KUALA LUMPUR, Malaysia (July 1): Following a competitive procurement process that began in March, Digital Nasional Bhd (DNB) announced that Ericsson (Malaysia) Sdn Bhd has been selected to design and develop the National 5G Network at a cost of RM11 billion. The RM11 billion cost of 5G infrastructure development, which would not be borne by the government, is significantly less than the RM15 billion cost previously budgeted.
Ericsson has agreed to handle finance for the supply, delivery, and management of the complete 5G network, according to DNB.
DNB, on the other hand, will use Sukuk programs to securitize future cash flows from its wholesale business in order to fund all other network operating expenses and repay all vendor financing arrangements.
The revised cost includes tower rental and fibre leasing, of which more than 60% is expected to benefit Bumiputera and other Malaysian contractors over the next ten years, according to DNB, the government-owned special purpose vehicle (SPV) that is deploying the 5G infrastructure and network nationwide.
“Ericsson will design and build the end-to-end 5G network, which will include the core, radio access and transport network (RAN), operation and business support systems (OSS/BSS), and managed services.
“Ericsson will also invest in capacity building and innovation programs to help local vendors grow and participate in 5G, as well as to increase public adoption of the technology. This is in addition to the development of use cases to help the industry participate more quickly “In a statement, DNB added.
DNB clarified that 5G adoption in Malaysia will be focused on three key service offerings: enhanced mobile broadband (eMBB), ultra-reliable, low latency communication (URLLC), and massive machine type communications (mMTC) — all of which are aimed at Malaysian industries such as oil and gas, ports, airports, government services, healthcare, power and utilities, manufacturing, banking and finance.
It also stressed the importance of securing users and platforms through improved security, which is a vital component of 5G technology and services.
DNB plans to establish a 5G network by the end of 2021.
DNB chairman Datuk Asri Hamidon said the plans are on track, with the 5G network and ecosystem set to launch in Kuala Lumpur, Putrajaya, and Cyberjaya by the end of 2021.
Asri stated that DNB will begin implementing 5G to five major cities and districts in the states of Selangor, Penang, Johor, Sabah, and Sarawak by 2022, and then countrywide by 2023 to encompass 17 cities and rural areas.
“Through 5G connectivity, the goal is to promote inclusive wealth to the rakyat. This is accomplished in two ways: first, by having an immediate impact on the local vendor ecosystem. Ericsson’s commitment to value creation in Malaysia’s knowledge economy is exemplified by several efforts such as 5G-related knowledge development and technology transfers, which are anticipated to be worth RM4 billion over the contract’s duration.
“The second goal is to achieve considerable coverage by making 5G services available in designated locations by the end of 2021, and to reach the 80 percent population coverage goal by 2024,” he said.
Meanwhile, Ericsson president and CEO Borje Ekholm said his company is excited to work with DNB on the deployment of 5G in Malaysia because Ericsson brings leading 5G solutions, global experience in deploying 86 live 5G networks, and strong market knowledge, having been a part of shaping Malaysia’s information and communication technology industry since 1965.
“As an innovation platform, 5G will enable Malaysian entrepreneurs to develop future applications for the benefit of Malaysian consumers and enterprises. In order to accelerate the adoption of 5G use cases, we will partner with DNB on a 5G Experience and Innovation Lab “Ekholm explained./n
