MP calls for govt to halt second 5G network citing ‘conflict of interest’

Bersatu’s Wan Ahmad Fayhsal Wan Ahmad Kamal says the government’s role is to protect businesses and consumers by regulating fair competition and ensuring price competitiveness.

PETALING JAYA: A Bersatu leader has called on the government to halt plans to develop a second 5G network, saying the current scheme may lead to a conflict of interest among mobile network operators and Digital Nasional Bhd (DNB) itself.

Wan Ahmad Fayhsal Wan Ahmad Kamal said Putrajaya had previously made it a requirement for telecommunication companies to have a stake in DNB, the owner of the country’s first 5G network.

The likes of CelcomDigi, Maxis, U Mobile and YTL Communications recently confirmed that they had successfully met the conditions of a share subscription agreement allowing them to acquire a collective 70% stake in DNB.

Several days ago, communications minister Fahmi Fadzil instructed the Malaysian Communications and Multimedia Commission (MCMC) to begin identifying and appointing an MNO to develop the second network.

Fahmi said MCMC would issue an applicant information package on July 1.

In a statement, Wan Fayhsal said he found it “astonishing” that the same telcos which acquired a stake in DNB would now be allowed to apply for appointment to develop the second 5G network.

The Bersatu Youth chief said there would be a clear conflict of interest on the part of the successful applicant for at least three reasons.

For one, he said, applicants would, by their very participation in DNB, have access to inside knowledge of all technical, financial and legal due diligence carried out on DNB.

“This immediately gives them an unfair advantage over DNB.”

He also said the presence of Maxis, CelcomDigi, and U Mobile representatives on DNB’s board of directors would mean that they would have access to information and a say in the management of DNB.

“They would be able to use this to their advantage when building and operating the second network.”

Thirdly, given that Maxis, CelcomDigi, and U Mobile collectively control 90% or more of the Malaysian mobile subscribers market, the successful applicant was bound to channel its subscribers to the second 5G network to the disadvantage of DNB itself, Wan Fayhsal said.

“As regulator, the government’s role is to protect businesses and consumers alike by regulating fair competition and ensuring price competitiveness,” he said, adding that plans to set up a second 5G network bore the hallmarks of “doom and failure”.

He instead called on the government to engage all stakeholders, including the public, on the best and most responsible way forward.