Can 5G internet prices in Malaysia decrease with wider coverage?

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5G Internet Prices May Decrease as Coverage Expands

Deputy Communications and Digital Minister Teo Nie Ching has expressed optimism that the price of 5G high-speed internet in Malaysia could see a reduction as its coverage expands across the nation. Currently, consumers are paying RM1.68 per gigabyte (GB) for 5G services. This price point is significantly higher than the reference access offer price set by Digital Nasional Berhad (DNB), which stands at RM0.13 per GB. The government's perspective is that increased deployment of 5G infrastructure will create conditions for further price reductions for end-users.
Current Consumer and Access Pricing

For consumers, the current cost associated with 5G usage is RM1.68 per gigabyte (GB). This figure contrasts sharply with the wholesale access cost. DNB's reference access offer outlines a price of RM0.13 per GB, equivalent to RM30,000 per gigabits per second (Gbps) per month. This substantial difference between the consumer price and the underlying access cost suggests potential for downward adjustments as market dynamics evolve with wider network availability.
Link Between Coverage Expansion and Price Reduction

The government believes that the expansion of 5G channels is a key factor that will enable a decrease in internet prices. As the network's reach grows, economies of scale are expected to come into play, potentially lowering the operational costs for service providers. This, in turn, could translate into more affordable 5G plans for Malaysian consumers, aligning with the goal of making high-speed internet more accessible.
National and State 5G Rollout Progress

The overall national rollout of 5G coverage has reached 54.7% of populated areas. Within specific regions, progress varies, with Penang currently showing slightly faster deployment at 56.6%. The Malaysian Communications and Multimedia Commission (MCMC) and the Ministry have set an ambitious target of achieving 80% 5G coverage in populated areas, indicating a focused effort to broaden the network's footprint.

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Can 5G internet prices in Malaysia decrease with wider coverage?

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