KUALA LUMPUR – The government is involving telecommunication companies in selecting candidates for the chief executive of Digital Nasional Bhd (DNB).
Industry insiders noted that the appointment of the CEO for DNB, the wholesale network provider for the nation’s 5G roll-out, is currently on hold as both telcos and DNB prepare to finalise a crucial share subscription agreement (SSA) later this month.
In a recent announcement, Communications and Digital Minister Fahmi Fadzil revealed that the signing of the SSA between DNB and the telcos, also known as mobile network operators (MNOs), is expected to occur this month, pending decisions from the telcos’ respective boards. This development follows a meeting between the minister and the telcos’ CEOs.
DNB, established in early March 2021, is mandated to accelerate the deployment of 5G infrastructure and networks in Malaysia. It currently holds the exclusive 5G spectrum, with a goal of achieving 80% coverage by the end of 2023.
To support the country’s 5G network development, five MNOs – CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd – have agreed to take up equity stakes in DNB.
Fahmi, however, reiterated that the Finance Ministry will oversee the appointment of DNB’s chief executive.
“In terms of the structure, it (the DNB CEO’s appointment) is under the MoF,” Fahmi said, as quoted by Bernama last week.
With the chief executive role being vacant for more than half a year, the industry insiders said the delay in appointing a new CEO for DNB is not solely based on procedural matters, suggesting that DNB and the government are keen to ensure that the telcos are content with the chosen candidate for the role.
This decision is pivotal as the CEO will be crucial in working closely with the telcos to expedite the 5G roll-out, making a harmonious relationship with them a top priority.
“DNB and the government understand that fostering a strong, cooperative relationship with the telcos is imperative for the successful deployment of 5G,” a source said.
“They want to ensure the telcos are comfortable with the CEO choice, as they’ll be working closely together.”
Another insider said that ensuring a smooth collaboration between DNB and the telcos is essential for delivering the benefits of 5G to the nation. The delay in the CEO appointment reflects a commitment to this partnership.
“This delay signifies a positive approach taken by DNB and the government. They are placing a premium on a CEO that can facilitate a strong working relationship with the telcos, as this partnership will be pivotal in achieving the 5G goals.”
Augustus Ralph Marshall’s tenure as DNB chief executive concluded in the first quarter of the year. His contract officially ended on March 11 without an extension.
The incoming CEO faces the substantial challenge of aligning with the unity government’s ambitious target of achieving 80% 5G coverage by the end of this year, a significant acceleration compared to the previous goal of reaching this milestone by the end of 2024.
Marshall, known for his leadership in the roll-out of Maxis and Astro Networks, assumed the position of DNB’s chief executive in March 2021.
Marshall’s departure from DNB came at a pivotal juncture for the 5G network roll-out, as Malaysia seeks to catch up with its regional counterparts after lagging behind. Malaysian mobile consumers have faced comparatively higher rates for 4G connectivity in the Asean region.
While awaiting the finalisation of the SSA and the subsequent CEO appointment, Malaysia’s 5G coverage has made progressive strides. As of September 30, 5G coverage in populated areas has already reached 70.2%, and the nation remains on track to achieve the 80% coverage target by the end of the year. – November 7, 2023