The entire 5G network rollout is expected to cost RM16.5 billion over the next 10 years. This is made up of RM12.5 billion for the 5G network equipment and infrastructure as well as RM4 billion in corporate costs.

The RM12.5 billion is broken down into a RM4 billion payment to Ericsson as the Network Equipment Provider (NEP), as well as RM8.5 billion for infrastructure development over the next 10 years. Of the RM4 billion payment to Ericsson, roughly RM2.3 billion will remain in the country. Meanwhile, of the RM8.5 billion, an estimated RM4 billion goes to site owners and tower infrastructure companies, roughly RM2.5 billion is meant for fibre leases, RM1 billion for power supply, and another estimated RM1 billion in Apparatus Assignment fees to the Malaysian Communications and Multimedia Commission (MCMC).

The vast majority of these funds will remain in-country and circulate throughout the local economy. In fact, most of these funds will flow to the domestic telecommunications ecosystem.

The RM 12.5 billion cost compares favorably against the cost estimates in the MyDIGITAL Blueprint and the National 5G Task Force Report of December 2019. The Task Force Report found that the incremental cost to upgrade just one 4G network in Malaysia to 5G would cost about RM7.5 billion. Based on the Task Force’s estimates, the deployment of the 5G Network collectively by the 4 major existing telcos would likely cost in excess of RM30 billion.

In addition to the RM12.5 billion capital expenditure (CAPEX) needed to build the 5G Coverage Network, the corporate and operating expenditure (OPEX) to run the 5G Network over the 10 years is estimated at RM4 billion. This comprises, among others, staff costs, professional fees, data centre expenditure, insurance coverage, as well as marketing and promotional expenditure. This brings the cost of rollout of the 5G network and infrastructure over the next 10 years to RM16.5 billion.