DNB in RM11 billion network deal with Ericsson

by | Jul 3, 2021 | Business, LOCAL | 0 comments

Digital Nasional Bhd (DNB) has signed an RM 11 billion deal with Ericsson (M) Sdn Bhd to hasten the commissioning of Malaysia’s nationwide fifth generation (5G) network and the associated ecosystem which is set to witness the creation of about 100,000 jobs.

The 5G network system is scheduled to be launched by the end of this year in Kuala Lumpur, Putrajaya and Cyberjaya and is expected to cover other parts of the country following this.

In a statement, DNB stated that the deal would include tower rental and fibre leasing of which more than sixty percent over the next 10 years will benefit bumiputera and other Malaysian contractors.

The design and build of the 5G network will be undertaken by Ericsson and they will also arrange for the financing of the supply, delivery and management of the entire 5G network system.

On the other hand, DNB will securitize future cashflow from its wholesale business via sukuk programs to finance all other network operating expenditure and to repay all the vendor financing details.

Ericsson will ensure the design and development of the end-to-end 5G network comprising core, radio access and transport network, operation and business support systems as well as managed services.

Ericsson will also ensure the implementation of the capacity building and innovation programs to support local vendor development and participation as well as to boost 5G use among the general public.