SWN approach can pose risks to Malaysia's 5G roadmap, says EIU

Malaysia has opted for a single wholesale network (SWN) for 5G as opposed to the more popular licensing-framework strategy.

"This means that the country's telecoms operators will not be able to purchase spectrum bands, which will instead be owned by a government entity.

"Historically, SWNs have led to delayed launches, low customer adoption and financial losses for the public entity that owns the network. Such challenges pose significant risks to the country's 5G roadmap," EIU said in its Telecoms and Technology in 2022 report today.

EIU expects 16 out of 60 major telecoms markets globally, including Malaysia, to launch 5G services next year but challenges in spectrum availability, pricing and allocation would cause delays in many markets.

It also said semiconductors would be a strategic priority for governments in 2022, as the shortage would continue into the latter half of the year, further fuelling geopolitical tensions.

"Governments will aim to bring production facilities for industries such as automotive, for which the shortage has had a particularly damaging impact, closer to the location of final assembly," it said.

Meanwhile, the governments would tighten regulations to boost cyber security, which would be the main short-term risk to digitalisation progress, but discrepancies between countries would often dilute the impact, it added.