MCMC further clarifies approach to 5G deloyment in M’sia
The Malaysian Communications and Multimedia Commission (MCMC) wishes to further clarify and reiterate the information shared at the recent analyst briefing with regards to the purpose of the Government of Malaysia Special Purpose Vehicle (GOMSPV) for 5G which will be regulated by the Commission.
The Commission is focused on encouraging investments in the right areas, i.e. services that are innovative and can be truly game-changing for consumers, enterprises and the country in general whilst ensuring that digital divide is kept to a minimum.
In such an effort, a dedicated GOMSPV regulated by MCMC will provide focus in rolling out the 5G network. This is key so that existing service providers can continue to roll out fiber as well as improve 4G coverage and quality. The burden of 5G will not be on the service providers whilst still ensuring that the digital divide risk is being kept at a minimum throughout the implementation of 5G network via the roll out of fiber and 4G network.
There will be private sector involvement which will be explained in greater detail by the GOMSPV in due course.
The spectrum is provided to SPV to build the network and offer capacity via wholesale. The non-auction model adopted is part of the effort to not burden cost on a new network, in addition to ensuring that readily available network elements will be used and not laid new. The GOMSPV will be offering services via wholesale that is transparent and regulated.The service providers offering retails services will have an open, fair and equal access to the new network.
This will be a strong indication towards reducing infrastructure-based competition and enhancing a service based competition that will only benefit end users whilst reducing foreign outflow especially for new equipment if multiple players were to build out a network.
The retail service providers can invest in more innovative services that will help them generate better income whilst end users are able to use the new services to generate more digital related economy.