Transparency Concerns Over 5G Network Selection
PETALING JAYA: Tasek Gelugor MP Wan Saiful Wan Jan has called for the government to provide more details on the selection of U Mobile Sdn Bhd (U Mobile) to develop the country’s second 5G network.
Selection Process Untransparent
Wan Saiful expressed his concerns over the selection process, stating that Communications Minister Fahmi Fadzil’s general answer to the Dewan Rakyat earlier today did not provide sufficient information on why the criteria for selecting the network operator had not been disclosed earlier. "This has made the selection process non-transparent, leading to various worrying speculation," he said in a statement.
U Mobile’s Shareholding
Wan Saiful also raised the issue of U Mobile’s shareholding, with the majority being held by Singaporean firm Straits Mobile Investments Pte Ltd. U Mobile plans to reduce its foreign ownership to 20%. "This means that the ‘divestment’ to reduce foreign ownership to 20% will allow the ‘super-rich’ from Singapore to make huge profits as the value of their shares will certainly be much higher than their initial investment," he said.
DNB’s Board Representative
Wan Saiful questioned why U Mobile’s representative on the board of Digital Nasional Bhd (DNB) was not immediately asked to resign given their position as a competitor. "As a director, if this individual has access to sensitive internal information and strategies of DNB, it’s clear that the private company, U Mobile, will have an advantage in competing against DNB," he said.
Government’s Role
The government agreed to allow a second 5G network after shares in the state-owned DNB were sold to Maxis, CelcomDigi, U Mobile, and YTL Communications, with Telekom Malaysia awaiting shareholder approval for the deal. The government retains a 30% stake and a special share in DNB for a designated period.
Competitive Advantage
Wan Saiful expressed concerns over the competitive advantage given to U Mobile, stating, "However, DNB does not have access to U Mobile’s internal strategies, making the playing field uneven. Why is the government giving an advantage to a competitor, the majority of which is owned by a Singaporean company, while a Malaysian GLC like DNB is forced to compete on an uneven playing field?"
FAQs
Q: What is the concern about the selection process?
A: The concern is that the selection process is non-transparent, leading to various worrying speculation.
Q: What is the issue with U Mobile’s shareholding?
A: The majority of U Mobile’s shareholding is held by Singaporean firm Straits Mobile Investments Pte Ltd, and its plans to reduce foreign ownership to 20% will allow the ‘super-rich’ from Singapore to make huge profits.
Q: Why is the government giving an advantage to a competitor?
A: The government is giving an advantage to a competitor, the majority of which is owned by a Singaporean company, while a Malaysian GLC like DNB is forced to compete on an uneven playing field.
Conclusion
The selection of U Mobile to develop the country’s second 5G network raises concerns over transparency and competitive advantage. The government must provide more details on the selection process and ensure a level playing field for all competitors.