Govt Picks Ericsson As 5g Partner Instead Of Huawei

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Digital Nasional Bhd (DNB) has partnered with Ericsson (Malaysia) Sdn Bhd to accelerate the deployment of Malaysia’s fifth-generation (5G) network and ecosystem.
This concludes the rigorous tender exercise initiated in March 2021, DNB, which is a government-owned special purpose vehicle set up to build, own and operate Malaysia’s 5G infrastructure, said in a statement yesterday.
“The design and development of the national 5G network will be undertaken by Ericsson at a total cost of RM11 billion, including tower rental and fibre leasing.
“Of that amount, more than 60 percent is expected to benefit bumiputera and other Malaysian contractors over the next 10 years,” it said.
In addition, it said that DNB will securitise future cash flows from its wholesale business via sukuk programmes to finance all other network operating expenditures and to repay all vendor financing arrangements.
“Ericsson will undertake the design and development of the end-to-end 5G network comprising core, radio access and transport network (RAN), operation and business support systems (OSS/BSS) and managed services.
“The telecommunications service provider will also undertake capacity building and innovation programmes to support local vendor development and participation, as well as to boost 5G adoption amongst the public,” the statement added.
DNB chairperson Asri Hamidon said the company remains on track in its efforts to bring the best, competitively-priced technology and solution to drive 5G adoption nationwide.
“This partnership model will also fast-track the roll-out to Sabah and Sarawak, allowing the country to advance quickly towards providing inclusive and enhanced 5G services and connectivity under the Malaysia Digital Economy Blueprint (MyDigital),” he said.
Asri explained that the goal is to bring about inclusive prosperity to the rakyat through 5G connectivity in two parts.
“Firstly, through an immediate impact on the local vendor ecosystem.
“This is amplified by Ericsson’s committed value-creation activities in Malaysia’s knowledge economy through varied initiatives such as 5G-related knowledge building and technology transfers, which is estimated at RM4 billion over the period of the contract,” he said.
The second goal is to achieve significant coverage by making available 5G services in the targeted areas -- Kuala Lumpur, Putrajaya and Cyberjaya -- by the end of 2021, said the chairperson.
“This will enable achieving the 80 percent population coverage goal by 2024,” Asri noted.
DNB is planning to deploy the 5G network to five major cities and districts in Selangor, Penang, Johor, Sabah and Sarawak in 2022.
It expects to cover 17 cities, as well as rural areas, from 2023 onwards. - Bernama

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