[UPDATED] U Mobile says no to DNB stake

KUALA LUMPUR – U Mobile will not take a stake in Finance Ministry’s Digital Nasional Bhd (DNB) but will continue to provide 5G services via its access to the special purpose vehicle’s network infrastructure.  

In a statement today, U Mobile said it is in discussion to finalise the 5G access agreement with DNB along with other telcos.

“U Mobile has had extensive discussions and deliberations on the matter and after taking into consideration the terms of the investment as it currently stands, the telco has decided that it will not pursue the investment option in DNB.”

“U Mobile has full faith that DNB will be on schedule for the deployment of quality 5G network infrastructure and that it will carry out the government’s mandate to provide wholesale 5G coverage and capacity on an equitable and non-discriminatory basis via the 5G access agreement.”

The telco added that it has been testing 5G services and looking forward to its customers benefiting from the network and its 5G-ready products and services soon.

This confirmed a report on Wednesday that U Mobile and Maxis Bhd rejected the offer to take up a stake in DNB after months of negotiation.

Two sources were quoted as saying that the two telco companies do not see the benefits of inking the agreement but are still open to deals that allow access to the 5G network.

On the same day, DNB said the execution of share subscription agreements with six telcos would be concluded soon.

According to DNB’s statement, one mobile network operator (MNO) decided to not proceed, while the other did not respond. 

“Accordingly, revisions to the transaction documents (SSAs and shareholder agreements) need to be made to allow for the equity subscription by four MNOs (instead of six), which consequently require further internal approvals from the four MNOs.  

“The four MNOs remain interested, and it is envisaged that the equity participation process will progress to completion with the MNOs concerned.” 

It added that the discussions on the 5G access agreements are progressing with all six MNOs and under a separate and independent track.

DNB is a Minister of Finance Inc. company, mandated to deploy Malaysia’s 5G network and infrastructure on an accelerated schedule. – The Vibes, September 2, 2022