a note that DWN would also negate DNB’s strategic supply-driven model/mandate, resulting in potentially higher cost to serve as traffic and revenue will be shared.