The Malaysian Communications and Multimedia Commission (MCMC) has been asked to cancel the 5G spectrum bands awarded to five telecom players without open tender.
Communications and Multimedia Minister Datuk Seri Saifuddin Abdullah today said “18 instruments, including the use of the spectrum on the bandwidths of 700MHz, 900MHz and 2600MHz”, had been presented to me.
“Based on technical and legal issues, as well as the need to be more transparent, I have ordered the MCMC chairman to cancel the ministerial order and review the instruments as soon as possible,” Saifuddin said in a statement.
He added that the government through the ministry was committed to giving the best service in technology and telecommunications, thus achieving a high-speed internet access and ICT facilities.
The statement was issued after reports of the 5G spectrum being awarded without an open tender went viral.
The ministry reportedly had assigned the 700MHz spectrum bands to Celcom Axiata Bhd, Digi.Com Bhd, Maxis Bhd, Telekom Malaysia Bhd and Altel.
Saifuddin is facing mounting allegations of cronyism over how the spectrum width for 5G internet was carved out and awarded to five telecommunication service providers that critics said lacked transparency.
A letter detailing his directive for the MCMC to distribute the spectrum band to the companies has prompted accusations of foul play.
It is unclear from the minister’s statement if the move to call off the order suggests he had changed his mind, disagreed with or was not party to the decision.
Previously, it was reported that the 700MHz spectrum, along with 3.5GHz and 2628GHz, were identified as the pioneer bands for the implementation of 5G networks in Malaysia.
In January this year, the ministry had issued a final report mentioning that the 700MHz and 3.5GHz bands would not be allocated to individual licensees.
Analysts are doubtful on the demand for 5G networks as Malaysia will first need to develop an ecosystem with advanced industries like artificial intelligence, driverless cars and Internet of Things.
Meanwhile, Saifuddin’s predecessor, Gobind Singh Deo, said the Perikatan Nasional government’s allocation of the 700 MHz spectrum bands through ministerial order contrasted with the open tender process preferred by the previous administration.
“This is a matter of great concern which calls for an urgent explanation.
“The Pakatan Harapan government was not inclined to award the spectrum bands by way of ministerial order.
“We chose to adopt an approach with greater transparency and accountability (and) initiated a process to award the 700 MHz that began with a public inquiry (by MCMC) in July 2019.
“The findings specifically stated that the 700MHz bands would be assigned through a tender process,” Gobind said in a statement today.
He said the open tender process would have identified the licencees with the best business plan and best track record for the awards.
Earlier today, Lembah Pantai MP Fahmi Fadzil said that the ministerial directive for the MCMC to allocate five firms with spectrum band for mobile internet services without tender, violated the ideals of transparent governance.
He called Saifuddin’s directive shocking, saying it begged the question of how the firms were selected for the allocations.