DNB had selected Ericsson as its 5G vendor in July 2021
Malaysian state-backed 5G wholesale provider Digital Nasional Berhad (DNB) could potentially select a second vendor for its 5G network, local press reported, citing a report by Singaporean investment bank UOB-Kay Hian.
The report revealed that DNB isn’t exclusively committed to Ericsson, which was selected in July 2021 to build DNB’s national 5G network. The report also suggested that there could be a provision in the contract related to the introduction of a second network provider—which opens the door for vendors such as Nokia, Huawei or ZTE to get involved in its 5G rollout plans.
The Singaporean bank stated that the introduction of a second 5G vendor may lead to lower 5G deployment costs. UOB-Kay Hian also reportedly said that it believes that DNB is likely to remain the single wholesale network, because it achieved 47% population coverage by end of 2022.
In specific areas, DNB has said it has achieved more than 90% of population coverage with its 5G network: throughout Kuala Lumpur and Putrajaya, and Selangor as well as about 50% population coverage in Johor, Malacca and Negeri Sembilan. The 5G network currently enables an average downland speed of 380 Mbps, compared with a 35 Mbps rate for 4G.
DNB said it is now focused on delivering the committed target of 80% of the country’s populated areas by the end of 2024. The company’s 5G network currently reaches some 15 million people and will reach 30 million once fully deployed.
Digital Nasional Berhad is a special-purpose vehicle set up by the Malaysian government with the main goal of deploying and managing Malaysia’s 5G network.
Last year, former Prime Minister Muhyiddin Yassin had unveiled an initiative for a state-owned vehicle to own all 5G spectrum, with various carriers using the infrastructure to provide mobile services across Malaysia in what would effectively be a wholesale/MVNO arrangement.
Following the announcement of this plan, the country’s telcos had raised concerns about a single state company owing all spectrum frequencies.
Local carriers Celcom Axiata, Digi Telecommunications, Telekom Malaysia, U Mobile and YTL Communications are already offering retail 5G services available to their subscribers, following the signing of their respective 5G access agreements with DNB in October last year.
The new Malaysian government recently announced that it would be reviewing the rollout of the national 5G network, and expected the 5G network implementation policy to be submitted before the Cabinet by the end of March.
The new prime minister said that these plans will be revised due to the lack of transparency.
Last month, local carrier Maxis said it will postpone seeking its shareholders’ approval on its entry into a 5G access agreement with DNB until the government finalizes the review of its 5G implementation policy.
