KUALA LUMPUR: The corporate restructuring of Digital Nasional Bhd (DNB) has commenced, following the government's decision to transition to a dual 5G network model, says the Digital Ministry.
“The shift from a Single Wholesale Network (SWN) to a dual 5G network model requires a significant transformation in DNB’s business operations, as the company was originally established based on the SWN model,” the ministry stated in a parliamentary written reply dated Feb 12.
“As such, the restructuring process has begun, involving the updating of business, funding, and operational plans, alongside the implementation of a radical cost optimisation strategy,” it added.
DNB is working closely with its shareholder telcos and experienced consultants to ensure its long-term sustainability and success. The government remains committed to assisting DNB through this transition and ensuring that both 5G networks under the dual model thrive, the ministry stated.
The decision to adopt a dual network 5G model aims to enable full participation from telecommunication companies in the national 5G rollout.
“This approach will foster healthy competition and enhance the quality of telecommunications services,” the ministry said.
Currently, the government holds a 34.9% stake in DNB along with a golden share. However, under the shareholders’ agreement, with the transition to the dual network model, Putrajaya will be compensated for relinquishing its stake to telcos that are existing DNB shareholders.
Additionally, these telcos will be responsible for repaying the government loans injected into DNB.
“The government-guaranteed loans will be refinanced, releasing the government from its guarantee obligations,” the ministry stated.
The response was given in reply to Datuk Wan Saiful Wan Jan (PN-Tasek Gelugor), who had inquired about the government’s strategy to ensure DNB’s sustainability and financial returns.
