KUALA LUMPUR: Digital Nasional Bhd (DNB) has provided some details over the tender process leading to the appointment of Ericsson (Malaysia) Sdn Bhd as its strategic partner in the national 5G network project.

       In a statement, the government-owned special purpose vehicle overseeing the deployment of the 5G network said the tender process, which began in April this year, was both rigorous and competitive.

       "DNB and Ericsson are on track to launch Malaysia’s 5G network in areas within Kuala Lumpur, Putrajaya and Cyberjaya by December 2021, with the objective of achieving 80% nationwide population coverage by 2024," it added.

       The design, build and maintenance of the Malaysian 5G network managed by Ericsson is estimated to cost RM11bil, which DNB revealed costs about RM700mil less than the total cost of ownership of the next closest bid.

       In its statement, DNB said the tender process was structured by independent professional services firm Ernst & Young Consulting Sdn Bhd.

       This was conducted according to global standards and involved four panels comprising 50 local and international experts from across 10 countries with current 5G network rollout experience.

       Of the 14 network equipment providers evaluated, eight were shortlisted and invited to submit their bids for the tender.

       Those selected for the shortlist were evaluated on their proven credentials in several areas including previous successes in 5G deployment, availability of enhanced security for users and platforms, an established Malaysian presence and business ecosystem, ownership of locally based resources and an effective plan for the transfer of knowledge to domestic affiliates.

       However, only four of the companies shortlisted submitted their bids.

       According to DNB, the tender evaluation team comprised internal and external independent industry experts and experienced professionals.

       The tender results were then deliberated extensively by the Board Tender Committee and the Board of DNB.

       Utilising criteria identified with the help of industry feedback, Ericsson was ranked the highest in the technical, commercial and socioeconomic components of the evaluation.

       "The strictest standards of governance were adopted throughout the tender process as advised and facilitated by EY Consulting," said DNB.