Four Malaysian Mobile Network Operators (MNOs), CelcomDigi, Maxis, U Mobile, and YTL, have officially announced the completion of their Share Subscription Agreement (SSA) with Digital Nasional Berhad (DNB) and the Ministry of Finance Incorporated (MoF Inc) after fulfilling all conditions in the conditional SSA. This move paves the way for the transition to the 5G Dual Wholesale Network (DWN) model.
Also Read: Maxis to Complete SSA Agreement With DNB, Accelerates 5G Network Rollout
Support for 5G Transition
On June 7, 2024, Maxis stated it was ready to complete the Digital Nasional Berhad (DNB) share subscription agreement (SSA) process in accordance with the SSA's terms and to sign the Shareholders Agreement (SHA) with DNB.
"This announcement follows the statement on June 20, 2024, affirming the company's full support towards the Government's 5G Dual Network model," said CelcomDigi and U Mobile in separate statements.
SSA Paves the Way for 5G Dual Wholesale Network
"Entered into a shareholders' agreement with MoF Inc, DNB, YTL Power International Berhad (YTL), Maxis Broadband (Maxis), and U Mobile (U Mobile) to regulate the relationship of the shareholders of DNB (DNB Shareholders), and set out the basis upon which DNB will undertake the Government of Malaysia’s mandate to be a provider of 5G network and services in Malaysia and to finance, build, operate and maintain such infrastructure and utilize spectrum allocated for 5G (Shareholders’ Agreement)," the Bursa announcement of CelcomDigi said.
Also Read: Malaysia to Allow Second 5G Network Deployment, Telcos Respond
Effectively, the four telcos now collectively own 65.12 percent of DNB, which was started as a state-owned 5G Single Wholesale Network in 2021, with each MNO holding approximately a 16.28 percent stake.
Malaysia's 5G Infrastructure
The conclusion of the SSA will also pave the way for the establishment of Malaysia's second 5G network as part of the government's decision in May 2023 to shift from a Single Wholesale Network to a Dual Network model. The full participation of telcos is one of the requirements to allow the second 5G network.
Also Read: Malaysian Telcos Take 70 Percent Equity Stake in DNB
TM is expected to conclude its agreement soon. Once TM completes its SSA, the five telcos will hold a cumulative 70 percent (14 percent each), while MoF will adjust its holding to 30 percent, as stated during the signing of the SSA on December 1, 2023.
"U Mobile is delighted to have completed the SSA and signed the SHA with DNB to pave the way for the nation’s transition to a dual 5G network model," U Mobile said.
