As per recent reports, all major wireless service carriers in Malaysia - Celcom Axiata, DiGi Telecommunications, YTL Communications, and Telekom Malaysia, have decided to purchase stock in Digital Nasional Berhad (DNB), a state-run 5G provider. The new deadline for settling conditions on network quality, conflict resolution, and pricing, according to a government statement, is the end of the month.
Maxis and U Mobile Are the Last Two Providers To Sign Up
Based on a Reuters report, the government would possess outstanding shares in DNB and control over rights and privileges as well as the ownership, sale, and transfer of shares. The four operators agreed to raise the stake to 70% from the previous 60% in DNB. The two providers who have not yet signed on are Maxis and U Mobile. Both companies departed from talks in August, further delaying the rollout of competitive 5G. Operators and DNB are still negotiating pricing and deployment strategies.
As per DNB, as the two companies are planning to merge, YTL Communications and Telekom Malaysia would each hold 20% of the company, while Celcom Axiata and Digi Telecommunications would each hold 12.5%. If the deal doesn't go through, Digi planned to expand its stake to 17.5%. The deal is scheduled to complete in 2023.
Operators' opposition persisted even after the stake offer. According to some news sources, the impasse may have been broken when the government issued a warning that international players would want to participate. The DNB concept has not been well received by the majority of carriers. Some even said it would be preferable to have two 5G wholesale networks. Non-binding term papers were reportedly signed at the end of June, according to The Straits Times. Concerning the generation of jobs and economic value, the government has great expectations for 5G. However, among other difficulties, the absence of competition and a challenging global economic climate may still pose obstacles to DNB's success.