KKD: Expansion of 5G Network Coverage to See Lower Internet Costs

Internet users can look forward to lower service costs with Malaysia's plan to expand its 5G network coverage under Budget 2023.

The development of the 5G network will be spearheaded by Digital Nasional Berhad (DNB), which has set its 5G services at a reference price of RM0.13 sen per gigabyte, according to a press release by the Ministry of Communications and Digital (KKD) on March 13.

The price is competitive and lower than the current cost of 5G services, which are priced at RM1.68 cents per gigabyte, as per Deputy Communications and Digital Minister Teo Nie Ching in response to a supplementary question from Lim Guan Eng (PH-Bagan).

At present, the implementation level of 5G services in Malaysia is 54.7%, she said, but the KKD expects to reach its target of 80% by the end of 2023, which includes extending coverage to areas like Cameron Highlands (Pahang) and Sibu (Sarawak).

As market forces dictate the prices for 5G services, she added that the Malaysian Communications and Multimedia Commission (MCMC) can adjust the prices at the wholesale level.

As for whether the DNB would be wholly owned by the Ministry of Finance or controlled by a telecommunications company, Teo added that discussions are underway.

"[W]e (the ministry), together with the telco, are negotiating because the telco has several questions... If it acquires DNB shares, what are its rights as a shareowner?" she was quoted as saying. "So, there are details that need to be refined before the telco makes a decision."