On June 29, 2021, Digital Nasional Bhd (DNB) selected Ericsson to deploy a fifth-generation (5G) national network in Malaysia, with the project valued at RM11 billion. Ericsson will be responsible for designing and developing an end-to-end 5G network in the country. The decision to choose Ericsson over other companies, including Huawei, was likely due to security concerns and Malaysia’s desire to accelerate its transition to a digital economy. According to Ericsson Malaysia, Sri Lanka, and Bangladesh Chairman David Hagbro, critical network infrastructure is essential for this transition.
introduction to the project
The project aims to create 100,000 jobs and cover 80% of the population by 2024. Initially, the service will be provided in Kuala Lumpur, Putrajaya, and Cyberjaya Multimedia in 2021. Digital Nasional said that Ericsson will lead the design and development of the national end-to-end 5G network, including the core, radio transmission, and transport network (RAN), and business and operations support system (OSS)/BSS) and hosting services. As Hagbro noted, “Ericsson is honored to cooperate with DNB to launch 5G.” The company believes that 5G will provide users with faster connection speeds, ultra-low latency, and higher bandwidth, enabling Malaysian entrepreneurs to develop applications that benefit consumers and support businesses in the country.
security concerns and huawei
Malaysia’s decision to choose Ericsson over Huawei is likely due to security concerns and the company’s relationship with the Chinese government. In February 2021, Malaysia decided to cooperate with Huawei to establish a cybersecurity laboratory, but the company is not allowed to bid for government contracts, especially 5G projects, due to these concerns. As a result, Ericsson was selected for the project, which is expected to play a important role in Malaysia’s transition to a digital economy. According to Ericsson President and CEO Borje Ekholm, “Faster connection speeds, ultra-low latency, and increased 5G mobile broadband bandwidth will enable Malaysia to quickly bridge the digital divide.” Ekholm also stated that the company will work with Digital Nasional to create a 5G experience and innovation laboratory.
economic benefits and job creation
The project is expected to have a significant impact on Malaysia’s economy, creating 100,000 jobs and driving growth in various sectors. As Hagbro noted, “We are pleased that our flagship 5G solution and global deployment experience of 86 operating 5G networks now benefit all Malaysians.” Ericsson also creates value in Malaysia through knowledge creation and technology transfer, with an estimated expenditure of 4 billion ringgit during the contract period. The company has been operating in Malaysia since 1965 and has a long history of investing in the country’s telecommunications sector. According to Ekholm, “For now, the real work has just begun for the development of 5G telecommunication. And we want to justify our trust in ourselves. We look forward to staying at the forefront of Malaysia’s telecommunications development and providing a better experience.”
future plans and development
The project is expected to be completed by 2024, with the initial phase covering Kuala Lumpur, Putrajaya, and Cyberjaya Multimedia. Digital Nasional will securitize the future cash flow of its wholesale business through Islamic bonds to fund all other operating expenses of the network and repay all supplier financial agreements. As the project progresses, Ericsson will continue to work with Digital Nasional to develop and deploy the 5G network, providing faster connection speeds, ultra-low latency, and higher bandwidth to users across the country. With the project underway, Malaysia is poised to become a leader in the region’s telecommunications sector, driving growth and innovation in various industries. As Ekholm noted, “We will work with Digital Nasional to create a 5G experience and innovation laboratory,” which will enable the country to quickly bridge the digital divide and drive economic growth.
The selection of Ericsson for the 5G project marks a significant milestone in Malaysia’s transition to a digital economy. With the project expected to create 100,000 jobs and drive growth in various sectors, the country is poised to become a leader in the region’s telecommunications sector. As Ericsson and Digital Nasional work together to develop and deploy the 5G network, Malaysia will be able to provide faster connection speeds, ultra-low latency, and higher bandwidth to users across the country, driving innovation and economic growth. The project’s success will depend on the ability of Ericsson and Digital Nasional to work together effectively, and the company’s commitment to providing a better experience for users in Malaysia. With the project underway, Malaysia is expected to make significant progress in its transition to a digital economy, and the selection of Ericsson is a important step in this process.
