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Home›United Nations›UN 5G adviser says DNB’s single wholesale model is viable, dual system can be messy | Malaysia

UN 5G adviser says DNB’s single wholesale model is viable, dual system can be messy | Malaysia

By Calvin Teal
February 16, 2022
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A woman checks her mobile phone during the announcement of the commercial availability of 5G services in Malaysia, at the Sentral Depot in Kuala Lumpur on December 15, 2021. — Photo by Miera Zulyana

KUALA LUMPUR, February 16 – An expert advising the Brazilian government and the United Nations on 5G strategy said today that Malaysia’s plan to roll out the next generation of mobile broadband technology through the controversial wholesale network unique (SWN) “definitely worth exploring”.

Critics of the model, including private mobile network operators, have expressed concerns over Putrajaya’s decision to assign spectrum distribution right to a single entity owned by the Ministry of Finance, among them the possibility of a monopoly.

Brett Haan, the man who helped develop the same 5G plan for Mexico, said skepticism was expected but suggested it could be overcome by instilling confidence through strict regulation, transparent reporting and a real commitment.

“From the SWN side, I personally think the wholesale models are auction-free networks, which are very good innovative solutions to be considered,” he said at a private press conference held here this week. evening.

“In the case of Malaysia, I think it’s worth exploring. Because I think the goal here is to have a stable infrastructure, a common infrastructure that not only MNOs can use but new players can apply to that so you can have competition and industry growth services,” he added.

“So it’s something more than valued and worth exploring.”

Haan, currently in Malaysia for a private working visit, was invited to speak by Digital Nasional Berhad, the MOF-appointed private vehicle that will develop the infrastructure needed to distribute 5G spectrum to private players at “base cost “.

Its chief executive, telecommunications stalwart Ralph Marshall, has repeatedly pointed out that the DNB was created to accelerate the rollout of 5G in the country and make it accessible as part of a national plan to use internet technology. broadband to stimulate and make growth more inclusive.

MNOs have so far balked at the idea and are now pushing for a dual network system parallel to DNB’s SWN, saying competition would reduce the chances of DNB squeezing spectrum prices and force more innovation, which which would ultimately benefit consumers.

“I find their (MNOs’) concerns understandable, but we’ve been here before,” Haan said, citing initial skepticism from telecom operators when cellular network technology first emerged.

“On infrastructure heavy industries, the SWN model is worth looking at, but think of it as utilities, think ports, think airports. You don’t need to have three different airports for different carriers,” Haan added.

“The airport is the infrastructure, while carriers like Emirates, Qatar, Singapore and Malaysian airlines can play their part.”

But Haan echoed calls for more transparency, saying trust is essential to the success of an SWN.

“Government leads and manages and these entities must be transparent in their reporting to governments and other stakeholders. God help you if your airport closes, citizens will let you know in the blink of an eye,” he said.

The UN adviser also raised concerns about the type of structure proposed for a dual-grid system, saying there would be complex and overlapping skills.

The DWN model also risks what it called “functional structural separation”, whereby the companies that form the consortium would have difficulty deciding who does what.

Consulting firm McKinsey describes structural separation in telecommunications as the division of an integrated operator into two autonomous companies: one that operates the network (the NetCo) and a customer-facing entity (the ServCo), the objective being that the resulting units will work better by clarifying management direction. and improving capital allocation.

“I personally think the dual wholesale model creates more confusion. Who is responsible for the dual model? Han asked.

“The other problem with the dual model is if you go away four or five years or so. You will have to separate the companies, which is the separation of the functional structure and that is never easily done. The functional structure of the separation is very hard to do,” he added.

“So it’s difficult and confusing in the market.”

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