KUALA LUMPUR: Malaysia's 5G rollout was awarded to Digital Nasional Bhd (DNB) despite objections from the Communications and Multimedia Ministry.
Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said the ministry was instructed by the Finance Ministry (MOF) to award the contract to DNB without any consultation.
He said the Communications and Multimedia Ministry had initially raised questions about pricing.
"We raised questions about the pricing as DNB will be selling to telecommunication companies but DNB assured us that the price would be cheaper than 4G. That was their guarantee.
"It's quite miraculous that DNB would be selling the 5G spectrum at a lower price to telcos but we had to agree," he told the Dewan Rakyat today.
Zahidi was responding to a question from Syed Ibrahim Syed Noh (Ledang - PH) on when DNB would be briefing the House on its plans for the nation's 5G setup.
Unlike other countries that allow telcos to set up their own 5G infrastructure, the government had decided to form a special purpose vehicle, DNB, to build the new spectrum.
Telcos had previously complained over the supposed lack of transparency on the project.
Zahidi said the Communications and Multimedia Ministry had initially wanted to consult with DNB but after MOF's intervention, they had to accept it.
"We have, however, instructed DNB to work with Telekom Malaysia as they have the IT backbone. We didn't see what DNB could do as it had nothing and had to start from scratch.
"DNB doesn't even have any (telecommunication) towers," said Zahidi.
Fahmi Fadzil (Lembah Pantai-PH) then asked how DNB had managed to secure the project when it had nothing, to which Zahidi replied that the question should be posed to MOF.
"You have to ask MOF on that because it's their investment. We didn't invest. Our work is communications but MOF wants to do our job, so we let them.
"As such, we will let them do it and question them. We wanted to give the 5G spectrum to telcos as they already have the backbone and it would be faster. However, DNB wanted to do it and said that the 4G infrastructure is incomplete as it was done by telcos."
In July, DNB signed a contract with Ericsson to design and build the 5G infrastructure for RM11 billion. Neither DNB nor MOF has told the public how it plans to finance the project.
Zahidi earlier said that as the issue was a matter of urgent public interest, MPs would be called for a briefing on the project by DNB soon.