KUALA LUMPUR – Five mobile network operators (MNOs) have inked the share subscription agreements to take up a total of 70% equity stakes in Digital Nasional Bhd (DNB), the government’s 5G special purpose vehicle.
The signing, which was commemorated during an event at the TRX Exchange 106, here, today, will see each MNO channelling approximately RM233 million to meet DNB’s funding requirements.
Present at the event was Communications and Digital Minister Fahmi Fadzil, who said that the signing is a historic moment showcasing the effective cooperation between Putrajaya and the private sector.
“Even though we have gotten this far, we still have a long way to go (as) this is just the beginning,” the minister said during a press conference after the event.
“The Communications and Digital Ministry and the Malaysian Communications and Multimedia Commission (MCMC) will continue to oversee matters to ensure that no untoward issues arise.”
The MNOs involved in the signing were CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, Telekom Malaysia Bhd and YTL Powers International Bhd.
The agreements give effect to the MNOs’ collective subscription, subject to satisfactory due diligence, of 70% equity or 14% each in DNB.
Through the Minister of Finance Incorporated (MoF Inc), the government will retain a 30% stake in DNB.
According to an FAQ document provided to the media, the share subscription agreements are expected to be completed between February and April next year.
Meanwhile, Fahmi also said that as of the end of October, 5G coverage has reached 73% in populated areas.
This, he said, is a significant figure as upon reaching its targeted goal of 80% coverage by the end of this year, the government will be able to announce the establishment of a second entity (Entity B) part of its 5G dual network model, facilitating the transition from its current single wholesale network model.
“It has been decided that once 80% 5G coverage in populated areas has been achieved, several MNOs will remain with DNB as Entity A, while certain other MNOs will develop the second 5G network under Entity B,” Fahmi said.
“This is a process that will take some time, but what matters is that citizens who are enjoying 5G services now will not experience disruptions to their services because of this.”
The minister also confirmed that the government will not hold any stakes in the second entity, which will be a “completely commercial” enterprise.
Besides assuring that the wholesale prices for 5G services will not be upped by MNOs once the dual network model is established, Fahmi noted that the 5G adoption rate is at 10.3% as of October.
He also said that his ministry, with the help of the MCMC, will be keeping a supervisory eye on both entities to ensure healthy competition that best benefits the people. – December 1, 2023