Malaysia has a vendor for its national 5G network, and the price is lower than the government had planned. Digital Nasional Bhd (DNB), the government-owned company building the network, said on July 1 that it has appointed Ericsson (Malaysia) Sdn Bhd to design and build it for RM11 billion.
The Edge Malaysia reported that figure is well under the RM15 billion previously budgeted, and that the government will not carry the bill. The appointment ends a tender exercise that began in March.
Who pays
Ericsson has agreed to arrange financing for the supply, delivery and management of the whole network. DNB, for its part, will raise money against future cash flows from its wholesale business through Sukuk programmes. That money will cover the network’s other operating costs and repay the vendor financing.
The RM11 billion includes tower rental and fibre leasing. DNB said more than 60% of that is expected to go to Bumiputera and other Malaysian contractors over the next 10 years.
What Ericsson will build
The job covers the full network: the core, radio access and transport network (RAN), operation and business support systems (OSS/BSS) and managed services. Ericsson will also run capacity-building and innovation programmes to help local vendors take part and to push public use of 5G. It will work with DNB on a 5G Experience and Innovation Lab.
DNB chairman Datuk Asri Hamidon framed the aim as “inclusive prosperity to the Rakyat through 5G connectivity.” He said Ericsson’s knowledge-building and technology transfer work in Malaysia is estimated at RM4 billion over the contract period.
Rollout schedule
The first services are due by the end of 2021 in Kuala Lumpur, Putrajaya and Cyberjaya. In 2022, DNB will start deploying 5G in five major cities and districts in Selangor, Penang, Johor, Sabah and Sarawak. From 2023, the network is to reach 17 cities as well as rural areas. The target is 80% population coverage by 2024.
Ericsson president and chief executive Börje Ekholm said the company brings experience from 86 live 5G networks and has worked in Malaysia since 1965. 5G, he said, will let Malaysian entrepreneurs “create future applications for the benefit of consumers and businesses in the country.”
Sources
- Malaysia picks Ericsson for RM11bil project to deploy 5G nationwide
- Govt appoints Ericsson Malaysia to build 5G infrastructure at lower cost of RM11b
Sources
- Malaysia picks Ericsson for RM11bil project to deploy 5G …
- Govt appoints Ericsson Malaysia to build 5G infrastructure at …
