KUALA LUMPUR/SINGAPORE
Three sources familiar with the situation told Reuters that two of Malaysia’s top mobile carriers have no plans to invest in a state-owned 5G agency, a setback that threatens to throw the country’s 5G deployment into deeper turmoil.
The decision by Maxis Bhd. and U Mobile has also prevented the government from signing agreements with other carriers, according to two individuals who requested anonymity because they were not authorised to discuss private discussions.
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“(The parties) will have to attempt to modify the agreement,” stated one individual.
The government had hoped that six of the country’s mobile phone companies would agree to buy a 70% stake in the Digital Nasional Berhad (DNB) agency.The deadline for a deal after months of negotiations was Wednesday.
The government turned down a counteroffer from Maxis, U Mobile, Celcom Axiata Bhd, and DiGi Telecommunications to buy a controlling interest together.
Two of the people said that Maxis and U Mobile don’t see any reason to become a minority stakeholder in DNB. However, they have told the government that they want to keep talking about getting access to DNB’s 5G network.
Maxis, DNB, and the Malaysian ministries of finance and communication did not reply quickly to demands for comment. Celcom, Digi, and U Mobile declined to comment.
The implementation of 5G has been delayed in Malaysia.
Two smaller carriers started testing 5G in December 2021, but the four biggest ones didn’t join. They said that the government’s plan for DNB to control the whole 5G spectrum would make it harder for companies to compete and raise questions about pricing and transparency.
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They then requested permission to establish a second 5G service.
The government rejected the idea but stated that it would grant the carriers’ interests in DNB to allay their fears. It contends that their strategy would save costs, increase efficiency, and expedite infrastructure construction.
DNB said that the country’s communications authority would come up with strict public standards to make sure that prices are fair and that the network is set up smoothly.