Huawei stepping up efforts for role in Malaysia's 5G rollout as country reviews tender: Report

Chinese telecommunications maker Huawei may have been shut out from markets in the United States, parts of Europe and Japan on allegations of helping China in spying on other countries, but it is not stepping down from its efforts to build 5G networks in southeast Asia. According to a Financial Times report, Huawei is among those lobbying for a role in Malaysia. The move comes as Prime Minister Anwar Ibrahim announced a review of the previous government’s decision to award Swedish company Ericsson a deal to build a state-owned 5G network in the country. The present Malaysian government has cited transparency concerns as a reason for its review. Ericsson beat Huawei and Nokia to secure a RM11bn ($2.5bn) 10-year deal for 5G network in Malaysia. The Anwar Ibrahim government stated it expects “some kind of finality” to the review by March end. Huawei is trying a mix of “soft power and outright lobbying to try to get the adoption of their systems somewhere in the rollout,” a source told FT. Malaysia’s political infighting has led to the Southeast Asian country lagging behind when it comes to rolling out 5G networks in the country. The Ericsson contract has helped implement a sole government-owned network that most mobile operators have agreed to use. It has also helped reduce costs and ensure a speedier rollout. Malaysia’s 5G plans have become a litmus test of its relations with China and western nations, as well as a challenge to the country’s reputation for respecting the sanctity of commercial contracts. Details about Ericsson’s deal with the Malaysian government: The country’s finance ministry-owned 5G network operator Digital Nasional Berhad (DNB) had awarded the contract to Ericsson. DNB had said that Ericsson’s bid was RM700mn lower than the nearest one. Despite the uncertainty caused by the review, Ericsson remains dedicated to  deploying 5G in the country. Malaysia claims that the network has permeated 50 per cent of its populated regions at the end of 2022. Prime Minister Anwar Ibrahim announced that his government is tackling a target of 80 per cent coverage by the end of 2023, making it one of the fastest 5G rollouts in the world. What can Malaysia’s government do? Malaysia’s finance ministry said that it is reviewing the tender awarded by DNB to “ensure that it is managed more transparently and competitively”. “Discussions with stakeholders are ongoing,” it added. One possible outcome of the review is that the administration allows another firm to build a rival network to Ericsson’s. Another option is that it privatises the DNB.  It may also select a second vendor besides Ericsson to assist the current rollout, as sources told the Financial Times.  A number of Malaysian telecom firms, many of whom would prefer to own the spectrum outright, have also been lobbying the government during the review, as per reports. Maxis, one of the country’s biggest mobile carriers, is one of the companies who have yet to sign up with DNB for 5G access. Huawei is Maxis’s long-term network partner and the two firms are collaborating on 5G in Malaysia. However, western countries are unhappy with the review. Amit Mital, former US National Security Council official for cyber security policy, stated to the Financial Times that “there are only a few possibilities” why the review might have been brought in now. “If Malaysia reopens this (5G contract) following a review, why would any investor or company in the future have trust and faith in the sanctity of commercial contracts in the Malaysian domain? It is important to everyone that processes be fair, open and transparent," he added. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.