Cheaper internet for everyone with DNB model, says Tengku Zafrul

Digital National Bhd (DNB) charges telecommunications companies (telcos) less than 20 s per gigabyte (GB) for 5G service, Finance Minister Tengku Datuk Seri Zafarul Abdul Aziz (photo) said today.

“By comparison, this is much cheaper than the current incremental cost of 4G service produced by telcos between 45 and 55 s per GB per GB,” he said during a question-and-answer session today. Parliament.

The Malaysian Communications and Multimedia Commission (MCMC), as the regulator, will ensure that the prices set are reasonable and based on cost recovery, not profit generation.

“I am told that the pricing process for 5G is almost complete, and it is very different and much lower than the cost per GB of 4G service by telcos.”

Therefore, the Finance Minister said that he believes that telcos would welcome the pricing if notified later.

Tengku Zafarul said that DNB will also deploy 5G network for this purpose through Single Wholesale Network (SWN) model.

“The government is aware of the issues and challenges of SWN telecommunications in other countries and has taken steps to ensure that the same mistakes do not occur in Malaysia.”

Under this model, each telco is expected to pay DNB between 3.5 billion and 4.0 billion RM, or an average of 350 to 400 million RM per year, over the next 10 years.

This is significantly less than the annual capital expenditure of RM 1.0 billion for 4G invested by telcos.

“This means they get savings of more than 50 percent, and those savings can reduce the cost of services charged to customers or consumers, as well as pay higher dividends to their respective shareholders,” They said.

Apart from low cost and no significant capital expenditure, telcos will also be able to deliver 5G services faster if they try to launch them on their own. This will certainly bring huge benefits to the people, business and government.

“Most importantly, people can enjoy 100 times faster speed at a much cheaper cost. At the same time telcos can maintain their profit margins.

“I would also like to emphasize that the costs of implementing this 5G network will be financed through a combination of suppliers, trade finance and working capital, as well as the Sukuk program to be released in the national capital market.”

Nor will it be any government guarantee or financing, indirect or authorized, off-balance sheet, as some have claimed.