Malaysia eyes satellite-based Internet services by 2025

Malaysian telco operators are expected to provide satellite-based Internet services directly to mobile devices by 2025, presenting an alternative connectivity option to remote areas of the country that remain digitally isolated.

Speaking to local media, Fahmi Fadzil, Malaysia's minister of Communications and Digital, said today that the government is currently looking into technologies that allow access to direct lines from satellites.

"It means that in a remote area where there is no line at all, if the telco provides satellite service to the device, then we will have Internet wherever we are," he said.

Fadzil pointed out that with 2.7% of areas still needing basic 4G in the country. The Ministry of Communications and Digital (KKD) hopes satellite technology will help alleviate the connectivity issue.

"This will take time... the research is going on, hopefully this will be the focus of KKD in the future," he said, adding that he hoped satellite-based Internet services will be available by 2025.

Malaysian operators signed 70% equity with DNB

Meanwhile, Malaysia's five telco operators have finally signed an equity stake deal with the state-run 5G wholesale provider Digital Nasional Berhad (DNB), collectively acquiring a 70% ownership with the country's Ministry of Finance holding the remaining 30%.

Related:Malaysia 5G controversy flares again over PM's Huawei remarks

Telekom Malaysia, Maxis, U Mobile, YTL and CelcomDigi (via Infranation) last Friday signed their respective share subscription agreement (SSA), agreeing to each take a 14% stake in the DNB. The SSA stipulates that each operator will invest MYR233 million (US$50 million) – a total of MYR1.16 billion ($248. 5 million) – which will be used for DNB's funding requirements.

The operators agreed to take an undisclosed stake in July, but delays hampered the drafting of the SSA as parties involved combed through the fine print of the complex agreement. 

With the SSA finalized, the path is now open for setting up a second 5G operator in Malaysia to compete with DNB once its 5G network covers 80% of populated areas.

DNB's network coverage is currently 73%, with the actual number of 5G subscribers reported  at 3.6 million at the end of October 2023, which accounts for 10.8% market penetration.