Recently it was reported that the US and the EU have written to the Malaysian government warning them of the negative implications if it decides to change the current 5G deployment via a Single Wholesale Network model. Among the key concerns is the potential security risks involved if allowing a second 5G network would open an opportunity for Huawei to be involved in Malaysia’s 5G rollout.
As we all know, the US are cracking down on Chinese vendors such as Huawei and ZTE as they are seen as a threat to US national security. While the US and EU are urging Malaysia to maintain its current 5G rollout via Digital Nasional Berhad and Ericsson, it is worth highlighting that China’s ZTE is already involved in the current 5G rollout.
As published by The Edge, ZTE won a bid in 2021 to become a vendor for Digital Nasional Berhad for the supply of IP Router and indoor connectivity solutions throughout the country. According to ZTE, their indoor connectivity boasts SuperMIMO functionality which provides a throughput of between 3-4 times that of traditional cells.
The Chinese vendor added that the feature ensures superior coverage and signal stability for 5G users, even in highly built-up areas. In addition, the advanced solution promises to address traditional bottlenecks seen in other systems, such as when trying to balance between solving “interference” problems and the need to provide adequate capacity.
What’s interesting is there is not much coverage about ZTE winning the bid in Malaysia to rollout indoor 5G coverage for DNB. The details of ZTE’s contract hasn’t been made public.
Swedish telecommunications giant Ericsson was appointed as the 5G vendor by DNB with contracts worth RM11 billion after a three-month tender process. According to DNB, Ericsson was picked out of four players and their estimated cost was around RM700 million lower than the next closest bid.
At the moment, Malaysia’s national 5G network rollout by DNB is at 54.7% population coverage as of 31st March 2023. To catch up, the target is now to achieve 80% 5G population coverage by the end of 2023, which is a year ahead of DNB’s original schedule. The government has yet to conclude its 5G review and decide on its next steps. It was reported that the government is considering to break DNB’s 5G monopoly by allowing a second 5G network to enable infrastructure competition.
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