The Malaysian government has officially terminated Digital Nasional Berhad’s (DNB) status as the sole provider of the country’s 5G network. Ministerial Direction No. 4 of 2024, issued on 31 December 2024, transitions Malaysia from a single wholesale network model to a dual 5G network approach. This move follows the appointment of U Mobile to lead the rollout of the second network, a decision that has sparked mixed reactions.
DNB Loses Monopoly
DNB was initially established in 2021 under the administration of then Prime Minister Tan Sri Muhyiddin Yassin as a neutral, government-owned entity to manage Malaysia’s 5G infrastructure. It aimed to centralise the rollout, reducing redundancies and costs while providing equal access to telcos. However, this model has now been scrapped, allowing competition through the dual network system.
The new model is expected to foster competition, accelerate 5G deployment, and potentially lower costs for users. However, critics question how the government plans to balance the financial and operational sustainability of this system.
Why U Mobile?
U Mobile, Malaysia’s smallest telco in terms of market share and infrastructure, was a surprising choice to lead the second 5G rollout. According to the Malaysian Communications and Multimedia Commission (MCMC), U Mobile was selected based on its technical plans, service records, and contributions to prior infrastructure projects like JENDELA Phase 1.
Despite this, concerns linger about U Mobile’s capacity to execute such an ambitious project. Many argue that larger telcos like Maxis or CelcomDigi would have been better suited given their extensive resources and market presence.
Lingering Questions
While the dual 5G model is meant to create a competitive environment, significant challenges remain. Chief among them is DNB’s financial sustainability. The company has already spent RM5 billion on the 5G rollout, funded largely through private loans guaranteed by the government. As U Mobile steps into its new role, will it or other telcos be required to repay DNB’s existing debts?
Another question is the spectrum allocation. Despite U Mobile being announced as the second network provider months ago, the MCMC has yet to outline rollout targets, spectrum assignments, or specific deliverables. These details are crucial for ensuring the dual network model works seamlessly without overlap or inefficiencies.
What’s Next?
For consumers, the dual network approach promises faster rollout, improved coverage, and potentially lower costs. However, the transition could take years to stabilise, especially if financial and operational hurdles are not addressed.
The government’s decision marks a turning point in Malaysia’s digital infrastructure strategy, but its success hinges on careful implementation, transparent communication, and robust oversight.
What Does This Mean for You?
For now, Malaysians can expect 5G services to continue under DNB while the second network takes shape. Whether these changes lead to better connectivity and affordable pricing remains to be seen. As always, consumers should keep an eye on developments and question how these policies impact their daily lives—and their wallets.
