Govt may see RM12 bil loss from direct sales of 5G spectrum to telcos: Pakatan

LocalBusiness & Finance
28 Oct 2021 • 11:43 AM MYT
The Vibes
The Vibes

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Govt may see RM12 bil loss from direct sales of 5G spectrum to telcos: Pakatan

KUALA LUMPUR – Opposition coalition Pakatan Harapan is calling for the implementation of the national 5G infrastructure to be debated in Dewan Rakyat.

The digital, communications, and multimedia special committee said telecommunications companies (telcos) will be forced to rent the 5G spectrum from Digital Nasional Bhd (DNB), as opposed to bidding when the 2G, 3G, and 4G rollouts are done.

It added that the government will end up losing out from direct sales of the 5G spectrum to telcos, estimated to be around RM7 billion to RM12 billion.

Following an interview by DNB chief executive officer Augustus Ralph Marshall, the company is expected to be getting a series of bank loans and sukuk bond offers next year.

The committee in a statement suggested that in the event DNB is not able to settle those debts, they will end up being borne by taxpayers – given that DNB is a government-owned company.

Making reference to a Malaysian Communications and Multimedia Commission guideline issued in July, the committee said telcos will only be able to provide services on the 4G spectrum, and not 5G and beyond.

This, the committee said, amounts to the removal of technology neutrality and must be reconsidered.

DNB is a special purpose vehicle established by the government to implement Malaysia’s 5G infrastructure.

DNB is also expected to spend RM16.5 billion to RM20 billion over 10 years for the purposes of building the nation’s 5G infrastructure to cover 80% of Malaysia, come 2024. – The Vibes, October 28, 2021