This article appeared in Malaysia Post on 1 March 2023.

LETTER| The Malaysian government’s decision to roll out a nationwide 5G network is a crucial step towards ensuring equitable access to affordable telecommunications services.

However, the suggestion by Titiwangsa Parliament Member, Datuk Johari Ghani to have private companies lead the roll out may not be the most effective way to achieve this goal.

5G networks have the potential to revolutionize the way we use and access the internet.

With faster speeds and more reliable connections, 5G can enable new technologies like autonomous vehicles, virtual and augmented reality, and the Internet of Things (IoT).

These advancements have the potential to create new industries and transform existing ones, but they will only be accessible to those who can afford to pay for high-speed internet.

This is where the Malaysian government’s decision to roll out a nationwide 5G network becomes crucial.

By ensuring that all Malaysians have access to 5G at affordable prices, the government can help bridge the digital divide and provide equal opportunities for all citizens.

One way the government can achieve this is by implementing a Single Wholesale Network (SWN) for 5G.

A SWN is a network that is owned and operated by the government or a public utility and leased to multiple telecommunications companies at wholesale rates.

This approach can help reduce the cost of 5G services by eliminating the need for each company to build its own network infrastructure.

In addition, a SWN can promote competition and innovation by allowing smaller companies to access the same network as larger ones, ensuring a level playing field.

Global comparative analysis shows that countries with natural monopolies for key utilities, like telecommunications, tend to have more equitable access and lower costs for consumers.

For example, in South Korea, the government owns a majority stake in the country’s three largest telecommunications companies.

As a result, South Koreans enjoy some of the world’s fastest internet speeds at relatively low prices.

Similarly, in New Zealand, the government’s publicly owned network operator, Chorus, is responsible for providing access to the country’s ultra-fast broadband network.

This approach has helped reduce costs and ensure that all citizens have access to high-speed internet.
However, there are concerns about the suggestion by Titiwangsa MP to have private telecommunications companies lead the 5G roll out.

This approach could result in a lack of competition, as larger companies may be able to outcompete smaller ones.

In addition, private companies are motivated by profit, which could lead to higher prices for consumers and less investment in infrastructure.

Furthermore, a private-led roll out may not prioritize the needs of underserved communities or rural areas, which may not be profitable for private companies to serve.

This could result in further exacerbation of the digital divide and inequitable access to telecommunications services.

To address these concerns, the Malaysian government could consider implementing a hybrid approach, where a public utility or government-owned company leads the roll out of the 5G network, while private companies are allowed to lease access to the network at wholesale rates.

This approach can help ensure that all Malaysians have access to 5G services at affordable prices while promoting competition and innovation.

In conclusion, the Malaysian government’s decision to roll out a nationwide 5G network is a critical step towards ensuring equitable access to affordable telecommunications services.

However, it is important to consider the most effective approach to achieve this goal, including the implementation of a Single Wholesale Network and the benefits of natural monopolies for key utilities.

A hybrid approach that includes both public and private investment in the 5G network such as Digital Nasional Berhad (DNB) may be the most effective way to ensure equitable access for all Malaysians.