Halting the practice of awarding of 5G spectrum directly to “selected companies” is a welcome move.

However, awarding 5G spectrum through open tender to the lowest bidder may raise the cost of implementation. The cost of deploying new mobile generation is expensive and telcos will surely focus on recouping the capital within short period of time.

Splitting the 5G spectrum to multiple telcos will create a redundant 5G network for a small nation, which is neither efficient nor economical for Malaysia. Subsequently, telco(s) will either have to slow the expansion or charge a premium for 5G which will be passed on to the consumer.

It is in the best interest for Malaysia to appoint a government-linked company (GLC) to become the sole network developer for 5G, whereby all telco operators can utilise the infrastructure developed this way. The sole network developer will ensure a rapid expansion of 5G nationwide, improving Malaysia’s telecommunication infrastructure.

The Malaysian Communications and Multimedia Comission (MCMC) must regulate the sole 5G developers’ margin of return on 5G assets and ensure fair access to the 5G networks for all telecommunication firms. The forgone revenue from open tender by the MCMC could be collected in the form of dividends and taxes from the GLC itself.

Written by

SHARAN RAJ
Central Committee
Parti Sosialis Malaysia (PSM)
&
State Chairperson,
Parti Sosialis Malaysia Negeri Melaka (PSM Malacca)