Malaysia U-turns on 5G permits for local companies after backlash over lack of tender
- In mid-May, the government quietly and without fanfare awarded the usage of 5G airwaves to five local players, bypassing a previously promised tender
- Before Wednesday’s about-face, Malaysia’s Axiata had said it would select two equipment providers, breaking China’s Huawei’s hold on the industry
The government in mid-May had quietly and without public fanfare awarded the usage of 5G spectrum in the 700MHz, 900 MHz, and 2,600 MHz frequencies to five companies including Altel Communications, which is owned by politically connected tycoon Syed Moktar Al-Bukhary. Authorities had previously said the 700 MHz, 3,600MHz, and 2600/2800MHz frequencies would be used for 5G purposes.
The move bypassed previously promised tender processes and earned the ire of opposition politicians from the Pakatan Harapan coalition when reports about it emerged earlier this week.
The initial order dated May 15 was signed by the Communications Minister Saifuddin Abdullah, with a soft copy uploaded on the website of the Malaysian Communications and Multimedia Commission (MCMC). It was not publicised.
The 5G roll-out – part of the nation’s National Fiberisation and Connectivity Plan – was put in place by Pakatan Harapan while it was in government from May 2018 to February this year. Perikatan Nasional, the new ruling coalition that came to power following March’s coup, had promised to continue the project.