Operators that have completed SSAs with DNB include CelcomDigi, Maxis, U Mobile and YTL.
Malaysia’s state-run 5G network Digital Nasional Berhad (DNB) has announced that four telecom operators have completed share underwriting agreements (SSAs) to acquire a 16.3% stake each, local media reported.
Operators that have completed the SSA include CelcomDigi, Maxis, U Mobile and YTL.
According to the report, Telekom Malaysia (TM) is the only telco that has not yet signed an SSA with DNB as it needs to obtain shareholder approval in accordance with governance requirements. Due to this, Treasury holds 34.9% of DNB’s shares, while the other telcos’ shares have increased to 16.3% until TM finally signs the agreement. Once TM’s SSA is completed, Treasury’s shareholding will be reduced to 30%, leaving all telcos holding a combined 70% stake in DNB.
The SSA stipulates that operators will have the option to opt out of DNBs to join the planned second phase of 5G networks. Maxis, U Mobile, YTL and CelcomDigi have all issued statements of strong interest in joining the second phase of 5G networks.
Celcomdiji CEO Idham Nawawi confirmed in a statement that the company was “eager to move to the next stage of the transition to the 5G dual network model and participate in the upcoming process of building a second 5G network.”
“We believe we are in a strong position to lead the development of Malaysia’s second 5G network,” Nawawi added.
The country’s Communications Minister Fahmi Fadzil announced on June 21 that he had instructed the Malaysian Communications and Multimedia Commission (MCMC) to begin the selection and appointment of an operator for the second 5G network.
Malaysian authorities had announced in May 2023 that the country would move to a dual 5G network once DNB achieved 80% coverage in densely populated areas, which happened in December 2023.
As of the end of April, DNB’s 5G network had reached 81.5% of the total population area, with a deployment rate of 39.2%. As of the end of April, the number of 5G subscriptions nationwide reached a total of 13.2 million. Of the total 5G subscriptions, there were 12.7 million private users and 422,609 enterprises.
DNB was established in 2021 by the Malaysian government as a special purpose vehicle to develop the country’s 5G network infrastructure. Currently, private telecommunications companies are using this infrastructure to provide 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
The government had previously said the second phase of 5G networks would mainly focus on additional aspects such as the implementation of 5G technology across various vertical sectors.
