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Malaysia Targets 80% 5G Coverage by 2026

Malaysia's 5G rollout aims for 80% population coverage by 2026, driven by a dual-network model, impacting businesses and consumers with faster connectivity.

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Malaysia Targets 80% 5G Coverage by 2026 as Dual-Network Model Takes Shape

Malaysia's government announced plans to expand 5G network coverage to 80% of populated areas by the end of 2026, accelerating its digital infrastructure push. The initiative, led by the Malaysian Communications and Multimedia Commission (MCMC), involves a shift to a dual-network model after initial single-wholesale network delays. This move aims to boost competition and investment in the country's telecom sector.

What happened

In early 2024, Malaysia's government approved a dual-network model for 5G rollout, replacing the earlier single-wholesale network approach managed by state-owned Digital Nasional Berhad (DNB). Under the new plan, DNB will continue to operate its existing network, while a second network will be developed by a consortium of private telecom operators, including CelcomDigi, Maxis, and U Mobile. The MCMC targets 80% population coverage by end-2026, with DNB already covering over 70% of populated areas as of late 2023. The transition is expected to be completed by mid-2024, with both networks operational thereafter.

Why it matters

For businesses, the expanded 5G coverage promises faster data speeds and lower latency, enabling advanced applications in manufacturing, logistics, and agriculture. Consumers will benefit from improved mobile internet services and potential cost reductions due to increased competition. The dual-network model also addresses earlier concerns about monopoly pricing and slow rollout, potentially attracting more foreign investment in Malaysia's digital economy. However, the transition may cause temporary service disruptions and require significant capital expenditure from operators.

What's next

Telecom operators are expected to finalize the second network's rollout plans by mid-2024, with commercial services launching in select areas by late 2025. The MCMC will monitor coverage targets and service quality, with potential penalties for non-compliance. Businesses and consumers should prepare for gradual improvements in connectivity, with full 80% coverage likely by 2026. The government also plans to allocate additional spectrum for 5G to support the dual-network model.

Frequently asked

What is the dual-network model for Malaysia's 5G rollout?
The dual-network model involves two separate 5G networks: one operated by state-owned Digital Nasional Berhad (DNB) and another by a consortium of private telecom operators. This replaces the earlier single-wholesale network approach to boost competition.
How will the 5G rollout affect consumers in Malaysia?
Consumers can expect faster mobile internet speeds and potentially lower costs due to competition. However, temporary service disruptions may occur during the transition to the dual-network model.
When will Malaysia achieve 80% 5G coverage?
The government targets 80% population coverage by the end of 2026, with the second network's commercial services starting in select areas by late 2025.