Merger won’t give telcos more power over 5G decisions: DNB

KUALA LUMPUR – Telecommunication companies that undergo mergers will not have a bigger say than others in the country’s 5G rollout plans, even if they collectively hold a larger equity stake in Digital Nasional Bhd (DNB) than their rivals. 

This was confirmed by DNB chief executive Ralph Marshall, who said there would be no change to the policies and processes of the Finance Ministry-owned special purpose vehicle. 

He affirmed that ownership of shares in DNB will have no bearing on how the telecommunication companies operate themselves. 

“The policies, objectives and deliverables of DNB will all remain the same,” he told the press after attending a special briefing on the 5G implementation here today. 

The briefing was also attended by Communications and Multimedia Minister Tan Sri Annuar Musa and Deputy Finance Minister I Datuk Mohd Shahar Abdullah. 

Marshall was responding to questions on what the imminent merger between Celcom and Digi in the coming months would mean to the equity shares of mobile network operators (MNOs) in DNB. 

Earlier today, The Vibes reported that the Finance Ministry will continue to hold the golden share of DNB despite all six major mobile carriers finally agreeing to join the government’s 5G rollout programme. 

A source said the telcos will only be able to individually hold up to a maximum of 12% equity in DNB. 

Marshall said even if the Celcom-Digi merger goes through – which will see them have about 23% equity – the board of DNB, as well as shareholders, will still have full say in decision-making processes. 

He added that the final details of the company’s equity stake are expected to be released within the next couple of months. 

“It is still being finalised. The six MNOs (mobile network operators) have signed the reference access offer (RAO) agreement, as well as the term sheet, which will then lead to a shareholders' agreement and subsequently, completion of the arrangement.”

According to Marshall, DNB has presently rolled out 5G services to about 25% of areas in Malaysia, and expects to achieve a 40% coverage by the end of the year. 

Separately, he dismissed a media report claiming telcos will be offered discounted wholesale pricing for 5G until DNB achieves 80% of nationwide coverage, expected by 2024, as erroneous. 

Instead, Marshall explained that under the current arrangement, companies that join DNB in the network rollout are already offered “special prices”. 

“We do have 5G available for free until June 30, which was yesterday. Now, whoever offers 5G services will end up having to pay for it until they sign on the access agreement. 

“Once the agreement is signed, I would think it would be reasonable to expect some availability of 5G at special prices or hope it will be free, depending on the banks, at least until August 31.” – The Vibes, July 1, 2022