KUALA LUMPUR – The share subscription agreement on equity stakes in 5G special purpose vehicle Digital Nasional Bhd (DNB) should be signed by telecommunication (telco) companies in the coming weeks, said Communications and Digital Minister Fahmi Fadzil.
He said if everything goes well, the signing should take place “before the middle of this month”, following which additional discussions on a second 5G network provider might be held.
“I believe we’re anticipating the signing of the share subscription agreement for take up of equity on DNB to take place first.
“Further discussions on a second network (provider) will be at a more advanced stage. The first step is the (share subscription agreement) signing,” the minister told reporters after the launch of the nation’s first 5G private network by Petronas here.
When asked on whether the government has begun receiving request for proposals (RFPs) for a second 5G network service provider, Fahmi said discussions on the matter are ongoing.
“I’m not in a position to divulge more information on this because the conversation is very dynamic. (Discussions) are being facilitated by the 5G taskforce co-chaired by the Communications and Digital Ministry.
“We have not yet come to a decision as to which MNO (mobile network operator) will be in which entity – Entity A, which is DNB, or Entity B.”
Fahmi also said there have been no talks on the government divesting its stake in DNB, if it ever secures a second 5G network provider.
“DNB will still be there. If the question is whether the government will still retain a stake in DNB, yes, for the time being there has not been a decision by the cabinet (to do otherwise).”
On July 21, Fahmi said CelcomDigi, Maxis, Telekom Malaysia, U Mobile and YTL Communications would finalise negotiations on equity stakes in DNB to support the development of the country’s 5G network.
This is part of the government’s plan to introduce a second 5G network through a new entity after the 5G implementation model was changed from a single wholesale network (SWN) to a dual network.
The development of the 5G network under the SWN model through DNB is said to continue until it reaches 80% coverage of populated areas, before switching to a dual-network model.
Deputy Prime Minister Datuk Seri Fadillah Yusof, who launched today’s event, said as of September, the nation’s 5G network coverage in populated areas stands at 70.2%.
“We are on track to achieve the target of 80% 5G network coverage in populated areas by the end of 2023 before transitioning from the SWN to a dual wholesale network.” – October 6, 2023