In May 2023, the Malaysian government announced that it would allow the second 5G network in the country.
The rollout of Malaysia’s second 5G network may be delayed, a local newspaper reported, citing the country’s Communications Minister Fahmi Fazil.
The official said the main reason for the delay was the fact that a board of directors needs to be established before the rollout of the national 5G network Digital Nasional Berhad (DNB).
Mr Fahmi also said that a discussion on this issue will be held with the CEOs of all concerned mobile network operators during MWC 2024 in Barcelona, and that a letter requesting consideration has been sent to the Ministry of Finance’s Datuk Johan Mahmood Merikan. He said it had been sent to the Secretary.
“This process will take time as it involves legal aspects,” the minister said. “I therefore refer this matter to a select committee co-chaired by the Department of Communications and the Secretary of the Treasury.”
DNB was established by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure for use by private telecommunications companies to provide 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
In May 2023, the Malaysian government announced that it will enable the rollout of a second 5G network in 2024, with a new organization to manage Malaysia’s second 5G network. It added that it would be established. Malaysian authorities have announced that the country will move to dual 5G networks once DNB achieves 80% coverage in densely populated areas, which is expected to happen in December 2023. In the same month, Malaysia’s five major mobile phone operators signed an equity subscription agreement to acquire a combined 70% stake. Acquired DNB stock.
Under the terms of the transaction, local telecommunications companies CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International have agreed to acquire a 14% stake in DNB with an investment of approximately $50 million each. The Malaysian government said the underwriting of these shares is expected to be completed between February and April 2024, after meeting due diligence requirements.
Fazil said the government will hold a “golden” stake in DNB and the remaining 30% stake. The official also confirmed that the government has no stake in the second 5G network.
