Malaysia's major wireless carriers have recommended the government allow a second 5G service to be set up, according to three sources and documents seen by Reuters, ahead of a cabinet decision on whether to go ahead with a plan for a single wholesale network.

The cabinet will decide by January whether to allow multiple 5G providers, following concern from industry players that a single state-run network could hamper competition, Communications and Multimedia Minister Annuar Musa said last week.

Reuters in November reported an impasse between mobile operators and Digital Nasional Berhad (DNB), the state agency...