KUALA LUMPUR: The privatisation of Digital Nasional Bhd (DNB) is expected to reduce the government’s financial liabilities and associated risks as the 5G network deployment transitions from a policy-driven phase to a fully commercial stage, according to an industry expert.
Universiti Teknologi Malaysia associate professor at the Faculty of Electrical Engineering, Dr Leow Chee Yen, said that since the major shareholders are now service providers that directly interface with end users, they have first-hand knowledge of current market conditions and actual demand.
“It is expected that DNB will become more commercially competitive to ensure the profitability of the 5G network. This benefits the telecommunication service providers, while Malaysians will be able to enjoy a cost-effective and high-quality network,” he told Bernama.
Last Friday, CelcomDigi Bhd
and Maxis Bhd each paid RM327.87 million to acquire their agreed proportions of Minister of Finance Incorporated (MoF Inc) shares in DNB. In a filing with Bursa Malaysia, CelcomDigi announced it will assume its proportionate share of the MoF Inc loan, along with accrued interest and additional shareholder advances totalling RM161.17mil which form part of the option price.
Leow also noted that the current 5G network mainly serves mobile broadband users, although the technology is designed to support industry and enterprises through its capability to connect massive Internet of Things devices and support mission-critical applications.
However, he said, industry and enterprise adoption remains limited, mainly due to the lack of commercially successful use cases and high investment barriers.
That said, Leow suggested that DNB work closely with service providers, industry players, enterprises, the government and the wider community to develop innovative commercial use cases for 5G in order to unlock the network’s full potential.
He added that a fully private-led DNB is expected to be more commercially competitive and strategically adaptive to market demand in the telecommunications sector, as the acquisition would enable it to quickly adopt 5G technology updates and develop innovative solutions to reduce network operating costs, enhance efficiency and increase network utilisation.
