KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
CelcomDigi Bhd CEO Datuk Idham Nawawi has made it clear that the group would rather lead the development of Malaysia’s second 5G network rather than take over the existing one managed by state-owned Digital Nasional Bhd (DNB). This preference comes as Malaysia shifts to a dual network model for 5G deployment, moving away from the current single wholesale network (SWN) operated by DNB.
Idham explained that CelcomDigi’s 18,000 sites have been upgraded to be 5G-ready and could be transformed into a 5G network with relative ease by adding network equipment and performing a software upgrade, provided they are granted access to the 5G spectrum currently controlled by DNB. He indicated that CelcomDigi could complete the upgrade in less than two years.
Why Build Its Own 5G Network?
Idham believes that building CelcomDigi’s own 5G network wouldn’t impact dividend payments and would be less costly than paying for wholesale 5G capacity. The company’s existing infrastructure would allow for a faster rollout, compared to building an entirely new standalone 5G network like DNB’s, which covers 80% of populated areas but comes with higher service quality costs.
Competition for the Second 5G Network
Apart from CelcomDigi, other major players such as Maxis Bhd and U Mobile Sdn Bhd have submitted bids to operate the second 5G network. Analysts expect Maxis to have a good chance of winning, but CelcomDigi remains a strong contender. If CelcomDigi wins, they could build a 5G network at their own pace, focusing on commercially viable areas, unlike DNB, which has obligations to serve rural regions.
The Challenges of Managing Multiple Networks
Idham pointed out that CelcomDigi currently manages a complex network system, including parts of the Celcom and Digi networks, along with DNB’s infrastructure. He argued that managing multiple technologies, especially with different vendors, adds unnecessary complexity. A seamless transition to 5G using its own upgraded infrastructure would provide better connectivity and customer experience.
Risks of Not Winning the Bid
If CelcomDigi does not win the bid for the second 5G network, Idham mentioned that the company has alternative plans, including continuing as an access seeker under DNB’s network. However, he noted that it would be preferable for CelcomDigi to manage its own 5G network for mission-critical applications, such as autonomous driving and microsurgery, which require uninterrupted, high-quality service that 4G cannot support.
Industry Implications
The outcome of the Malaysian Communications and Multimedia Commission's (MCMC) decision on the second 5G network is crucial for the industry. It will determine whether the existing SWN model persists or if a more competitive landscape with two networks emerges. A dual network model could lead to better service quality and technological advancements as companies like CelcomDigi and Maxis compete on 5G offerings.
Conclusion
With the announcement of the second 5G network bid still pending, CelcomDigi is positioning itself as a frontrunner. Whether they win or not, the shift to a dual network could provide clarity and direction for Malaysia’s telecommunications industry, allowing it to move forward from the uncertainties of the past three years under the SWN model.
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