FOUR mobile network operators (MNOs) have today executed share subscription agreements (SSAs) to take up equity stakes in Digital Nasional Bhd (DNB).

In a statement, DNB said the MNOs – Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd and Telekom Malaysia Bhd (TM) – have taken up 65% equity in DNB.

It said Celcom Axiata has taken up a 12.5% stake, followed by Digi Telecommunications (12.5%), YTL Communications (20%) and TM (20%).

“The government will retain the remaining 35% and hold a golden share. The golden share grants various rights and privileges and covers areas such as ownership, sale or transfer of shares on the part of the government,” it said.

“The 12.5% shareholding each for Celcom Axiata and Digi Telecommunications is in recognition of their imminent merger.

“Under the terms of the SSA and the agreed governance structure between the parties, no single MNO can hold more than a 20% shareholding in DNB, and in the event of a merger between the MNOs, the merged entity cannot hold more than a 25% shareholding in DNB.”

It said the take-up marks a positive development following extensive discussions between the MNOs and DNB.

It is anticipated that the MNOs will make 5G services available to their end users from this month onwards.

DNB also said it will continue to deploy the 5G network and infrastructure on an accelerated schedule, with a target of 80% coverage of populated areas by 2024.

DNB chairman Asri Hamidon said as of today, the 5G network has achieved 33% coverage of populated areas as against a target of about 40% by end-2022.

He said the testing and integration of 5G sites by the MNOs have progressed well.

“I believe they are ready to provide 5G services to end users located in areas where 5G infrastructure is available,” he said.

“In addition, the local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia.

“As such, we are encouraged by the establishment of the infrastructure to facilitate the rapid adoption of 5G by the people, businesses and government.” – October 7, 2022.