Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said that with the SWN model, each telecommunication provider would save more than 50 per cent of its cost, and that, in turn, those savings could go towards reducing the price of services charged to customers, while still paying more dividends to their respective shareholders at the same time. — Bernama pic
KUALA LUMPUR, Dec 10 — Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz today moved to clarify the proposed use of the Single Wholesale Network (SWN) model for the 5G network launch.
He also revealed that his ministry’s cooperation with the Ministry of Communications and Multimedia (KKMM) on the project began in 2019.
In a Facebook post this evening, Tengku Zafrul said he felt that he needed to address this, along with other related facts, after Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said in Parliament yesterday that the Ministry of Finance (MoF) had not included KKMM in its decision to use the SWN model for the rollout of 5G.
“He stated that there has been no negotiation between MoF and KKMM regarding the selection of Digital Nasional Berhad (DNB) for the implementation of 5G networks and infrastructure through the SWN model.
“In fact, during that time, MoF was working closely with KKMM and its regulatory agency, the Malaysian Communications and Multimedia Commission (MCMC), in efforts to improve digital connectivity in Malaysia.
“I have been in constant discussion with the minister of KKMM, both past and present, and I will continue to work closely with the minister for the well-being of our country’s digital economy,” he said in the Facebook post.
Tengku Zafrul said that with the SWN model, each telecommunication provider would save more than 50 per cent of its cost, and that, in turn, those savings could go towards reducing the price of services charged to customers, while still paying more dividends to their respective shareholders at the same time.
He added the cost of implementing the 5G network will be financed through a combination of delayed financing to vendors, trade and working capital financing, as well as sukuk programmes in the country’s capital markets.
“It will also not involve any guarantees or funding from the government, particularly off-balance sheets, as some have alleged.
“DNB will obtain the financing through financial services such as banks, and this will be repaid through sales generated from wholesale capacity sales,” he said.
In terms of the 5G spectrum leading cost, Tengku Zafrul said the claim that DNB will charge telcos double is also unfounded, adding that he had already made it clear in Parliament on November 25 that DNB would charge less than 20 sen per gigabit (GB) for 5G to the telcos.
“In comparison, this is significantly cheaper than the current additional cost per GB of 4G by telcos, which is at a rate of 45 to 55 sen per GB,” he said.
He also said that many have noted the failure of the SWN model in other countries, however stressed that DNB has been established with the utmost rigour, and comprises the most experienced experts in the telecommunications industry.
“The government’s ability — through DNB — should be given a chance, as one day, we will be able to prove that their assumptions are inaccurate, and Malaysia can succeed in implementing the model for 5G,” he said.
Tengku Zafrul also touched on the assumption that the interests of Bumiputera contractors will be pushed aside in the 5G project, which he said was completely untrue.
“This is because one of the conditions of the 5G project is the need to benefit at least 60 per cent of Bumiputera contractors over the next 10 years, as agreed by the Bumiputera Prosperity Council chaired by the prime minister on November 17,” he said.
Yesterday, Zahidi told the Dewan Rakyat that MoF insisted on handling Malaysia’s 5G rollout despite knowing that the formation of Digital Nasional Berhad (DNB) would monopolise the telecommunications industry in the country.
He said telco officials had met with representatives from DNB and told them they were not keen on a monopoly, but in the end, MoF insisted on handling the 5G rollout.
Zainul added his ministry was only providing a service within the spectrum of 5G.