Malaysia’s groundbreaking journey into 5G, once celebrated as a global benchmark for speed and rapid deployment, now confronts a challenging reality of declining performance that questions the long-term viability of its unique national strategy. This research summary examines the central paradox of the nation’s 5G network: its rapid ascent to world-class performance followed by a significant and sustained slowdown. The analysis addresses key questions regarding the structural causes of this performance degradation, the growing gap between high 5G device ownership and low actual network usage, and the strategic implications of the nation’s pivotal shift from a single wholesale network to a competitive dual-network model. This investigation provides a critical look at the complex interplay between infrastructure policy, market dynamics, and the end-user experience in one of Southeast Asia’s most ambitious digital experiments.
The Paradox of Success Charting the Rise and Decline of Malaysia’s 5G Network
The narrative of Malaysia’s 5G deployment is a compelling story of initial triumph followed by emerging complexities. At its core, this analysis dissects the paradox of a network that achieved global recognition for speed and coverage only to see its performance metrics steadily decline as it gained popularity. This trajectory presents a crucial case study in network management and national telecommunications strategy. The research delves into the underlying factors driving this slowdown, questioning whether the very model that enabled its swift launch contained inherent limitations that would surface as the market matured.
This examination seeks to uncover the root causes of the network’s performance challenges. It investigates the structural weaknesses that may have contributed to congestion and slower speeds as user adoption surged. Furthermore, the research explores the significant discrepancy between the number of 5G-capable devices in the hands of consumers and the actual time those devices spend connected to the 5G network, pointing to critical gaps in service delivery. Ultimately, it assesses the strategic shift from a government-led monopoly to a competitive dual-network system, evaluating this policy change as a direct response to the growing pains of a successful but strained infrastructure.
From Global Leader to Growing Pains The Context of Malaysia’s 5G Journey
Malaysia embarked on its 5G journey with a distinctive and ambitious strategy centered on a government-led Single Wholesale Network (SWN), managed and deployed by the state-owned entity Digital Nasional Berhad (DNB). This model was designed to accelerate nationwide 5G adoption by creating a single, shared infrastructure that all mobile network operators could access, thereby avoiding costly and duplicative network rollouts. This approach yielded remarkable initial results, with DNB rapidly achieving extensive population coverage and delivering median download speeds that placed Malaysia among the global elite. The SWN model was hailed as an innovative solution to fast-track the nation’s digital transformation. The significance of this research extends far beyond Malaysia’s borders, offering a critical case study on the long-term viability of a monopolistic infrastructure model in a dynamic and maturing market. As nations worldwide grapple with the enormous costs and complexities of 5G deployment, Malaysia’s experience provides invaluable insights for policymakers, regulators, and the telecommunications industry. By charting the full lifecycle of the SWN—from its celebrated launch to the emergence of performance issues and the eventual pivot toward a competitive framework—this analysis illuminates the potential trade-offs between speed of deployment and long-term network resilience, capacity, and innovation.
Research Methodology Findings and Implications
Methodology
The foundation of this analysis rests on quantitative data sourced from Ookla’s Speedtest Intelligence®, collected over a two-year period from the fourth quarter of 2023 through the third quarter of 2025. This extensive dataset was used to measure and track key performance indicators that paint a comprehensive picture of the network’s health. These metrics included median 5G download and upload speeds, 5G availability—which measures the proportion of users with 5G-capable devices who spend the majority of their time on the 5G network—and the rate of 5G device adoption among the general population.
To complement this large-scale data analysis, the research incorporated controlled, on-the-ground field testing. This qualitative component was conducted in the populous Klang Valley in October 2025 using Speedtest Drive™ technology. The purpose of this real-world assessment was to capture a snapshot of the network landscape during the critical transition phase to a dual-network model. By actively testing network performance in a live environment, the study could evaluate the practical realities of coverage, handover between networks, and the initial footprint of the newly emerging second 5G network relative to the incumbent DNB infrastructure.
Findings
A primary finding of the research is a sharp and sustained decline in network performance as the 5G market matured. Median 5G download speeds, once a point of national pride, fell dramatically from a peak of 451.79 Mbps to 242.92 Mbps. This degradation is directly correlated with the surge in user adoption and the expansion of the network’s user base, which led to significant congestion on the single, shared infrastructure. As more consumers connected with 5G devices, the capacity of the SWN was increasingly strained, resulting in a diminished experience for all users.
This slowdown in Malaysia becomes particularly stark when viewed in contrast to its regional peers. Mature 5G markets such as South Korea and Singapore successfully maintained or even improved their network performance over the same period, suggesting that their multi-operator, competitive models offer greater resilience and more effective capacity management. The divergence in performance trajectories implies that the challenges faced in Malaysia are not universal to all 5G deployments but may be inherent to the structural limitations of a single-network model struggling to cope with rapidly escalating demand.
The data also reveals a significant gap between the high rate of 5G device adoption and the comparatively low rate of actual 5G network usage. While an impressive 79.5% of all tests originated from 5G-capable devices, those same devices were found to be connected to a 5G network only 29.8% of the time. This discrepancy is primarily attributed to two critical factors: poor indoor signal penetration, where 5G signals struggle to pass through walls, and inconsistent coverage in rural areas. Consequently, a vast majority of 5G-ready users spend most of their time on the older 4G LTE network.
Early field testing of the new Dual Network model provides a clear picture of the current competitive landscape. The results show that the incumbent DNB network remains overwhelmingly dominant, providing the foundational 5G footprint for nearly all users. The competing network from U Mobile, while actively being deployed, is still in a nascent stage. Test devices using U Mobile’s service were predominantly connected to DNB’s network, indicating that the transition to a truly competitive environment is still in its infancy and that DNB’s infrastructure continues to be the backbone of the nation’s 5G experience.
Implications
The findings strongly suggest that while a single wholesale network model can be highly effective for accelerating the initial rollout of a new technology, it struggles with scalability and capacity management as a market matures. The very structure that streamlined deployment became a bottleneck when faced with the demands of a large and active user base, leading to a negative impact on the overall consumer experience. This indicates a fundamental trade-off between the speed of initial deployment and the long-term sustainability of network quality in a monopolistic framework. Consequently, the strategic shift to a dual-network model is validated as a necessary and logical step to address the performance degradation observed under the SWN. The introduction of infrastructure-level competition is poised to not only alleviate congestion but also enhance network resilience by creating redundancy. This policy evolution is aimed at fostering an environment where multiple operators are incentivized to invest in network quality and capacity, ultimately benefiting consumers through improved speeds, more reliable coverage, and greater service innovation. For the global telecommunications industry, Malaysia’s journey serves as a crucial and timely lesson on the potential long-term limitations of a non-competitive national 5G infrastructure. Nations considering a similar state-led, single-network approach must weigh the initial benefits of rapid deployment against the potential risks of performance stagnation, lack of innovation, and challenges in meeting escalating consumer demand over time. Malaysia’s experience underscores the enduring value of competition in driving network excellence and ensuring that next-generation infrastructure can deliver on its transformative promise.
Reflection and Future Directions
Reflection
This study offered a reflection on Malaysia’s ambitious 5G experiment, an endeavor that successfully achieved its initial goals of rapid deployment and world-class speeds but soon encountered predictable scalability challenges inherent in its design. The SWN model proved to be a powerful tool for kickstarting the 5G era, yet its centralized nature became a liability as the network’s popularity grew. The resulting congestion and performance decline highlight a classic tension between centralized planning and the dynamic demands of a free-market ecosystem.
A key challenge in this analysis was precisely isolating the performance issues directly attributable to the SWN model versus those that represent universal hurdles in any large-scale 5G deployment, such as indoor penetration and rural coverage. However, the stark contrast in performance trends between Malaysia and its multi-operator regional counterparts provided strong circumstantial evidence. The relative stability and resilience of competitive markets suggest that Malaysia’s slowdown was significantly exacerbated by the structural limitations of its single-network approach in handling rapidly growing user demand.
Future Directions
Looking ahead, future research should focus on continuously monitoring the performance of both the incumbent and the new entrant networks to empirically determine if competition effectively delivers on its promise to improve speed, expand coverage, and enhance overall service quality. Longitudinal studies tracking key performance indicators over the next several years will be essential to validate the success of the dual-network policy and measure its tangible benefits for Malaysian consumers.
Further studies are also needed to assess the broader economic and innovative impacts of the dual-network model. Research should explore how infrastructure competition influences consumer pricing, stimulates the development of novel services, and accelerates the creation of enterprise-level 5G applications in sectors like manufacturing, logistics, and healthcare. Understanding these secondary effects will be crucial for evaluating the full return on investment from this strategic policy shift.
Finally, answering the persistent challenge of ubiquitous 5G coverage requires dedicated research into the economic viability and technical effectiveness of advanced solutions. Future investigations should focus on scalable and cost-effective technologies for improving indoor 5G penetration and extending high-quality service to underserved rural communities. Addressing these coverage gaps remains the final frontier in truly delivering on the promise of 5G for all Malaysians.
Conclusion Navigating Malaysia’s Path Toward a Resilient and Competitive 5G Future
The investigation concluded that Malaysia’s pioneering single wholesale 5G network, despite its initial and laudable triumphs in speed and deployment, had ultimately buckled under the considerable strain of its own success. This led to a notable and sustained decline in performance that impacted the user experience across the country. The high adoption rate of 5G-capable devices among the population was consistently undermined by critical coverage gaps, particularly indoors and in less populated regions, which prevented the technology from reaching its full potential. The transition to a dual-network model was therefore identified not just as a policy adjustment but as a pivotal and necessary evolution. This strategic shift was aimed at introducing the vital elements of competition and resilience needed to secure the nation’s digital future and, at last, deliver on the full promise of 5G for all Malaysians.