Internet prices are cheaper with the expansion of 5G network coverage
KUALA LUMPUR: The move to expand 5G network coverage announced by the government in Budget 2023 is capable of further lowering the Internet prices offered to users at this time.
Deputy Minister of Communications and Digital (KKD) Teo Nie Ching said this is because Digital Nasional Berhad (DNB) as the body responsible for the development of the network has offered 5G services for RM0.13 sen per gigabit, through a referral access offer.
According to her, the price offered is lower than the current cost of 5G services which is RM1.68 sen per gigabyte.
“So we really believe that with the (step) of 5G network coverage being expanded further, our Internet prices can be lowered further,” she said during an oral question-and-answer session at the Dewan Rakyat today.
Teo said that currently the implementation level of 5G services is 54.7 percent and KKD is confident of reaching the target of 80 percent coverage for populated areas such as Cameron Highlands (Pahang) and Sibu (Sarawak) by the end of this year.
She said the government will also ensure that the cost of implementing 5G services will remain at RM16.5 billion to enable users to enjoy the Internet at a reasonable price.
To answer an additional question from Rushdan Rusmi (PN-Padang Besar) whether DNB will continue to be owned by the Ministry of Finance or be authorized to another telecommunications company (telco), Teo said discussions on this have been initiated so that telco companies also have share distribution in DNB.
“But so far the agreement (discussion) has not been finalized yet and indeed we (KKD) together with the telco company are in the middle of dealings, because the telco company has some questions if they acquire DNB shares, what are their rights as shareholders?
“So there are details that need to be refined before the telco company makes a final decision,” she said.
While responding to Lim’s original question asking KKD to state the cost and quality of 5G services offered by the company to users and efforts to reduce it further until it is the lowest in ASEAN, Teo said the prices offered by service providers are determined by market forces.
According to her, if the market fails to function efficiently, then the Malaysian Communications and Multimedia Commission (SKMM) can intervene in setting prices.
“Nevertheless, MCMC regulates access prices at the wholesale level through the legal instrument of the Commission’s Determination of Mandatory Standard on Access Pricing with permission, Mandatory Standard on Access Pricing (MSAP) and studies on this access price are done periodically.
“Through regulation at the wholesale level, it can indirectly reduce prices at the retail level, to consumers to a more competitive level,” she said.
She said 5G services have just been offered in Malaysia and for now, service providers are adopting a neutral technology concept in pricing with no difference between 5G and 4G services.
