5G network
People visit Tencent's booth at the World 5G Exhibition in Beijing, China November 22, 2019. (Photo: REUTERS/Jason Lee)

Malaysia has been reported to be following the same business strategy of China in offering 5G networks to its local carriers. The said strategy involved the reduction of investments for speedier wireless services. The Malaysian government was revealed to forego revenue from spectrum auctions.

Malaysian Communications and Multimedia Commission (MCMC) chairman Al-Ishsal Ishak announced that Malaysia would waive revenue from spectrum auctions thereby allocating airwaves to a consortium of 5g network carriers. Instead of holding auctions, the Malaysian government would tender the consortium by April of 2020, reported Business Times.

A-Ishsal claimed that the business strategy of incorporating 5G networks in Malaysia would involve the imposition of cheaper airwaves policies. He suggested that this would allow investors to increase their funds in 5G infrastructures. He cited companies such as Maxis Bhd and the Axiata Group Bhd that might follow the scheme.

He added that the cost of establishing 5G networks could cost around 2.3 billion USD over the next five years. He then hinted that easing the policies would promote greater investments into this sector, a recognized high potential market for Malaysia in 2020.

The report further explained that the policy would improve the market competition of players such as Axiata, Telekom Malaysia Bhd, Maxis, and Digi.com. It was revealed that these entities have been eyeing on the application for licenses to operate in Malaysia with a 5G network.

Axiata unit Celcom Axiata Bhd has been expecting the 5G services as a means for the Malaysian tech industry to properly allocate the cost associated with building the networks and increase companies' likelihood of winning bids for the solo consortium license. The 5G services were forecasted to serve about 32 million people in the country.

In other news, Yahoo! Finance reported that the first 5G International Conference was held in Langkawi, Malaysia where industry leaders discussed their desired prospects for providing a 5G network in Malaysia and globally.

The report claimed that the country would lodge about 3.12 million to its Gross Domestic Product (GDP) by 2025 after providing the 5G networks. The experts forecasted that the establishment of the service would create 39,000 and significantly add to the country's GDP growth.

MCMC also demonstrated 72 use cases of nine industry verticals at 56 live states. The said service was forecasted to cost 35.16 million from industry players.

The conference also discussed the 5G potentials. The sustainable development goals were also discussed along with the digital inclusivity and the global roadmap of a 5G network in technology industries.