Five major mobile network operators (MNOs), including CelcomDigi, Maxis, U Mobile, Telekom Malaysia, and YTL, have officially signed a share subscription agreement (SSA) to acquire equities in Digital Nasional Berhad (DNB).
Bernama reports that the Communications and Digital Minister, Fahmi Fadzil, announced that the next step is for these companies to collaborate with DNB to achieve 80% 5G coverage, with 73% already achieved by 31 October. The government aims to reach 80% coverage by the year-end.
Once the target is met, a new entity may be created, with some MNOs remaining with DNB as Entity A, while others develop the second 5G network under Entity B.
Fahmi reassured that the 5G service for users would not be disrupted during this process. The wholesale price for 5G is expected to remain stable even when the second network is launched, as agreed upon by all MNOs.
The 5G adoption rate in Malaysia was reported at 10.8% as of October. The SSA, subject to due diligence, will allow MNOs to collectively own 70% of DNB’s shareholdings, with the remaining 30% held by the government through the Minister of Finance Incorporated and Special Share.
Each signing MNO will inject RM233 million into DNB to meet the financing needs for implementing the 5G network in Malaysia.
The signing of the SSA is considered a significant achievement by the Malaysia 5G Dual Network Implementation Task Force. As of October, there were 3.6 million subscribers to the 5G service in Malaysia.
