Telekom Malaysia Berhad (TM) signed an agreement with Digital Nasional Berhad (DNB) yesterday to provide DNB with Fibre Leasing Service for the deployment of the Government-controlled 5G network nationwide.
The term sheet agreement has a total contract value of RM2 billion over 10 years.
As part of the deal, DNB will be able to leverage on TM’s fibre and network infrastructure, and subscribe to TM’s 5G RAN-to-Edge Fronthaul and Backhaul solution for the provision of fibre connectivity, enabling DNB to provide 5G network services nationwide.
Under the agreement, Telekom Malaysia will provide DNB with 5G fibre leasing services for connectivity between DNB’s 5G mobile sites and nodes, leveraging on TM’s domestic fibre cable network spanning over 640,000 km across Malaysia. Prior to this, TM along with other fibre providers in Malaysia had participated in the 5G Fiber Leasing Request for Quotation (RFQ) exercise conducted by DNB in June 2021, it claims.
Commenting on the signing, Imri said: “Today’s signing further reinforces the Government’s aspiration of putting in place Malaysia’s digital infrastructure and network. We have always been a strong advocate of infrastructure sharing in providing connectivity services and endto-end solutions, to enable excellent wireless solutions and services.”
“As DNB’s selected partner in implementing the Government’s 5G network rollout plan in Malaysia, the signing of this Fibre Agreement is testament to our advanced network technology and workforce capabilities in delivering fibre solutions throughout the country. Critical in executing this mission is to ensure our network is robust to support the future requirements of 5G and further fuel technological innovation in Malaysia,” Imri added.
“In delivering the fibre connectivity for DNB’s 5G network, the local telecommunications vendors and suppliers’ ecosystem shall benefit too, in areas such as engineering services, supply of fibre, accessories, poles, manholes and premise equipment. Based on our current fibre implementation, we expect more than 70% of the work to involve and benefit bumiputera and local companies.”
“TM is also excited to utilise DNB’s 5G network to provide 5G services and solutions to our home, SME, enterprise and public sector customers. With the launch of DNB 5G network services yesterday, we will be able to test the 5G network and offer services on a trial basis in selected areas across Kuala Lumpur, Putrajaya and Cyberjaya,” Imri concluded.
The Malaysia-Government’s 5G network is now available at limited areas in Putrajaya, Cyberjaya and parts of Kuala Lumpur, from limited mobile network operators on limited 5G devices. Some 500 5G sites are being deployed by end of 2021. DNB has an ambitious target of 40% 5G coverage nationwide in 2022, 70% in 2023 and 80% in 2024.