Malaysia’s ambitious journey into the 5G era, once celebrated for its world-leading speeds and rapid deployment, has entered a challenging new phase where the very success of its unique single wholesale network is now contributing to a noticeable decline in performance. The initial strategy of a government-led infrastructure rollout delivered impressive results, but as millions of users have embraced the technology, the network is beginning to show signs of strain. This has prompted a significant strategic pivot toward a competitive dual-network model, a move designed to build resilience, foster innovation, and ultimately deliver a more consistent high-speed experience to a public that has eagerly adopted 5G-capable devices. The nation now finds itself navigating the complex transition from a monopolistic framework to a competitive market, balancing the need to support the incumbent network while nurturing a new entrant. This shift reflects a broader trend seen globally, where the theoretical efficiency of a single network clashes with the practical demands of ever-increasing data consumption and user expectations for seamless, ultra-fast connectivity everywhere, from dense urban centers to remote rural communities.
The Single Network’s Journey From Triumph to Strain
Initial Success and Global Recognition
Malaysia’s approach to 5G was a deliberate departure from the norm, centering on a single wholesale network (SWN) model managed by a government-owned entity, Digital Nasional Berhad (DNB). This Multi-Operator Core Network (MOCN) strategy was engineered to eliminate redundant infrastructure investment and accelerate nationwide coverage by having all mobile network operators (MNOs) share a single, robust 5G infrastructure. The primary goal was to ensure equitable access and rapid deployment across the country, preventing a scenario where competition would lead to fragmented coverage concentrated only in profitable urban areas. This bold experiment paid dividends in its initial stages, positioning Malaysia as a global leader in 5G performance. By the third quarter of 2023, the country proudly ranked third in the world for median 5G download speed, a remarkable achievement that validated the SWN model’s capacity to deliver a world-class network quickly and efficiently. This early success showcased the potential of a centralized deployment to overcome the typical hurdles of a new technology rollout.
The framework’s design was both its greatest strength and its eventual point of strain. By providing a common platform, DNB enabled all MNOs to launch 5G services for their customers almost simultaneously, creating a level playing field and driving rapid consumer adoption. Consumers benefited from the swift availability of 5G without having to wait for their specific provider to build out a proprietary network. This centralized approach streamlined the complex process of site acquisition and equipment deployment, allowing DNB to focus exclusively on building a high-quality 5G network at an unprecedented pace. The initial focus on high-traffic, densely populated urban centers ensured that a large portion of the population could experience the transformative speeds of 5G early on. However, this model inherently concentrated all network traffic onto a single set of resources. While highly efficient for a nascent network with a limited user base, it also created a single point of potential congestion as the number of subscribers and their data demands grew exponentially, setting the stage for the performance challenges that would later emerge.
The Inevitable Slowdown
The period of exceptional performance has since given way to a sustained and significant decline, a trend directly linked to the network’s successful expansion and maturation. Analysis of network data reveals a stark drop in speeds between the fourth quarter of 2023 and the third quarter of 2025. During this time, the nationwide median 5G download speed plummeted from a formidable 451.79 Mbps to 242.92 Mbps. A similar trend was observed in upload performance, with the median speed falling from 49.87 Mbps to 29.52 Mbps. This degradation is not a sign of network failure but rather a natural consequence of its growing pains. As DNB successfully transitioned its focus from deploying infrastructure in concentrated urban zones to achieving its broader mandate of covering 80% of populated areas, the user base expanded dramatically. This surge in 5G device adoption and the corresponding increase in data consumption placed immense pressure on the single network’s finite capacity, leading to congestion and a noticeable reduction in speeds for all users sharing the infrastructure.
This trajectory becomes particularly insightful when viewed in a regional context. Mature 5G markets with multiple competing operators, such as South Korea, have managed to maintain consistently high median download speeds, often exceeding 528 Mbps, demonstrating the capacity benefits of a competitive infrastructure landscape. Singapore has also shown stable performance, with speeds around 349.19 Mbps. While some newer 5G markets in the region have posted impressive initial speeds, this is often a temporary phenomenon before widespread user adoption introduces congestion. Despite its decline, Malaysia’s Q3 2025 speed of 242.92 Mbps remains robust and competitive, surpassing the performance of several other markets in the region, including the Philippines (120.16 Mbps), Japan (124.11 Mbps), and Thailand (169.35 Mbps). This indicates that while the single network model is facing capacity challenges, its foundational infrastructure remains strong, though clearly in need of augmentation to meet future demand.
The User Experience Paradox
High Adoption Low Connection
There is unequivocal evidence that Malaysian consumers have enthusiastically embraced the promise of 5G. Market data reveals a steep upward trend in the adoption of 5G-capable devices, with the proportion of performance tests conducted on such hardware surging from 58.6% in the fourth quarter of 2023 to an impressive 79.5% by the third quarter of 2025. This rapid uptake demonstrates a strong market readiness and a clear consumer appetite for faster, more responsive mobile connectivity. More critically, the data also shows a corresponding increase in active 5G usage. The percentage of tests conducted while actively connected to a 5G network grew from 35.4% to 55.0% over the same period. This indicates not only that consumers are buying the right devices but also that an expanding subscriber base is actively seeking out and utilizing the 5G network where it is available, solidifying the demand for the next generation of wireless technology.
This strong consumer momentum, however, has created a significant paradox in the user experience. Despite the high penetration of 5G-enabled smartphones, users are spending a disproportionate amount of their time connected to the older, slower 4G LTE network. Data from the third quarter of 2025 paints a clear picture of this disconnect: 5G-capable devices spent a staggering 65.8% of their connected time on 4G networks. In stark contrast, they were connected to the superior 5G network for only 29.8% of the time. This “4G fallback” issue represents a major gap between the potential of the technology in consumers’ hands and the reality of the network’s current reach. For the average user, this translates into a frustratingly inconsistent experience, where the promised lightning-fast speeds of 5G are only available intermittently, undermining the value proposition of their advanced devices and premium data plans.
Uncovering the Reasons for 4G Fallback
A primary contributor to this persistent reliance on 4G is the challenge of providing comprehensive indoor 5G coverage. 5G technology, especially on the mid-band frequencies used for high capacity, struggles with signal penetration through physical barriers like walls, concrete, and even certain types of glass. This is a critical weakness, as industry estimates suggest that between 70% and 80% of all mobile data is consumed indoors—in homes, offices, shopping malls, and other buildings. When a user moves indoors, their 5G-capable device often loses the high-frequency signal and automatically falls back to the more resilient, lower-frequency 4G network. Recognizing this limitation, DNB has been actively deploying 5G In-Building Solutions (IBS) to enhance indoor coverage at high-traffic locations. As of January 2025, 73 strategic sites, including major airports, hospitals, and convention centers, have been equipped with IBS, but a much wider rollout is needed to meaningfully address the nationwide indoor coverage gap.
The second major factor driving 4G fallback is the uneven distribution of 5G infrastructure, particularly in non-urban areas. While DNB successfully met its national mandate of reaching 80% coverage of populated areas (COPA), this top-level metric can often obscure significant regional disparities. In many of Malaysia’s rural states, 5G deployment has been heavily concentrated in state capitals and major towns, where the population density provides a stronger business case for investment. Outside of these primary hubs, the density of 5G cell sites drops off considerably. As users travel beyond these well-covered zones, their devices are forced to revert to the more ubiquitous 4G network, which has had years to establish a near-universal footprint. This creates a digital divide not just between urban and rural areas, but also within states themselves, contributing significantly to the high percentage of time that even the most advanced devices spend on older technology.
The Path Forward a Dual Network Future
A Strategic Shift to Competition
In direct response to the mounting capacity constraints and the persistent 4G fallback issue, the Malaysian government has initiated a strategic pivot away from the single wholesale network toward a competitive Dual Network (DN) model. This fundamental policy shift was officially triggered after DNB successfully achieved its target of covering 80% of populated areas at the end of December 2023, fulfilling its initial mandate. The move signals a transition from a government-led monopoly, designed for rapid initial deployment, to a more market-driven framework. The introduction of a second, competing 5G network is intended to foster innovation, improve network resilience, and apply competitive pressure that will ultimately drive all operators to enhance service quality, expand coverage more aggressively, and offer more compelling value to consumers. This evolution acknowledges that while the SWN was effective for building the foundational layer of 5G, a competitive environment is now necessary to meet the long-term demands of a mature digital economy.
The transition introduces a second major player into the infrastructure landscape, fundamentally altering the market dynamics. In November 2024, U Mobile, the nation’s third-largest operator, was selected to build and operate this second 5G network. The company began its rollout in March 2025, choosing to deploy a network based on the more advanced 5G Standalone (SA) architecture. U Mobile has set aggressive targets for itself, aiming to achieve 80% COPA within its first year of operation and an ambitious 95% by its third year. This ambitious plan, however, brings with it a host of new complexities that must be carefully managed by regulators and industry stakeholders. Key challenges include the fair and efficient allocation of valuable 5G spectrum, ensuring the continued financial sustainability of the incumbent DNB network during the transition, and establishing a robust framework for coordinating the operations of two parallel national 5G networks to ensure seamless interoperability and a consistent user experience.
Reality on the Ground
To assess the practical, on-the-ground progress of this transition, a controlled network testing exercise was conducted in the populous Klang Valley in October 2025. The test was designed to provide a real-world comparison of the network footprint of the emerging second network operated by U Mobile against the established, mature network of the incumbent, DNB. For the purposes of the study, Yes, an operator that exclusively utilizes DNB’s infrastructure for its 5G service, served as a proxy to accurately map DNB’s existing coverage. This methodical approach aimed to cut through official announcements and deployment targets to reveal the tangible state of the dual-network rollout in one of the country’s most critical economic regions. The goal was to understand how much of the 5G service was being delivered by the new infrastructure versus how much was still reliant on the original network.
The results of the drive tests provided a clear and unequivocal insight into the initial phase of Malaysia’s dual-network reality: DNB’s established network, particularly its powerful 3500 MHz mid-band spectrum, continues to provide the overwhelmingly dominant and essential 5G coverage footprint. The data showed that SIM cards from U Mobile, despite the operator’s active deployment of its own network, were still “camped” on DNB’s frequencies for a combined 83.2% of the test samples collected. In contrast, U Mobile’s own nascent network was utilized for only 16.8% of the samples. This stark finding underscores the profound reliance that the new entrant has on the incumbent’s mature infrastructure during this early stage. For comparison, the Yes SIM, acting as the DNB proxy, camped on DNB’s 3500 MHz band in 77.9% of its test samples, reinforcing the dominance of this frequency for delivering high-quality 5G SA service and highlighting the long road ahead for the second network to achieve parity.
A New Chapter in Malaysia’s 5G Story
Malaysia’s 5G journey provided a compelling case study in national telecommunications policy, where an innovative single wholesale network model successfully expedited deployment and achieved world-class speeds in its early phase. However, the project ultimately encountered the predictable strains of network maturation and the relentless growth of user demand. The subsequent decline in network performance, combined with the persistent challenge of 4G fallback despite high 5G device adoption, illuminated the inherent limitations of a single-network approach as the market evolved. The strategic shift to a Dual Network model was, therefore, a critical and necessary step. This move was aimed squarely at fostering a competitive environment, building essential network resilience, and ultimately elevating the long-term 5G experience for both consumers and businesses. As controlled testing revealed, this transition represented a gradual and complex process, with the new market entrant heavily dependent on the incumbent’s established infrastructure during its initial build-out phase. The future of Malaysia’s digital landscape was thus defined by the nation’s ability to effectively deploy and manage these two parallel networks to meet the ever-growing capacity demands of its digital economy.
