Maxis, the Malaysian mobile network operator (MNO), has confirmed its plans to sign an agreement with wholesale provider Digital Nasional Berhad (DNB) to access the 5G infrastructure in Malaysia. The company made this announcement in a statement issued to the Bursa Malaysia stock exchange.
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Maxis' Intention to Access DNB's 5G Infrastructure
Initially, Maxis announced its intention to seek shareholders' approval for the proposed entry into the Access Agreement with DNB on November 2, 2022. However, the seeking of approval was postponed until after the finalization of the 5G network implementation policy by the Government of Malaysia on January 20, 2023.
On May 3, 2023, the Government announced that the implementation of the 5G network in Malaysia will continue through DNB until it achieves 80 percent coverage in populated areas by the end of 2023 under the initial rollout phase. Subsequently, the single wholesale network model will transition to a dual network model, with a new entity established to develop the second 5G network in the country, as reported by TelecomTalk.
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National 5G Wholesale Network Product
Based on this announcement, Maxis believes it is in the company's best interest to enter into the Access Agreement with DNB. Maxis Broadband, a subsidiary of Maxis, intends to execute the Access Agreement to gain access to the 5G products and services provided by DNB on a wholesale basis.
To gain access to any other 5G Products and Services provided by DNB on a wholesale basis, Maxis Broadband must subscribe to the National 5G Wholesale Network Product, which utilizes the DNB 5G Access Network for cellular network services.
According to the exchange filing, Maxis Group is expected to incur operating expenses of approximately RM 360 million per annum for the National 5G Wholesale Network Product offered by DNB.
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The Government appointed DNB as the single neutral wholesale network provider responsible for the nationwide deployment of 5G infrastructure. The Access Agreement between Maxis and DNB will outline the terms and conditions for accessing the 5G Products and Services, which are primarily set out in the reference access offer published by DNB on its official website.
