Malaysia is poised to benefit from a 10-year 5G partnership between Ericsson and Digital Nasional Berhad (DNB) to drive the nationwide deployment of the next-generation wireless cellular technology in Malaysia. Digital Nasional Berhad (DNB) which is wholly owned by the Minister of Finance (Incorporated) and is licensed under the Communications and Multimedia Act 1998 (the Act) was mandated by the Government of Malaysia to be the single neutral party to undertake the deployment of 5G infrastructure and network nationwide to provide wholesale 5G coverage and capacity to other licensees under the Act.
Since the announcement of DNB as the single wholesale party of 5G network, many doubts raised by the public concerning transparency and monopoly issues. Hence it is hoped that this article would help to address some of the doubts based on the author’s personal point of view.
5G Investment and ROI
Before the transparency and monopoly issues kick-in, let’s review the cash investment involved in order to undertake the deployment of 5G infrastructure nationwide. It can be seen from Fig. 1 that the cost estimation for the upgrade of network from 4G to 5G is tremendous, and this is only based on coverage consideration without taking into account the on-going investment in capacity which may be required for long term. The estimates is also broadly indicative and not definitive due to the uncertainties of timing in rollout.
Assuming DNB is non-existence, there is a very important question to ask.
How ready are both telco operators and public for 5G network?
As telco operators, they had and have ongoing investment in network infrastructure for the existing 3G, 4G and now the 5G with the cost estimation as indicated above. Based on previous experiences, a typical ROI for one network generation investment is 5–7 years. 4G was first deployed in the year 2013–2014 and is only starting to see returns in investment. A simple math will tell you how ready and willing a telco operator is to fork out another huge investment for 5G infrastructure now if it is purely based on business reason.
Now let’s come back to public or the consumers’ interest of 5G network of the first phase. The first phase here refers to the eMBB (enhanced mobile broadband) where consumers are allowed to enjoy seamless connectivity of 10s Gbps data rate. But are Malaysia’s consumers ready with 5G phones to enjoy these benefits? This factor will have a direct impact on the operator’s decision of 5G investment. Why invest in an infrastructure when consumers do not have the devices capable of utilizing it? So it is really a chicken and egg problem, which factor should drive the market first.
Joint-Investment in 5G Development
And this bring us to a critical question that telco operators will ask:
why should all telco operators invest on their own 5G infrastructure if the infra and services can be made shared by multiple operators with one time investment?
This approach will not only save the investment cost by N times (with N operators in Malaysia) but also speed up the rollout of 5G in Malaysia. So who should be investing in infra among the telco operators? Now you may see the importance of DNB and its coordination role as outlined:
- Accelerate deployment of 5G infrastructure and network in Malaysia
- Realize the potential of 5G in Malaysia to spur economic activity
- Narrow the urban-rural digital divide and improve the current state of infrastructure
- Avoid duplication of infrastructure and optimize the use of scarce resources
- Promote service-based competition within the communications industry
DNB is set as the single wholesale party for 5G as a mean to coordinate between all operators in Malaysia. In effect, DNB will lead the charge for all stakeholders in the deployment of 5G in Malaysia.
It was reported on 10th November 2021, sole 5G wholesale service operator Digital Nasional Bhd (DNB) successfully integrated five mobile network operators (MNOs) into its 5G network, namely Celcom Axiata Bhd, Digi.Com Bhd, Maxis Bhd, Telekom Malaysia Bhd, and U Mobile Sdn Bhd, with a sixth slated to be integrated in future. This approach provides the access to a single RAN by a number of other operators where each operator operates its own core network, including one or more independent nodes. It was committed by DNB that the 5G network is on track for launch in areas within Kuala Lumpur, Putrajaya and Cyberjaya by December 2021. And by 2024, about 80% of the population is expected to enjoy 5G coverage.
MEASAT Interferences
Having welcomed the rollout of 5G in Malaysia, there is also a technical challenge/obstacle concerning the coexistence with incumbent services which needs to be addressed. The 3.5GHz band (C-band) identified for 5G network is currently utilized by Malaysia East Asia Satellite (MEASAT) for their operational satellites, of which installation and testing of equipment for a satellite control station is set on Langkawi Island. MEASAT-3, MEASAT-3a, and Africasat-1a will continue to use the C-band spectrum for the upcoming MEASAT-3d satellite, scheduled for launch in the second half of 2021.
The C-band is also used to perform critical commands, telemetry, a range of controls for MEASAT satellites, and to monitor the satellites’ overall health. Control links are transmitted through stations located in Cyberjaya (primary) and Bukit Jalil (back-up). The Cyberjaya and Bukit Jalil control stations also monitor live traffic on the entire C-band payload of the MEASAT satellite fleet to ensure quality of service. Deployment of the 5G Base Station adjacent to the incumbent receiver in the reallocated C-band spectrum will no doubt generate interference in the incumbent’s receiver system.
So how can Malaysia overcome this challenge? Stay tuned for the next article for the mitigation method!
Originally published at http://filpal.wordpress.com on November 14, 2021.
