5 Telcos signed agreement for 70% of DNB

FIVE Malaysian Telcos, CelcomDigi, Maxis, U Mobile, Telekom Malaysia, and YTL Power International have signed share subscription agreements to acquire a collective 70% equity stake in Digital Nasional Bhd (DNB) – the country’s 5G wholesale network supplier.

Communications and digital minister Fahmi Fadzil said the government will retain the remaining 30% in DNB via the Minister of Finance Incorporated. The agreement is expected to be completed only between February and April next year.

The companies will each inject about RM233 million into DNB to meet its funding requirements.

He said a new entity – Entity B, will be the second 5G network will be formed after DNB completes the implementation of the 5G network by achieving 80% coverage in populated areas.

“As of the end of October, we have reached 73%. Upon reaching 80%, the government will announce the establishment of a new entity,” he said in a press conference after the event today.

Fahmi said the telecommunications companies will engage in discussions and come to a decision on which one among them will enter Entity B.

He said the Malaysian Communications and Multimedia Commission would be the regulatory authority “to ensure fair competition between the two networks for the benefit of the people”.

While the government retained their stake in DNB, it will not hold any in the second network, which is to be entirely commercial. – TMR