The five telecommunications companies that signed up to invest in Malaysia's 5G network wholesaler Digital Nasional Berhad (DNB) must finalize their share subscription agreements (SSAs) within the next 20 days, according to a recent report.
According to Communications Minister, Fahmi Fadzil, the first meeting of the DNB board of directors took place on Monday, with each of the five telcos represented by a board member. The telcos involved are CelcomDigi Bhd; Maxis Broadband Sdn Bhd; U Mobile Sdn Bhd; Telekom Malaysia Bhd; and YTL Power International Bhd's communications unit, YTL Communications Sdn Bhd.
Fadzil mentioned that completing the equity holdings of the telcos is a requirement for those wanting to participate in the second network. The Malaysian Communications and Multimedia Commission (MCMC) will soon announce a tender process for companies interested in bidding for the second network.
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The SSAs aim to give the telcos a combined 70% equity stake in DNB, with the government holding the remaining 30%. Each mobile network operator will inject MYR 233 million to meet DNB's funding needs. Fadzil also shared that by April 30, 2024, Malaysia's 5G network coverage of populated areas had reached 81.5%, resulting in a 39.2% adoption rate.
This marks a 3.8% increase from the previous month, totaling 13.2 million 5G accounts, including individual and enterprise accounts. Additionally, the MCMC and the Malaysian Investment Development Authority (MIDA) will sign a memorandum of understanding in the coming weeks to assist micro, small, and medium enterprises (MSMEs) in adopting 5G technology for their businesses.
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