KUALA LUMPUR: The national rollout of ultra-fast 5G network could cost Malaysia some RM20 billion over 10 years.
Digital Nasional Bhd said it expected to spend some RM16.5 billion on infrastructure and network costs over the decade.
If demand exceeds the buffer capacity or greater than what has been provided for, DNB estimated that it might need to spend another RM3.5 billion beyond 2025.
DNB chief executive officer Ralph Marshall said the RM16.5 billion comprises four main components.
About RM4 billion is for network equipment from Ericsson, RM8.5 billion for the use of existing infrastructure from operators such as Telekom Malaysia Bhd, Maxis Bhd, Celcom Axiata Bhd and edotco.
An estimated RM1 billion each is for expenses related to the Malaysian Communications and Multimedia Commission and Tenaga Nasional Bhd, while the remaining RM4 billion is for DNB's operational expenditure.
"There is an estimation of RM3.5 billion, after 2025, to raise the capability of the network that has been provided for and it will become a capacity payment which will be charged on the network operators," Marshall said at the demonstration of the integration of DNB's 5G Radio Access Network (RAN) with more than two of Malaysia's MNOs here yesterday.
The 5G services are expected to be readily available by December this year, with users in Cyberjaya, Putrajaya and certain parts of Kuala Lumpur will be able to experience the services first hand, initially.
End-users with 5G-compatible devices will be able to enjoy Internet speed at a minimum 100 Mbps.
Marshall said the current cost was entirely funded by the private sector and there was no government allocation and funding or government guarantee was involved.
On the coverage, he said DNB would install about 500 sites of 5G by end of 2021 and up to 20 per cent coverage by end of 2022.
"By 2023, we will get up to 40 per cent and by end of 2024 up to 80 per cent 5G coverage in Malaysia with about 7,500 5G sites," he added.
DNB, a state-owned single-wholesale-network under the Finance Ministry (MoF), will provide 5G services to telecommunication service providers through a wholesale agreement.
DNB assures that 5G services will be delivered to MNOs at a lower cost per gigabyte than the present 4G standard. Hence, end users will have access to ultrafast, high quality and affordable internet speeds.
This is in line with the government's mandate to accelerate the deployment of 5G, making it available throughout Malaysia in order to bridge the urban-rural digital divide.
With the successful 5G multi-operator core network integration, MNOs will offer high quality and affordable 5G services to their end users, as and when the MNOs sign up to acquire 5G wholesale services from DNB.