The latest policy shake-up by Anwar's administration aimed at dismantling monopolies and promoting competition.
Malaysia's 5G roll-out by state agency Digital Nasional Berhad has seen repeated delays since its launch in December 2021 because of industry concerns over pricing and transparency, as well as worries that a single government-run network would result in a nationalised monopoly.
A recommendation by major carriers for a second 5G provider was rejected by the previous government in March last year. DNB deployed its network in late 2021 with the participation of two telecommunications firms on a trial basis. The plan for a second network will be contingent on DNB and mobile operators ensuring that 5G network coverage reaches the government's target of 80% of the country's populated areas by the end of this year, the sources said.
DNB and a fifth firm, CelcomDigi, declined to comment. CelcomDigi directed further queries to the government. It was not clear how the proposal for a second 5G network would affect DNB's existing agreements with its development partner Swedish telecoms giant Ericsson, and other mobile operators.
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