From World-Class to Overloaded: The Troubling Decline of Malaysia’s 5G Promise
What was once celebrated as a revolutionary approach to nationwide 5G deployment is now showing signs of critical stress. Malaysia’s ambitious single wholesale network (SWN) model, operated by Digital Nasional Berhad (DNB), initially delivered some of the world’s fastest 5G speeds. However, as user adoption surges, the very infrastructure designed for equitable access is buckling under the weight of its own success, raising serious questions about the model’s long-term viability and Malaysia’s digital future.
The Grand Experiment: Why Malaysia Chose a Single Wholesale Network
Malaysia’s choice of a single wholesale network broke from the global norm of auctioning spectrum to competing telcos. The government established DNB to build one shared infrastructure, aiming to prevent costly duplication, accelerate rural rollout, and ensure fair access. While this model was designed as a great equalizer, it also created a single point of failure, a risk that is now a stark reality as the network strains.
Cracks in the Foundation: Unpacking the Network’s Performance Collapse
A Dramatic Plunge: The Hard Data Behind the Speed Degradation
The hard data reveals a dramatic performance collapse. After peaking at a world-class 452 Mbit/s in late 2023, the median 5G download speed has plummeted by nearly half to just 243 Mbit/s. Upload speeds have followed, falling from 50 Mbit/s to 30 Mbit/s. This decline contrasts sharply with regional neighbors like South Korea and Singapore, whose competitive markets maintain stable performance, highlighting how a single network struggles to handle mass adoption.
The Monopoly Bottleneck: How a Single Provider Model Became the Single Point of Failure
The SWN model is the primary culprit, creating a monopoly bottleneck. Funneling all 5G traffic through one infrastructure makes it inherently vulnerable to congestion as user numbers grow. The introduction of a second network operated by U Mobile has failed to provide relief. The transition is slow, with U Mobile still routing 83% of its Klang Valley traffic through the strained DNB network. Its standalone network offers no immediate solution, with significant coverage not expected until late 2026.
The Coverage Paradox: Why 5G Phones Can’t Find a 5G Signal
A significant paradox further compounds the issue. While 80% of mobile devices in Malaysia are 5G-capable, they spend a staggering 66% of their time on older 4G networks. This is not a user choice but a network failure. Poor 5G coverage, especially indoors and in rural areas, means the network’s footprint is insufficient to provide consistent connectivity. For many, the promise of 5G remains inaccessible despite having a compatible device.
A Fork in the Road: The Uncertain Future of Malaysia’s Digital Ambitions
This performance slide puts Malaysia at a critical juncture, threatening its digital leadership ambitions. The official path forward is a transition to a dual wholesale network (DWN), but building a second, independent infrastructure is a monumental and lengthy task. This transition period risks further service degradation. The key challenge lies in attracting the massive investment needed while ensuring the new model fosters genuine competition rather than a simple duopoly.
Navigating the Strain: Key Takeaways and Strategic Imperatives
The key takeaways are clear: the SWN model cannot handle mass adoption, the DWN shift is no quick fix, and coverage gaps are a critical barrier. The imperative for policymakers is to accelerate the transition to a competitive environment, with regulations that incentivize urgent investment in both network capacity and coverage. For consumers and businesses, the reality is that the 5G experience will likely remain inconsistent in the short to medium term.
Beyond Speed: Redefining Malaysia’s Path to a Resilient 5G Future
Malaysia’s 5G journey is a powerful lesson on the limits of a centralized model. Declining speeds and coverage gaps threaten the nation’s digital competitiveness. The challenge is no longer a fast rollout but building a resilient and sustainable ecosystem. To secure its future, Malaysia must pivot from its single point of failure and embrace the adaptive capacity that only true market competition can provide.
