5G Adoption Lags Behind At 4.2% Amid Concerns Over Expensive Devices

The Comms and Digital Ministry will be working closely with telcos and Samsung to provide affordable 5G devices for users in Malaysia.
(credit: DNB)

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Communications and Digital Minister Fahmi Fadzil stated that Malaysia’s 5G adoption rate, despite network coverage reaching 68.8%, remains low at 4.2%.

He also declared that the ministry would ensure the continuous expansion of 5G coverage and aim to achieve 80% coverage in populated areas by the end of the year, according to The Star.

On 6 August, Fahmi addressed the issue of Malaysia’s low 5G adoption rate during his visit to Samsung’s headquarters in South Korea.

He highlighted the high cost of 5G devices as one of the reasons behind the low adoption rate and announced plans for the ministry to collaborate closely with telecommunications companies and Samsung to provide affordable 5G devices for Malaysian users.

On 31 August, the ministry launched the 5G Rahmah package, offering devices as affordable as RM240, along with a 60GB data plan priced at RM60 per month. The package featured two phone options: the Samsung A14 5G and the Honor 90 Lite 5G.

During the MoU (Memorandum of Understanding) signing ceremony between CelcomDigi and Virnect, a South Korean tech company specializing in XR (extended reality) platforms for industries and organisations, Fahmi highlighted that such partnerships could enhance the 5G adoption rate.

He mentioned that this technology would revolutionise teaching methods at universities, particularly in fields like healthcare, oil and gas engineering, robotics, and cybersecurity, promoting experiential learning.

Last month, Fahmi indicated that his ministry would also hold meetings with local mobile network operators (MNOs) to address reports of additional charges for 5G subscriptions. Some telcos were reportedly imposing extra fees ranging from RM3 to RM20 for 5G access.

In our view, the deterrent for people to adopt 5G technology wasn’t solely limited to the high cost of 5G devices. It also encompassed additional 5G charges, concerns about reliability, and the extent of network coverage.

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