How does MCMC defend the single wholesale network model for 5G?

Question

Accepted Answer

MCMC Defends Single Wholesale Network Model for 5G Deployment

The Malaysian Communications and Multimedia Commission (MCMC) asserts that the Single Wholesale Network (SWN) model is the optimal approach for 5G deployment in Malaysia, countering proposals for a Dual Wholesale Network (DWN). MCMC Chief Operating Officer Datuk Mohd Ali Hanafiah Mohd Yunus argues that a DWN would lead to significant duplication of infrastructure investments and consequently higher wholesale charges for telecommunication companies. He further contends that the SWN model, managed by Digital Nasional Berhad (DNB), is essential for achieving economies of scale in wholesale operations and preventing market imbalance.
Economies of Scale and Market Control

The MCMC's defence of the SWN model hinges on the principle of economies of scale, which are deemed crucial for an efficient wholesale network setup. Segmenting the wholesale market into multiple networks, as proposed by a DWN, is predicted to create imbalances and potentially grant undue control to a single dominant wholesale network. This outcome is precisely what the MCMC aims to avoid, favouring a unified approach managed by DNB to ensure a more equitable market landscape.
Spectrum Efficiency and Quality of Experience

Furthermore, the finite nature of radio spectrum is a key consideration in the MCMC's advocacy for the SWN. By adopting a single network, the spectrum does not need to be divided among multiple service providers. This approach ensures that end-users can expect a consistent quality of experience from the available spectrum, irrespective of their chosen telecommunication provider, subject to individual service terms.
Reducing the Digital Divide and Infrastructure Readiness

The SWN model, specifically through DNB's supply-driven rollout strategy, is also presented as a means to mitigate the digital divide. This approach is expected to yield benefits such as the expansion of fibre networks and the readiness of passive infrastructure. DNB's commitment extends to consulting with licensees to plan its deployment, aiming to serve areas that may not be financially viable but will be prepared for 5G services, a strategy previously proven effective in the government-led High-Speed Broadband (HSBB) deployment.
Network Reliability and Service Continuity

Contrary to claims that a DWN offers superior redundancy, the MCMC maintains that network reliability and security are better managed through robust network design, a requirement imposed on DNB. The commission argues that two independent wholesale networks do not eliminate a single point of failure. Moreover, the current SWN model allows Mobile Network Operators (MNOs) to leverage their existing network cores for service innovation and to roll out their own core networks. This setup also ensures service continuity, as the established 4G network can provide services in the event of an outage on DNB's 5G network, thereby preventing total service disruption.

Reading history

Hide →

This history is cleared when the page is closed.

How does MCMC defend the single wholesale network model for 5G?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends