Malaysia’s leading mobile operator, Maxis Bhd (MXSC.KL), has announced its intention to sign an agreement enabling access to the state-operated 5G network, making it the final major carrier to participate in the contentious rollout.
Malaysia has adopted a unique approach to 5G deployment, where instead of allocating spectrum to wireless carriers, it charges them for access to the 5G spectrum exclusively owned by the state-run (DNB).
Earlier, Maxis and some other carriers had advocated for a reassessment of DNB’s pricing terms, citing concerns over commercial viability and potential customer cost increases, as well as slower adoption rates. The single-ownership model had also raised apprehensions about monopolistic practices, Reuters reported.
Maxis issued a statement on Friday, expressing its readiness to sign the access agreement, stating that it was in the company’s best interest as there were no alternative 5G options available.
“At present, no other wholesale network providers are undertaking the deployment of 5G infrastructure and networks,” Maxis stated.
Under the access agreement, the company anticipates incurring approximately 360 million ringgit ($79.59 million) in annual operating expenses.
The signing of the access agreement with DNB represents a pivotal step towards 5G deployment. The country’s other major carriers had already signed similar agreements late last year, following some revisions by the state agency.
DNB has defended itself against criticism concerning pricing, asserting that it will charge operators less for accessing its 5G network compared to their costs for 4G.
Additionally, it has pledged that the communications regulator will establish stringent guidelines to ensure fair pricing and a smooth rollout.
To address concerns about a potential monopoly, the Malaysian government announced in May that it would permit the entry of a second operator next year once DNB’s coverage extends to 80 percent of populated areas.
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