The government should set up an independent body to discuss the pros and cons of having only one company deploying and managing Malaysia’s 5G network.
The same body should also be tasked with looking at public complaints against the service provider or providers.
These are just two suggestions by Federation of Malaysian Consumers Associations (Fomca) secretary-general Datuk Paul Selvaraj, and veteran economist, Tan Sri Ramon Navaratnam.
They are not in favour of the government-back Digital Nasional Bhd (DNB) being the sole provider of 5G in the country, as they believe a monopoly will not benefit consumers.
This comes as Communications and Digital Minister Fahmi Fadzil is expected to meet Prime Minister Datuk Seri Anwar Ibrahim tomorrow to discuss what role, if any, DNB will play in the 5G network rollout.
There are also suggestions of having another company share the distribution of the 5G network, or empower telecommunications companies, instead.
“Public policy should be about maximum competition with effective service provided to the public at a reasonable cost,” said Navaratnam.
“That does not happen if there is a monopoly for the following reasons – there is no competition, the quality and service will deteriorate, new technology is blocked, and we remain static in a dynamic world. Also, it gives undue preference to some individuals, which can breed cronyism.
“Cronyism can kill a country.”
He added that an independent body should study the implications of having a monopoly, or allowing more than one company to handle 5G, and to ensure processes and procedures of fair competition are observed.
“This independent body should have proper supervision to keep track of public complaints (about the 5G providers),” said Navaratnam.
“It should be open, accountable, and transparent to ensure the credibility (of the service providers) is not affected, and that public confidence is not diminished.
“Internationally, it is the telecommunications companies that handle the rollout of the 5G networks, so why do it differently in Malaysia?”
DNB, a special-purpose vehicle company wholly owned by the Finance Ministry, was set up to be the sole provider of infrastructure for the 5G network. The company would then offer it to telecommunications companies and retailers in a single wholesale model. The company, however, had been a talking point since its inception.
Last month, Anwar said all ministries had been told to review monopolies and to provide a fair assessment of the monopolies to ensure that the public enjoys fair and efficient service.
Both Navaratnam and Selvaraj said the Malaysian Communications and Multimedia Commission is “part of the system”, and therefore, an independent organisation would be able to better assess the impact of competitors’ behaviour on consumers.
Selvaraj added that having more 5G providers gives consumers better choices.
“If there is a monopoly, it will surely lead to consumers suffering higher prices and quality of service issues, as no one can challenge the provider,” said Selvaraj.
“But if consumers have options, 5G providers will offer attractive packages to attract more clients. Greater competition benefits the rakyat (people).”
Selvaraj said Fomca was also against the merger of telecommunications companies Digi and Celcom, as having fewer players reduces consumers’ choices and gives telcos more control.
He added that was why Fomca was against having only one 5G provider in the country.
On March 27, Titiwangsa MP, Datuk Seri Johari Abdul Ghani, told Twentytwo13 that it “isn’t straightforward to unwind” DNB’s role in the 5G rollout in the country.
The 5G network coverage in Malaysia has reached 55 per cent as at the end of last month, according to Fahmi. The government believes it could reach its 80 per cent target of 5G network coverage in populated areas by the end of this year.
