MoF estimates total cost of 5G coverage at RM12.5b

MoF estimates total cost of 5G coverage at RM12.5b
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KUALA LUMPUR (Dec 15): The Ministry of Finance (MoF) estimated the total cost of the country's 5G coverage inclusive of network hardware and infrastructure at RM12.5 billion, according to Deputy Finance Minister II Yamani Hafez Musa.

He said the total cost was estimated after Digital Nasional Bhd (DNB) expected the need for a further RM1.5 billion for additional telecommunications fibre over 10 years from Telekom Malaysia Bhd due to the country's telecommunications fibre infrastructure at a level lower than expected.

“The initial estimate of the cost of the 5G coverage network was RM11 billion.

"Of the total, RM4 billion was for network hardware and managed services for 10 years by Ericsson, RM6 billion for network infrastructure costs of other providers, namely for towers, telecommunications fibre, electricity and other costs, while a further RM1 billion was for payment of apparatus assignment fees to the Malaysian Communications and Multimedia Commission,” he said during the question-and-answer session in Parliament on Wednesday (Dec 15).

He was responding to a question from Datuk Dr A Xavier Jayakumar (independent-Kuala Langat) who wanted to know the suppliers, contractors and companies involved in the implementation of 5G technology and the overall cost of the technology transition.

He said that apart from Ericsson which had been appointed as the network hardware supplier, the suppliers, contractors and companies involved in the implementation of the 5G network generally consist of site owners, telecommunications fibre owners and electricity suppliers.

"For implementation under Phase 1A in 2021, DNB is in negotiations to appoint suppliers, contractors and companies," he added.

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