KUALA LUMPUR, Feb 16 — An expert advising the Brazilian government and the United Nations on 5G strategy said today Malaysia’s plan to roll out the next generation of mobile broadband technology via the controversial single wholesale network (SWN) “is definitely something worth exploring”.
Critics of the model, including private mobile network operators, have raised concerns about Putrajaya’s decision to award the 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 the scepticism was expected, but suggested it could be overcome by inspiring confidence through tight regulation, transparent reporting and genuine engagement.
“On the SWN side, I personally think wholesale models are non auction networks, which are really good innovative solutions being looked at,” he said at a private media briefing held here this evening.
“For Malaysia’s case, I think it’s more than worth exploring. Because I think the goal here is to have infrastructure stability, common infrastructure that MNOs not only can use but also new actors can apply to that so that you can have service sector competition and growth,” he added.
“So it’s something more than valued and is worth exploring.”
Haan, currently in Malaysia for a private work visit, was invited to speak by Digital Nasional Berhad, the MOF-designated private vehicle that will develop the necessary infrastructure to distribute 5G spectrum to private players at “base cost”.
Its chief executive, telecommunications stalwart Ralph Marshall, has repeatedly stressed that DNB was set up to expedite the country’s 5G rollout and make it accessible as part of a national plan to use the high-speed internet technology to boost and make growth more inclusive.
MNOs have so far baulked at the idea, and is now pushing for a dual network system run paralleled to DNB’s SWN, saying competition would reduce the chance of DNB squeezing spectrum prices and force more innovation, ultimately benefiting consumers.
“I find their (MNOs) concerns understandable, but we’ve been here before,” Haan said, citing telecommunication operators’ initial scepticism when cellular network technology first emerged.
“On infrastructure heavy industries, the SWN model is worth looking at… but think of it as utilities, think of ports, think of airports. You don’t have to have three different airports for different carriers,” Haan added.
“The airport is the infrastructure, while the carriers like Emirates, Qatar, Singapore, and Malaysian airlines can play their part.”
But Haan echoed the calls for more transparency, saying confidence is pivotal to a SWN’s success.
“The government runs and manages and those entities have to be transparent in reporting to governments and other stakeholders. God help you if your airport closes, the citizens would let you know in a heartbeat,” he said.
The UN adviser also raised concerns about the sort of structure proposed for a dual network system, saying there would be complex and overlapping jurisdiction.
The DWN model also risks what he called “functional structural separation”, whereby the companies that form the consortium would have difficulties deciding who does what.
Consultancy McKinsey describes structural separation in telecommunications as breaking an integrated operator into two freestanding businesses: one that operates the network (the NetCo) and one customer-facing entity (the ServCo), the goal being the resulting units will perform better by clarifying management focus and improving capital allocation.
“I believe personally the dual wholesale model creates more confusion. Who is responsible for the dual model?” Haan asked.
“The other issue with the dual model is if you go four or five years or so. You will have to separate out the companies, which is the functional structure separation and that never goes easily. Functional structure of separation is very hard to do,” he added.
“So, it’s difficult and creates confusion in the marketplace.”
