Malaysian Telcos Take 70 Percent Equity Stake in DNB

Reported by Srikapardhi December 4th, 2023 at 05:15 pm

Malaysia's 5G rollout received a boost as five mobile network operators signed share subscription agreements to acquire equity in Digital Nasional Berhad (DNB), the country's 5G wholesale operator.

Highlights

Five MNOs inject RM 233 million each into DNB.
MNOs take up 70 percent equity stake in DNB.
Government retains 30 percent equity stake in DNB.

Malaysia's five Mobile Network Operators (MNOs) – CelcomDigi through Infranation, Maxis, U Mobile, Telekom Malaysia (TM), and YTL Power International (YTL) – signed share subscription agreements (SSAs) on Friday to acquire equity in the 5G wholesale operator Digital Nasional Berhad (DNB).

Also Read: Malaysia to Allow Second 5G Network Deployment, Telcos Respond

Strategic Collaboration

The five operators have collectively agreed to hold a 70 percent stake in DNB, with each MNO taking a 14 percent share. The Malaysian Government, represented by the Ministry of Finance (MOF), will retain the remaining 30 percent and hold a special share. According to DNB, the signing of the SSAs will also lead to each MNO investing around RM 233 million, which will be utilised to meet DNB's funding requirements.

Also Read: Telekom Malaysia Announces Termination of Share Subscription Agreement with DNB

Implementation of 5G Dual Network

The execution of SSAs by the mobile operators marks a significant achievement by the Task Force for the implementation of the 5G Dual Network in Malaysia (5G Task Force). The Task Force members comprise representatives from the Ministry of Finance, the Ministry of Communications and Digital, the Malaysian Communications and Multimedia Commission (MCMC), DNB, as well as the MNOs.

As reported by TelecomTalk, the 5G Task Force was established by the Government on May 9, 2023, with the objective of ensuring the smooth transition from the Single Wholesale Network (SWN) model to the Dual Network (DN) model.

Also Read: Malaysia’s 5G Task Force Reaches Agreement on DNB Equity Participation and 5G Access

Second 5G Operator

The finalised SSAs will enable the Malaysian government to proceed with the plan to set up a second 5G operator to compete with DNB once its 5G Network coverage, currently at 73 percent, reaches 80 percent of the population. DNB is focused on delivering the committed target of 80 percent coverage of populated areas (COPA) by the end of 2024.

Also Read: Maxis Intends Agreement to Access DNB’s 5G Infrastructure in Malaysia

DNB noted that as of the end of October 2023, Malaysia has recorded 3.6 million 5G service subscriptions, representing an adoption rate of 10.8 percent.

Reported By

Srikapardhi Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.