MCMC clarifies purpose of government special purpose vehicle in 5G deployment

 

MCMC says telcos will have an open, fair and equal access to the new 5G network.

KUALA LUMPUR: The Malaysian Communications and Multimedia Commission (MCMC) has further clarified and reiterated the information shared at the recent analyst briefing with regard to the purpose of the government’s Special Purpose Vehicle (SPV) for 5G which will be regulated by the commission.

In a statement today, MCMC said it is focused on encouraging investments in the right areas, such as services that were innovative and can be truly game-changing for consumers, enterprises and the country in general while ensuring that the digital divide is kept to a minimum.

“In such an effort, a dedicated SPV regulated by MCMC will provide focus in rolling out the 5G network and this is key so that existing service providers can continue to roll out fibre as well as improve 4G coverage and quality.

“The burden of 5G will not be on the service providers while still ensuring that the digital divide risk is being kept at a minimum throughout the implementation of the 5G network via the rollout of fibre and 4G network,” it said, adding that there would be private sector involvement.

MCMC said the spectrum is provided to the SPV to build the network and offer capacity via wholesale, while the non-auction model adopted was part of the effort to not burden cost on a new network, in addition to ensuring that readily available network elements will be used and not laid new.

“The SPV will be offering services via wholesale that is transparent and regulated.

“Hence, the service providers offering retail services will have an open, fair and equal access to the new network, which will be a strong indication towards reducing infrastructure-based competition,” it said.

It said the retail service providers can invest in more innovative services that will help them generate better income while end-users are able to use the new services to generate more in the digital-related economy. - FMT

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