Will Malaysia Have Two 5G Wholesale Networks?

Generally speaking, two basic infrastructure models prevail in the connectivity business: firms build and own their own infrastructure, or retail providers buy wholesale from a sanctioned single network provider. 

Sometimes, though, there are variations on the pattern. In the U.K. market, for example, a single wholesale provider exists, but so do facilities-based competitors, including VirginMedia02 and independent internet service providers as well. 

In Malaysia, we might see a new pattern as well: two sanctioned wholesale providers. The current wholesale provider of 5G access, Digital Nasional Berhad (DNB), has ownership including the national government as well as equity stakes held by three mobile operators, CelcomDigi, Telekom and YTL, which own a collective 65 percent stake in DNB. 

CelcomDigi has a 25 percent ownership position. YTL Communications has 20 percent and TM 20 percent. 

CelcomDigi is the market share leader in Malaysia. But Maxis and UMobile are among leading firms not owning a stake in DNB. 

So a possible two national 5G wholesale networks would be a new pattern for 5G infrastructure supply. The upshot is that the leading 5G providers in Malaysia might all have partial ownership stakes in infrastructure companies supporting 5G in the country, even if none owns 100 percent of either network.