Kuala Lumpur: Tech giant Ericsson, selected by Digital Nasional Bhd (DNB) to deploy its fifth-generation (5G) national network. Believes that critical network infrastructure is essential to accelerate the country’s transition to a digital economy. Ericsson Malaysia, Sri Lanka, and Bangladesh Chairman David Hagbro said that Ericsson is honored to cooperate with DNB to launch 5G.

Malaysia does not like Huawei like the United States and some other Western countries. Due to security issues and its relationship with Beijing, it is not allowed to bid for government contracts, especially 5G projects. In February 2021, Malaysia decided to cooperate with Huawei to establish a cybersecurity laboratory.

On Thursday, DNB and Ericsson (M) Sdn Bhd signed an agreement worth RM11 billion to accelerate the rollout of 5G networks and ecosystems. Which are expected to create 100,000 jobs. The announcement was made on Thursday because Malaysia plans to launch 5G by the end of the year 2021 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 on Thursday that Ericsson will be responsible for the design and development of an end-to-end 5G network in the country. “Ericsson is committed to taking measures to fund the deployment, development, and management of the entire 5G network,” Digital Nasional said. The agency said it 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.In early October 2019, users hired Huawei to provide 5G equipment for Malaysia’s largest wireless operator Maxis. As per the agreement, the Chinese company should provide 5G radio, services, and proprietary technology for the Maxis network. However, the condition of the Maxis deal is that the allocation of 5G frequencies is provided to various operators. And the choice of equipment suppliers depends on the respective frequency owners. However, the government of Prime Minister Muhiddin Yassin has moved away from traditional distribution methods and created Digital Nasional to own 5G assets and spectrum.

Hegerbro added that 5G will provide users with faster connection speeds, ultra-low latency, and higher bandwidth. And enable Malaysian entrepreneurs to develop applications that benefit consumers and support businesses in the country. As part of the work, Ericsson will lead the design and development of the national end-to-end 5G network, including the core. Like radio transmission, and transport network (RAN), and business and operations support system (OSS). / BSS) and hosting services.

“As part of the development of the information and communication technology industry in Malaysia since 1965. We are pleased that our flagship 5G solution and global deployment experience of 86 operating 5G networks now benefit all Malaysians,” he said. Ericsson also creates value in Malaysia through knowledge creation and technology transfer. During the contract period, this expenditure is estimated to be 4 billion ringgit. 

Ericsson President and CEO Borje Ekholm said: “Faster connection speeds, ultra-low latency, and increased 5G mobile broadband bandwidth will enable Malaysia to quickly bridge the digital divide.” “To this end, we will work with Digital Nasional to create a 5G experience And innovation laboratory.” Ericsson currently offers 86 operational 5G networks and has been operating in Malaysia since 1965.

Ericsson CEO stated that “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.