15-7-2023 (KUALA LUMPUR) Maxis Bhd, a Malaysian mobile operator, has announced that it will sign an agreement to access the country’s state-run 5G network. This makes Maxis the last major carrier to join the contentious 5G rollout in the country.
Malaysia has adopted a unique model for 5G deployment, wherein instead of allocating spectrum to wireless carriers, it will charge them to access the 5G spectrum that is entirely owned by state-run Digital Nasional Berhad (DNB).
Maxis, along with some other carriers, had earlier pushed for a review of DNB’s pricing terms, saying they were not commercially viable and could lead to higher costs for customers and slower adoption rates. The single-ownership plan had also raised concerns over monopoly.
In a statement on Friday, Maxis said that it was ready to sign the access agreement as there were no other 5G options and it was in its best interests.
“There is no alternative wholesale network providers undertaking the deployment of 5G infrastructure and network,” Maxis said.
The company expects to incur operating expenses of about 360 million ringgit ($79.59 million) per year for the access agreement.
Signing the access agreement with DNB is a crucial step towards deploying 5G. The country’s other major carriers had signed agreements late last year after the state agency made some changes.
DNB has defended itself from criticism over pricing, saying it will charge operators less to access its 5G network than their costs for 4G. It has also said that the communications regulator would put in place stringent guidelines to ensure fair pricing and a smooth rollout.
The Malaysian government has addressed concerns over a monopoly by announcing that it would allow a second operator next year after DNB’s coverage reaches 80% of populated areas.
