DNB rebuts FMM's RM50bil 5G deployment claim

DNB rebuts FMM's RM50bil 5G deployment claim

Digital Nasional Bhd (DNB) said there was no government funding or guarantees that were anticipated or expected, other than an initial start-up investment of RM500 million.

KUALA LUMPUR: Digital Nasional Bhd (DNB) has clarified that the approved cost of the 5G network and infrastructure deployment is RM16.5 billion over the next 10 years, funded by revenues generated by the sale of 5G capacity mobile network operators (MNOs).

There was no government funding or guarantees that were anticipated or expected, other than an initial start-up investment of RM500 million, it added.

DNB was responding to comments made by the Federation of Malaysian Manufacturers (FMM) which reportedly said the previous government's 5G plans were to invest RM50 billion in the next 10 years and that a decade was too long.

"The network is on track to cover 80 per cent by 2024, including even more industrial zones throughout the country – as well as nearly 28 million people – within three years of becoming available in December 2021," DNB said.

The company said Malaysia's 5G network and infrastructure were being deployed on an accelerated schedule and presently covered 38 per cent of populated areas nationwide, including key industrial areas across the Klang Valley, Penang and Johor.

It said the public can view current 5G coverage areas on its Interactive Coverage Map, which already included parts of Negri Sembilan, Malacca, Perak, Kelantan, as well as Sabah and Sarawak.

FMM president Tan Sri Soh Thian Lai was quoted as saying at the recent FMM Industry 4.0 Conference 2022 that the government should have the 5G infrastructure ready in five years.

"Only then, will we be able to enhance more smart manufacturing."

Soh added that investors might reconsider investing in areas with limited 5G coverage, as Industry 4.0 uses big data analytics that relied on stable Wi-Fi, thus the government must implement 5G in all industrial parks with fast high-speed broadband.

To-date, five major mobile network operators - Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd - have commenced retail 5G services to end users, following the execution of their respective access agreements with DNB on Oct 31 this year.

https://www.nst.com.my/business/2022/12/857549/dnb-rebuts-fmms-rm50bil-5g-deployment-claim