PETALING JAYA: Digital Nasional Bhd (DNB) said it will begin commercial negotiations with telcos and expects agreements to be signed after the publication of the reference access offer (RAO).

       It also believes the cost per GB of 5G from DNB which has been communicated to the telcos is significantly lower than the cost to generate on their own network, contrary to a media report that suggested the cost of 5G to the mobile network operators (MNOs) will be higher than the cost these telcos can generate on their own.

       DNB said the incremental or marginal cost per GB of 4G of the telcos currently is at least RM0.50.

       It believes the cost per GB of 5G from DNB which has been communicated to the telcos is significantly lower than the cost to generate on their own networks.

       “The logic for lower costs with a single shared infrastructure is simple.

       “Everywhere in the world, highways are built and shared for drivers of all makes of cars. Imagine the costs if each make of car were to build their own highways for exclusive use,’’ it said.

       On the agreements, DNB acknowledged that it had not signed any agreements with any operator.

       “We will only be able to sign up the telcos after the publication of the RAO. It is thus clear that DNB has not sought any sign-up and neither expects the MNOs to sign anything until after the RAO is published,” it said.

       The RAO has to be published in accordance with the Mandatory Standards of Access.

       DNB said it has drafted an RAO for 5G wholesale services and shared it with the industry regulator, the Malaysian Communications and Multimedia Commission (MCMC), and key industry players in September to enable them to provide their feedback.

       “DNB has since then been in discussions with MCMC and the telcos to align the final terms and conditions,” it said.

       DNB said the RAO will form the basis for DNB to enter into commercial agreements with Licensees who are Access Seekers once this feedback has been received and evaluated. It anticipates finalising its RAO by end-November upon MCMC’s approval.

       Two days ago, DNB said it had conducted a successful trial integration of five telco core networks with its 5G Radio Access Network or RAN.

       It also refuted that telcos will become less profitable if they must buy from DNB and it could affect their stock prices and market capitalisation.

       “There is every reason that the lower cost of 5G services from DNB should lead to higher net earnings, and therefore, logically, translate to higher stock prices of these telcos,” DNB said.