KUALA LUMPUR: EA Holdings Bhd (EAH) today signed a non-binding memorandum of understanding (MoU) with Third Telecom Sdn Bhd (TTSB) to collaborate for the design, provision and distribution of broadband access connectivity solutions, services and equipment utilising the newly launched 5G technology in Malaysia.
TTSB is currently vying to be amongst the first mobile virtual network operators (MVNO) to provide 5G broadband solutions and services to the markets.
The company will primarily be operating as an MVNO, leveraging the 5G framework and access built and provided by Digital Nasional Bhd (DNB).
TTSB chief executive officer Aminuddin Abu Khalid said there are very good synergies between TTSB and EAH.
"EAH has been around for more than ten years, and they are very experienced in system implementations, software and application designs, and these are some of the crucial skillsets that TTSB needs urgently to launch our MVNO plans.
"EAH's broad networks of established clients are a bonus too," Aminuddin said in a statement today.
EAH chief executive officer Mohammad Sobri Saad together with TTSB, EAH wants to be the prime MVNO offering innovative services and solutions using the 5G technology to its customers.
"Our primary target markets would be the MNCs, enterprises and industries," he said.
DNB, wholly owned by the Minister of Finance (Incorporated), was mandated by the government to be the single neutral party to undertake the deployment of 5G infrastructure and network nationwide and is licensed to provide wholesale 5G coverage and capacity to other licence holders.
DNB is expected to roll out 500 5G sites in Putrajaya, Cyberjaya and Kuala Lumpur by the end of this month, effectively covering 10 per cent of the populated area.
This will increase to 4,018 sites or 40 per cent of populated areas and covering all major towns by 2022, and reach 80 per cent of the populated areas by 2024 with 7,509 sites.
From 2025-2030, is it expected that the 5G network will cover more than 90 per cent of the populated areas with at least 10,167 sites.
By then, most of the 4G and non-5G sites would be redundant, similar to the 3G sites, which would be non-operational after 31 December 2021.
Aminuddin said, unlike the traditional telco framework, which required billions of ringgit of outlays for infrastructure, the 5G infrastructure will be built and maintained by DNB, who will charge other mobile network operators (MNOs) and MVNOs for access to the 5G framework.
"This 5G initiative by the government will enable MNVOs like us to get involved in helping our country to transit quickly into the new era as we can help by offering new and innovative products and solutions to both local and international markets as well.
"This is a real game-changer for the telco industry, and we need to act quickly to take advantage of this new opportunity.
"We believe this will greatly enhance and speed up the National Digital Economy plans as set forth by the government."
Mohammad Sobri said there is a vast potential of 5G adoption and together with TTSB.
"We are strategically positioning ourselves to be one of the enablers to bring 5G connectivity to the markets.
"Revenue and profits aside, this collaboration is also about national duty as Malaysia has been lagging in 5G adoption compared to other countries like China, South Korea, the US and even the Philippines," he said.
