5G trial not approved: Muthuvel

By DALE LUMA
STATE Enterprises Minister Sasindran Muthuvel says the pre-launch of the 5G (fifth generation mobile network system) trial by bmobile and Huawei PNG Ltd was not approved by the National Executive Council (National Executive Council).
Muthuvel told The National that this was because it was not included in last year’s Kumul Telikom Holdings Ltd (KTHL) operating plan as per the Kumul Consolidated Act.
“A comprehensive brief has been requested from KCH (Kumul Consolidated Holdings) plus an explanation from KTHL on this proposal is being demanded,” he said.
“KCH have been instructed to ascertain from the KTHL and bmobile board and management a business case and due diligence.
“Significant investment in the bmobile network will require a clear business case to demonstrate the commercial viability of the capital expenditure and a clear payback period if borrowing is required.
“The business case needs to be supported by a due diligence review of 5G technology which should include at a minimum, benefits, opportunities, costs, risks and mitigations. The due diligence preferably is to be undertaken by an independent third party expert.
“In line with commitments to SOE (state-owned enterprise) reform, if due diligence and research on 5G technology demonstrates the suitability for PNG, then KTHL and bmobile will be expected to run a competitive bidding process.
“This is to ensure that PNG is getting not only a quality product but at a market tested cost price from vendors. KTHL’s priority must be optimising our 3G and 4G network before embarking on a 5G project.
“We haven’t fully utilised 3G and 4G network and expanded to the entire country.
“Let’s fix the existing facilities and expand the network coverage to the entire country.”
Muthuvel said the Government did not support unsolicited projects as per its commitments to people.