DNB denies telcos are snubbing 5G network

November 12, 2021

DNB denies telcos are snubbing 5G network

PETALING JAYA: Digital Nasional Bhd (DNB) has refuted a Reuters report that said no Malaysian telcos had signed up yet to use its 5G network, saying it had not even begun formal negotiations with local firms.

According to the Malay Mail, DNB said in a statement it has yet to finalise the necessary reference access offer (RAO).

“We will only be able to sign up the telcos after the publication of the RAO. It is thus clear that DNB has not sought any sign-up and neither expects the mobile network operators to sign anything until after the RAO is published.

“The RAO will form the basis for DNB to enter into commercial agreements with licensees who are access seekers. DNB anticipates finalising its RAO by end-November upon the Malaysian Communications and Multimedia Commission’s approval.”

The company also denied portions of the report that said 5G access would be expensive. Some sources quoted by Reuters had said the high cost was why telcos were shying away from the spectrum.

DNB said the cost per gigabyte communicated to the telcos was significantly lower than if the firms maintained their own 5G networks.

“The logic for lower costs with a single shared infrastructure is simple. Everywhere in the world, highways are built and shared for drivers of all makes of cars. Imagine the cost if each car maker were to build their own highways for exclusive use,” it said.

DNB also denied that the telcos would become less profitable as a result of the structure necessitated by DNB.

The company said that despite this assertion, the stock prices of “all listed telcos” have outperformed the larger local Bursa index since the government announced the formation of DNB.

“Clearly, investors do not believe the telcos will face value destruction.”