DNB was established by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network.
The Malaysian government is set to begin discussions next week on moving to a dual 5G network plan, local newspapers reported, citing the country’s Communications Minister Fahmi Fadzil.
“We first need to convene a meeting to assess the current situation. We are planning to hold the meeting within the coming week,” Fazil said, adding that representatives from the finance and digital ministries would be present to discuss plans for a dual 5G network.
Officials confirmed that a so-called “5G Task Force” will meet next week to begin discussing the issue.
A few weeks ago, Fadzil said the rollout of the second 5G network was being delayed due to the formation of a new board for state-run 5G network Digital Nasional Berhad (DNB).
DNB was established in 2021 by the Malaysian government as a special purpose vehicle to develop the country’s 5G network infrastructure, which will be used by private telecommunications companies to provide 5G services to customers. DNB’s 5G network was deployed by Ericsson.
The Malaysian government announced in May 2023 that it would allow the rollout of a second 5G network in 2024, adding that a new organization would be established to manage Malaysia’s second 5G network. At the time, Fadzil said the decision to allow a second 5G network in the country was made with the aim of avoiding single points of failure and establishing redundancy for 5G services.
Malaysian officials had said the country would move to a dual 5G network once DNB achieved 80% coverage in densely populated areas, which would be December 2023. That month, Malaysia’s five largest mobile operators signed an equity subscription agreement to acquire a combined 70% stake in DNB.
Under the terms of the agreement, domestic operators Celcom Digi, Maxis, U Mobile, Telekom Malaysia and YTL Power International have agreed to invest approximately $50 million each to acquire a 14% stake in DNB. According to the Malaysian government, these subscriptions are expected to be completed between February and April 2024 after completing due diligence requirements.
Fadzil had previously said the Malaysian government would hold a “golden” share in DNB and the remaining 30% stake. The official also confirmed that the government would not take a stake in the second 5G network.
