FIVE mobile network operators (MNOs) today signed a share subscription agreement (SSA) to hold equities in Digital Nasional Bhd (DNB). 

They are CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, Telekom Malaysia Bhd and YTL Power International Bhd.

Communications and Digital Minister Fahmi Fadzil said the next step after the signing of the SSA is for these companies to help DNB reach 80% in 5G coverage.

“As of October 31, we have achieved 73% coverage of populated areas, and there is another 7% to go to reach 80%.

“This figure is important because after we hit 80%, the government will announce that a new entity can be created with a number of the MNOs remaining with DNB as entity A, while another number of MNOs will begin operations and develop the second 5G network under entity B,” he told a media conference in Kuala Lumpur today.

The government had earlier targeted an 80% coverage of populated areas for the 5G network by the end of this year.

Fahmi also assured no disruptions in 5G services both throughout the process of completing the 80% coverage and when entity B is established and the second network is developed.

He said all MNOs had agreed that the wholesale price for 5G would not increase when the second network is launched.

“On the part of the Communications and Digital Ministry) and MCMC (Malaysian Communications and Multimedia Commission), we will continue to monitor the implementation to ensure no problems will arise.

“The Special Committee set up on May 9 for 5G implementation will also monitor and invite all parties for discussions to ensure that in terms of implementation, there will be no problems that cannot be resolved together,” he added.

Apart from this, Fahmi said the 5G adoption rate in Malaysia was 10.8% as of the end of October.

Meanwhile, DNB said in a statement that the signing of the SSA, which is subject to due diligence, would enable MNOs to own 70% of shareholdings in DNB collectively or 14% shareholdings individually.

It said the government, through the Minister of Finance Incorporated, would hold the remaining 30% equities in DNB and Special Share.

“Every MNO that signed this SSA will inject RM233 million into DNB, which will be used to meet the financing needs for implementing the 5G network in Malaysia,” the statement said.

It said the inking of the SSA marked an important achievement by the Malaysia 5G Dual Network Implementation Task Force, which consists of members from the Finance Ministry, the Communications and Digital Ministry, MCMC, DNB and MNOs.

As of the end of last October, there were 3.6 million 5G service subscribers in the country, DNB said. – Bernama, December 1, 2023.