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KUALA LUMPUR, Malaysia (July 8): The financing of network equipment for the National fifth-generation (5G) Network will be supplied from global and domestic financial institutions, according to Digital Nasional Bhd (DNB). Ericsson (Malaysia) Sdn Bhd has agreed to arrange financing as part of the agreement to supply, deliver, and manage the entire 5G network, while DNB will securitize future cash flow from its wholesale business with mobile network operators through Sukuk programs to fund its other network operating expenditure and meet its obligations to repay financiers when they become due.
“As a result, no government money will be required for the 5G network roll-out,” it said today in a statement.
DNB stated last week that Ericsson had been selected to develop and build the National 5G Network, which will cost RM11 billion.
DNB disclosed in a statement today that Ericsson’s design, build, and maintenance of the Malaysian 5G Network will cost RM11 billion, which is “approximately RM700 million less than the total cost of ownership of the next closest proposal.”
“The lowest cost was Ericsson’s RM4 billion for network equipment, deployment services, and ongoing maintenance and network management. Over a 10-year period, the remaining RM7 billion will cover network infrastructure costs from third parties, principally tower rental and fiber leasing “It was stated.
DNB, the government-owned special-purpose vehicle in charge of statewide 5G infrastructure and network rollout, has stated that more than 60% of network infrastructure spending will directly benefit bumiputeras with an interest in the telecommunications industry and bumiputera contractors.
Ericsson is also dedicated to contributing to Malaysia’s knowledge economy, with job creation, 5G-related knowledge building, and other socio-economic advantages expected to be worth RM4 billion during the contract’s lifetime, according to DNB.
Putting the spotlight on the tender process
DNB also announced today that its tender process was structured by Ernst & Young Consulting Sdn Bhd (EY Consulting), an independent professional services firm, and that it followed global standards and involved four panels of 50 local and international experts from ten countries with current 5G network roll-out experience.
According to DNB, the procedure started with a preliminary review of 14 Network Equipment Providers (NEPs), after which eight were shortlisted and invited to bid for the tender.
The following criteria were used to shortlist the NEPs, according to DNB: a. Proven credentials in successful 5G deployment and execution of end-to-end technology solutions; b. Availability of enhanced security to safeguard users and platforms; c. Established Malaysian presence and ecosystem, as well as a thorough understanding of the business environment, including existing vendor networks; d. Locally based r
Only four of the eight invited bidders submitted their proposals, according to DNB.
The tender evaluation team was made up of internal and external independent industry experts and experienced professionals, and the tender findings were then thoroughly discussed by the board tender committee and the DNB board.
“Throughout the tender process, the strictest standards of governance were implemented as advised and enabled by EY Consulting,” it stated.
It said that the tender requirements were based on criteria developed and improved through a rigorous process with industry feedback on the 5G network’s requirements, and were shared with all invited NEPs.
According to DNB, Ericsson was ranked first in all three important components of the tender evaluation criteria, which were as follows:
a. Technical: general 5G technology capabilities, 5G deployment capabilities, integration strategy, cyber and network security, and operations and maintenance are all covered.
b. Commercial: includes a financing proposal as well as the total cost of ownership.
c. Socio-economic: this category includes local development as well as socio-economic effects.
Datuk Seri Anwar Ibrahim, the head of the opposition, has demanded that the government make the terms of the 5G deal it awarded Ericsson public.
Meanwhile, DNB said in a statement today that it and Ericsson are on track to launch Malaysia’s 5G network in Kuala Lumpur, Putrajaya, and Cyberjaya by December 2021, with the goal of reaching 80 percent nationwide population coverage by 2024.
“DNB looks forward to working closely with all parties — government, industry, enterprises, and the rakyat — to ensure the nation is fully equipped with the essential 5G infrastructure in the near future to embrace and profit from the digital economy,” it said./nRead More

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