DNB Alleges Report On 5G Deal ‘Breaking Down With Telco’ Is Untrue

Singapore media Channel News Asia recently carried news article alleging that Malaysia’s 5G plan concocted by the new government with national provider Digital Nasional Berhad is in a mess. The report claimed that all 5 telco’s who had agreed with the new terms under the dual wholesale network model are dissatisfied and have questioned on the transparency practised on the whole process.

In a response today, DNB said claims made in CNA in the article titled “Malaysia’s billion-dollar 5G roll-out stumble and breaks down between powerful telcos, state-owned operator” is misleading. It said on the alleged not being transparent in its internal operations and on the awarding of contracts to third party vendors, in particular for Ericsson’s 5G network, DNB said it strongly denies these allegations and rejects the insinuation of any impropriety in its governance and procurement practices.

The government owned entity, said the tender and procurement processes are structured according to the strictest governance standards and best practices. DNB said it has always been open and transparent in its awarding of tenders and contracts – this matter has been addressed in detail various times in Parliament and reported in the media, repeatedly
disproving the allegations.

It added the awarding of the 5G network equipment contract involved a rigorous evaluation process, with Ericsson obtaining the highest score across all prerequisites. The tender process was structured by an independent global professional services firm, and involved some 50 local and international experts from across 10 countries with 5G network rollout experience. The process also has been reviewed by multiple parties, including during reviews of the 5G network policy by the Malaysian Cabinet in 2022 and 2023.

As for the Share Subscription Agreements (SSA) signed with the 5 Mobile Network Operators (MNOs) is still ongoing it said and thus strongly denies the claims made otherwise but says it is unable to comment in specific terms due to confidentiality restrictions. Given DNB’s position as a public utility serving the public interest, it is critical for published reports to be verified and based on accurate information.

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