Conflict of interest there from the start in 5G roll-out, says internet veteran

Four mobile network companies have taken up shares in government-owned Digital Nasional Bhd, which was set up as the national 5G wholesaler. (Bernama pic)

PETALING JAYA: Conflict of interest has always existed in Malaysia’s 5G roll-out because of the failure to ensure that Digital Nasional Bhd is an independent entity, says internet veteran Mohamed Awang Lah.

He also called for the restructuring of government-owned Digital Nasional Bhd (DNB), originally set up as the national 5G wholesaler, so that it will be independent of the industry.

Mohamed, who was chief executive of Jaring, Malaysia’s first internet provider, said mobile network operators (MNOs) should have been allowed to operate their own 5G services without the government getting involved.

The phone companies should not have been invited to hold shares in DNB, said Mohamad, who is often known as Mal.

“Having set up DNB, they then brought in the MNOs as shareholders. That is a conflict of interest. DNB should be independent and neutral, not serve the operators. DNB should not be dictated by their clients,” he told FMT.

DNB, owned by the Minister of Finance Incorporate, was set up to roll out 5G services in Malaysia as a wholesaler of 5G services to the mobile networks.

Protests by the companies led the government to announce a second network, with the companies invited to take up shares in DNB.

Mohamed said the government should scrap the roll-out of a second 5G network and instead focus on restructuring DNB to ensure its independence from industry players.

The alternative, he said, would be to “just dismantle DNB”.

“Let the operators have their own 5G network and let the private sector drive it completely. This way, they can compete more effectively and hopefully, that will benefit end users,” he said.

Several days ago, communications minister Fahmi Fadzil told the Malaysian Communications and Multimedia Commission to begin identifying and appointing an MNO to develop the second 5G network.

But Bersatu’s Wan Ahmad Fayhsal Wan Ahmad Kamal urged the government to halt plans to develop a second network, saying the current scheme may lead to a conflict of interest among mobile network operators and DNB itself.

CelcomDigi, Maxis, U Mobile and YTL Communications have confirmed successfully meeting the conditions of a share subscription agreement, allowing them to acquire a collective 70% stake in DNB.

Wan Fayhsal said it was astonishing that the same companies that acquired a stake in DNB would be allowed to apply for appointment to develop the second 5G network.

Given that they collectively control 90% or more of the Malaysian mobile services market, Wan Fayhsal said the successful applicant was bound to channel its subscribers to the second 5G network, to the disadvantage of DNB.