KUALA LUMPUR – Four major mobile network operators (MNOs) have today executed share subscription agreements (SSAs) to take up equity stakes in 5G single wholesale network provider Digital Nasional Bhd (DNB).
In a statement, DNB said, Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd (YES), and Telekom Malaysia Bhd (TM), have taken up 65% of equity in DNB.
DNB said Celcom Axiata has taken up 12.5% in stakes, followed by Digi Telecommunications (12.5%), YTL Communications (20%), and TM (20%).
It added that the government will retain the other 35% and hold a golden share, which grants various rights and privileges and covers areas such as ownership, sale, or transfer of shares on the part of the government.
The 12.5% shareholding each for Celcom Axiata and Digi Telecommunications, DNB said, is in recognition of their imminent merger.
DNB noted that under the terms of the SSA and the agreed governance structure between the parties, no single MNO can hold more than a 20% shareholding in DNB.
It said in the event of a merger between the MNOs, the merged entity cannot hold more than a 25% shareholding in DNB.
The development on subscription agreements comes after extensive discussions between the MNOs and DNB, with some of the telcos insisting on having an alternative 5G provider under a dual-wholesale network system.
However, DNB now anticipates that the MNOs who signed on will make 5G services available to their end users from October 2022 onwards.
During his Budget 2023 speech this afternoon, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said DNB is planning to develop RM1.3 billion in infrastructure next year to roll out high-speed 5G broadband connectivity nationwide.
Tengku Zafrul said this investment will allow DNB – which is the government’s single wholesale network for 5G services – to expand high-speed broadband connectivity to 70% of populated areas next year.
DNB Chairman Datuk Seri Asri Hamidon said he was “pleased” that the MNOs have taken up the equity offered by the government in executing their SSAs with DNB.
“All parties will now work towards completing the conditions precedent in the SSAs, including executing the Access Agreements as soon as possible,” Asri said.
“I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global ‘roaming’ customers.”
“The MNOs in particular, have a crucial role to play in ensuring the accelerated adoption of 5G among end users,”
“Over the longer term, they will be responsible for bringing to market a host of new 5G-enabled products and services which will have a positive impact on many businesses, be it small, medium or large, as well as the government.”
Meanwhile, DNB said it will continue to deploy the 5G network and infrastructure on an accelerated schedule, with a target of 80% coverage of populated areas by 2024.
“As of today, the 5G network has achieved 33% coverage of populated areas as against a target of approximately 40% by end-2022. The testing and integration of 5G sites by the MNOs have progressed well and I believe they are ready to provide 5G services to end-users located in areas where 5G infrastructure is currently available,” Asri said.
“In addition, the local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia. As such, we are encouraged by the establishment of the infrastructure to facilitate the rapid adoption of 5G by the rakyat, businesses, and government.” – The Vibes, October 7, 2022