MALAYSIA’S 5G roll-out has suffered a setback after two telco companies declined to take a stake in Digital Nasional Bhd (DNB), Reuters reported. 

Reuters, quoting sources, said Maxis and U Mobile do not plan to sign on for a stake in the project as they do not see the benefit of being a minority shareholder. 

“(The parties) will have to try and restructure the deal,” said one person.

However, both companies will remain in talks with DNB to access the 5G network, the sources said.

The government had wanted six of the country’s mobile operators to agree on taking a combined 70% stake in DNB. Today was the deadline for an agreement after months of talks. 

Previously, a proposal by Maxis, U Mobile, Celcom Axiata and DiGi Telecommunications for the four companies to take a combined majority was rejected by the government. 

Earlier today, Malaysian Communications and Multimedia Commission chief operating officer Mohd Ali Hanafiah Mohd Yunus said telco companies have started on the 5G technical test. 

He said the tests comprised five phases in total and they are currently at phase 4, while phase 5 includes aspects of determining the package. 

On July 1, Communications and Multimedia Minister Annuar Musa was reported to have said that users could expect 5G network services in stages by September at the latest, with six companies having signed agreements to take up equities in DNB.

For now, only YTL Communications, through Yes, is providing 5G services to users in Malaysia. 

DNB, which is the government’s special purpose company for the rollout of 5G, had previously announced the availability of the network in certain areas in Putrajaya, Cyberjaya and Kuala Lumpur. – August 31, 2022.