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Digital Nasional targets to award first 5G contracts by Q3 2021

KUALA LUMPUR: Digital Nasional Bhd has targeted to award its first tender for 5G infrastructure works by the third quarter (Q3) of this year.

Digital Nasional is the Ministry of Finance-owned special purpose vehicle (SPV) that oversees the multi-billion ringgit deployment of 5G infrastructure and network nationwide.

It is understood that the maiden contracts would involve foreign network providers, with one or two players being awarded.

Digital Nasional said the tender was issued a few weeks ago and confirmed that it had invited global network equipment providers to participate.

"Yes, we have invited global players that met the criteria of 5G deployment experience and local presence (to participate in the tender process). We are targeting (to award) by Q3," the company said when contacted by the New Straits Times.

Last month, it was reported that eight companies had been invited including Swedish telecommunications giant Ericsson, Chinese multinational corporations Huawei and ZTE, and American multinational technology firm Cisco.

Also rumoured to participate were Japanese multinational NEC, Finnish multinational telecommunications and technology company Nokia, South Korean multinational conglomerate Samsung and FiberHome, an information and communications technology network products and solutions provider in China.

The government has announced that Digital Nasional would be given the necessary spectrum (700 megahertz, 3,500 megahertz and 28 gigahertz) to solely own, implement and manage the national 5G infrastructure.

A sum of RM15 billion would be invested over 10 years with telcos being allowed to access the network through regulated wholesale arrangements.

Digital Nasional is licenced to operate under the Communications and Multimedia Act 1998.

It is subjected to regulatory oversight of the Malaysian Communications and Multimedia Commission (MCMC) as it will be licenced to operate under the Communications and Multimedia Act 1998 (CMA 1998).

The SPV is chaired by Ministry of Finance secretary-general Datuk Asri Hamidon while Augustus Ralph Marshall, who oversaw the rollout of Maxis Bhd and Astro Malaysia Holdings Bhd's networks, is its chief executive officer.

Asri, meanwhile, has been appointed as DNB chairman.

Its three board directors are Datuk Seri Dr Yusof Ismail, who is director-general of Mampu at the Prime Minister's Department, MCMC's former chairman Datuk Mohamed Sharil Tarmizi and lawyer Datuk Muthanna Abdullah.

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