Plum Consultancy Disproves EMIR Research's Criticisms about DNB's 5G SWN Rollout Plan in Malaysia

The Koala Lumpur-based EMIR had originally proposed that DNB's 5G SWN be deserted and 5G spectrum be reassigned to the six Malaysian mobile drivers for them to develop specific 5G networks. DNB ought to then be repurposed to build easy infrastructure (such as towers as well as fiber transmission links) in the rural areas, allowing mobile operators to utilize this infrastructure to boost rural broadband by developing out their 4G networks.

In a detailed feedback, Plum has actually baldly specified in its report that EMIR has actually shown that it does not comprehend exactly how the SWN works, and says that EMIR's proposal would certainly cause wholesale costs that are 4 to 5 times higher than those of the SWN.

[Ed: Viewers can download the full, 4,700 word rebuttals by Plum Working as a consultant here.] In certain, Plum estimates that moving from 4G to 5G utilizing the SWN model decreases wholesale expenses per GB of mobile information by around 85% (based on the prices in DNB's referral accessibility deal as well as MCM Cs estimates of the expense of increasing 4G ability).

Digital National Bhd-hired telco consultants, Plum Consultancy from the UK, has actually diligently contested objections that DNB's present 5G single wholesale network (SWN) rollout in Malaysia will certainly cause mobile drivers being unable to compete in regard to service technology.

The consultancy was replying to opinions made by EMIR Research, an independent think-tank focused on strategic plan recommendations, whose current head of state and CEO is Dr. Rail Hussein Mohamed Riff (pic), the previous chairman of DEC and an experienced business owner that has actually run a broadband firm also in the mid 2000s.

Read Additionally: Approximating the economic influence of the Single Wholesale 5G Network in Malaysia

SWN will certainly lead to reduced broadband rates for consumers

On top of that, Plum argues that the wholesale-only design being made use of by DNB will certainly lead to lower broadband costs for consumers, as it will enable the company to provide reduced costs to mobile drivers who will then hand down these financial savings to their customers.

In specific, Plum states that the presumption that there is RAN (Radio Gain access to Network) sharing under the SWN which protects against network service advancement by private mobile operators remains in reality a misunderstanding by EMIR. At the same time, Plum notes that while an SWN could lead to weak competitors at the infrastructure degree, framework competition would be difficult to accomplish if the 5G networks were run by consortia of competing mobile operators.

Plum also resolves EMIR's worries about the cost performance of the 5G rollout strategy, and also maintains that the SWN model is the most affordable option. The working as a consultant notes that the Spectrum Accessibility Fee (CAVITY), which is a crucial component of the 5G rollout strategy, has actually been set at a degree that approaches Sacs in other countries and also that the 5G frequency bands being utilized in Malaysia are amongst one of the most economical worldwide.

5G services should not be limited to high-density locations

The working as a consultant says that 5G solutions ought to not be restricted to high-density areas and expert applications, but instead takes the sight that the major need for 5G will come from development in mobile information solutions and also fixed cordless accessibility services.

Plum suggests that the government's contribution to the USO will certainly be moderate, as the majority of financing will certainly come from DNB's operations, as well as ends that the 5G rollout strategy being led by DNB is one of the most cost-efficient and efficient alternative for Malaysia which will ultimately result in lower broadband costs for customers.

Ed Note: EMIR has released its own lengthy counter to the counter factors raised by Plum Working as a consultant over and which have been lugged by some media outlets. We will include a web link to this, tomorrow, Dec 31, for the advantage of readers who wish to follow carefully, this problem of whether a SWN network is certainly the most functional approach for Malaysia-or not.

Dealing with EMIR's issues about the global service responsibility (USO) under the 5G rollout strategy, Plum suggests that the USO, which is made to make certain that all Malaysians have accessibility to trustworthy and also inexpensive communication solutions, will certainly be adequately moneyed under the existing strategy.

Plum recognizes EMIR's contention that the high quality as well as coverage of broadband services in Malaysia's backwoods is poor and looking for renovation, but competes that dealing with the problem ought to not come with the expenditure of delaying the rollout of 5G in country and also urban locations, while mentioning that Malaysia drags lots of other nations in regard to 5G rollout.