KUALA LUMPUR – Rumours are abound within the telco industry that Axiata Group Bhd chief executive officer Datuk Izzaddin Idris is on the way out from his current position.
Insider sources told The Vibes that this is due to the fact that he has been reluctant to buy in and accept the government’s Digital Nasional Bhd (DNB) 5G roll-out plan, despite the fact that Axiata is a government-linked company (GLC).
“I was told that an announcement will be made today. I cannot confirm it though.
“At yesterday’s Axiata annual general meeting, on the resolution to reappoint him as a director, I was told that Khazanah actually abstained from voting,” said the source who requested anonymity.
Malaysia’s sovereign wealth fund Khazanah Nasional Bhd (Khazanah) is a major shareholder of Axiata.
The writing on the wall says that if they have abstained from voting, they no longer support Izzaddin as Axiata’s chief.
“It’s as good as saying goodbye to Izzaddin,” hinted the source.
Axiata is the parent group for local telco giant Celcom.
The four major telcos – Celcom, DiGi, Maxis, and U Mobile, collectively known in the industry by its CDMU moniker – have been seen to be lockstep in their resistance to the implementation of the national 5G service by DNB.
Government-owned DNB has been tasked to build the nation’s infrastructure for 5G, which is the next exciting stage of mobile telephony, and telcos shall subscribe for access and subsequently offer products and services to consumers.
From the start, CDMU members resisted the DNB plan and had proposed their own competing networks, suggesting that it was not a well-thought-out plan.
Instead, they proposed their own plan, which was seen more as an act of self-preservation than for the good of the nation.
When the government persisted, they grudgingly accepted it, but soon coalesced into the CDMU we know now. They took unified stands on everything related to 5G and DNB.
They even came out with common statements that carried all their brands, spoke in one voice, and requested meetings with the authorities, interestingly excluding all other industry players, including the biggest of them all: Telekom Malaysia Bhd.
They raised doubts over the terms offered to them for access to DNB’s 5G network; incidentally, these terms were formulated by the Malaysian Communications and Multimedia Commission.
To date, they have not signed up with DNB, which in essence is a very public display of their resistance and influence. CDMU has collectively about over 85% share of the mobile telecommunication industry.
Thus far, only Telekom Malaysia and YTL have signed up to offer 5G services. – The Vibes, May 27, 2022
