KUALA LUMPUR: Five mobile network operators (MNOs) have signed a share subscription agreement with Digital Nasional Bhd (DNB) that will see each of them inject about RM233mil.The capital from the MNOs – CelcomDigi (via Infranation Sdn Bhd), Maxis, U Mobile, Telekom Malaysia and YTL Power International Bhd – will be used to meet the wholesale network operator’s funding requirements.
Communications and Digital Minister Fahmi Fadzil said the next step is to assist DNB in hitting the targeted 80% coverage of populated areas (Copa) for 5G, which was at 73% as of October.
The MNOs were allocated a total of 70% equity to be evenly split among them, or 14% each.
The remaining 30% equity will remain with the government under the Finance Ministry, which will hold a Special Share in DNB. The Special Share grants the ministry certain rights pertaining to national interests, along with the ability to appoint a director that represents it.
Once the 80% Copa target is achieved, the government will announce the formation of a new commercial-only entity, which it refers to as “Entity B,” that will develop the second wholesale 5G network.
“We hope that a second network will allow for more rapid growth (of 5G) and, at the same time, allow both Malaysian citizens and the companies within the industry to benefit from 5G,” Fahmi said.
