REJECTING ASYRAF WAJDI’S QUESTION AGAINST DNB
1. Does the monopoly method of granting 5G projects to DNBs using the Single Bulk Network (SWN) model benefit people?
The Single Bulk Network (SWN) model adopted by the DNB benefits people. Previously, independent telecom companies developed 3G and 4G infrastructure without significant government intervention. This makes them tend to develop the Internet spectrum into more commercial areas. This has resulted in a growing digital divide between urban and rural areas.
According to the Communications and Multimedia Commission of Malaysia (MCMC), the quality of 4G networks for major cities in mainland Malaysia such as Klang Valley, Penang and Johor Bahru is around 84% compared to just 44% for rural areas in EAST Malaysia. This is very frustrating: that’s why people need a new alternative like DNB CONCEPT.
Other benefits obtained by the people are:
Less than 20 cents per gigabyte will be distributed for Telcos compared to the price of 45 cents – 55 cents per gigabyte for 4G.
1.25 – 1.33 Gbps on first try of 2019. Still improved so far compared to 30 Mbps for 4G. Minimum speed 40 times
3518 5G towers will be developed before 2023. 500 5G sites have been identified in Phase 1A. 10,000 towers are expected to be enough compared to the current 4G that uses 23,000 towers across the country.
- Is the DNB monopoly model in building network infrastructure as opposed to competition space for mobile network operators more beneficial to people?
In fact, building infrastructure is the most important thing, it is fundamental for the development of 5G projects. The DNB must take over this task. We previously heard the story of Vivonah who had to climb a tree with current eyes to get an internet connection. This is because substation towers are not installed in rural areas. Through the DNB, 5G towers are installed in the recesses of the region. The concept of the DNB is like the TNB that installs electric poles all the way to the end of the village. People as a whole will benefit not to mention young people who are now leaning towards online education. It is a benefit to the people.
Furthermore, the mockery of the DNB monopoly has been amplified beyond the actual reality. In the latest development, the DNB has agreed to offer up to 70 percent equity to telecom companies.
This action itself fundamentally contradicted the concept of monopoly. In fact, this proposal is a win-win solution for all parties, including DNBs, telcos and consumers. That is, the DNB no longer monopolizes the construction of 5G infrastructure, but telecom companies are also involved. So far, Telekom Malaysia and YES have expressed their willingness to accept the offer.
- Is it true that the cost has already reached 30 billion RM?
Is not true. The cost of developing 5G infrastructure by the DNB over a period of 10 years, as announced by the Ministry of Finance, is only RM 16.5 billion.
Indeed, the cost of implementing the DNB will not involve any government guarantee or funding, especially indirectly or ‘off balance sheet’. Instead, it will be financed through a combination of deferred supplier financing, as well as trade and working capital financing. In addition, it is also financed through a sukuk program that will be issued on the national capital market.
The DNB will obtain the funding through financial services such as banks and will be reimbursed through sales proceeds generated by the wholesale of capacity.
The UMNO Youth Chief appears to have missed his train. He was the last to question compared to other party leaders. In fact, DNB also managed to explain to all parties effectively.