KUALA LUMPUR, Dec 21 — Digital Nasional Bhd (DNB) today said that its network equipment provider (NEP) procedures followed global best practices, which were formulated by Ernst and Young (EY), and "rigorously evaluated by more than 50 professionals from over 10 countries".

DNB said that the process has also yielded optimal results for the firm and country.

In a briefing note to Digital Communications Minister Ahmad Fahmi Mohamed Fadzil ahead of a meeting today, DNB had sought to explain its current status and future projections with the availability of 5G, via the single wholesale network (SWN).

DNB was established in early March 2021 to accelerate the deployment of 5G infrastructure and networks in Malaysia. It will offer 5G as a wholesale network service to other telcos.

"The tender process yielded optimal results for DNB and Malaysia for the deployment of the 5G network. The 5G Radio Access Network (RAN) prices obtained were lower than global benchmark prices, according to Accenture," it said, referring to the Irish-American professional services company.

"Besides the NEP, a rigorous process was conducted for the full turnkey In Building Solution (IBS) tender," DNB said, adding that it had also aggressively rolled out the 5G network and infrastructure to meet the coverage of populated area (COPA) targets.

"Besides successfully launching the availability of commercial services (in Putrajaya, Cyberjaya and Kuala Lumpur) on December 15, 2021, DNB will exceed its COPA target of approximately 40 per cent for 2022, on its way to achieving 80 per cent COPA by 2024.

"This includes rolling out sites in rural and suburban areas via DNB's supply-led deployment (in contrast to the demand-based rollout by the telcos), helping to bridge the urban-rural digital divide," it added.

DNB said that additionally, it will also deploy IBS for 250 buildings approved by the Malaysian Communications and Multimedia Commission (MCMC) by 2024.

It said that to ensure the efficient deployment of 5G, the multiple operator core network (MOCN) technology was successfully employed to optimise spectrum and enhance 5G capacity, while dramatically reducing the wholesale cost for all telcos.

In the note, DNB said that it has also met all its regulatory conditions and requirements, including obtaining approval for its detailed business plan.

DNB added that the budgeted cost for the 5G network and infrastructure also remains at RM16.5 billion over 10 years — as approved by the MCMC and the DNB board which was announced on October 16, 2021.

"Of this, RM6.9 billion has been committed or contracted, with RM1.9 billion incurred, to-date. Of the RM4.3 billion network infrastructure cost (excluding network equipment from Ericsson) contracted, RM2.6 billion (or 60 per cent) were contracted with Bumiputera contractors.

"It is forecasted that the revenue generated from the minimum committed capacity from telcos, as well as incremental capacity based on the demand forecast from the telcos, will be in excess of the total cost requirements — with a projected surplus of RM800 million at end-September 2032," DNB said.

Earlier this month, Fahmi said that the 5G network rollout in Malaysia will resume as soon as possible, pending a joint review by his ministry and the Finance Ministry.

He said that Prime Minister Datuk Seri Anwar Ibrahim at a Cabinet meeting on December 7, had expressed his desire that there should be no delay in the rollout.

Fahmi also said that Anwar would be meeting with DNB, the company tasked by the previous government to handle the rollout, which would also leave the company owning the whole spectrum of 5G infrastructure.

Fahmi also said that a further announcement on the matter will be made by Anwar — who is also the finance minister — after he meets with DNB.

Anwar had previously alleged that the project award to DNB had not been done with a proper tender process and that the award will need to be reviewed.

However, in response, the firm had in a statement maintained that the tender process was transparent and said it was committed to cooperating with the review.