Remaining 4 Telcos Could Be Given Bigger Stake In DNB

Communication Minister, Tan Sri Annuar Musa has reiterated that the government will ensure the implementation of fifth-generation mobile network services goes according to plan despite two mobile network operators (MNO) deciding not to take a stake in Digital Nasional Bhd (DNB).

He added following the withdrawal of Maxis and U Mobile, negotiations with four other MNOs will continue and are expected to conclude within two weeks, adding that they involve adjustments in the agreement documents. 

The government had decided in the original agreement that the majority (stakeholders) should come from the private sector, but the other four companies do not have 50 percent (stake). The companies will also need to go back to their boards as they had initially given approval based on an 11 percent subscription, so if the government was to offer more, let’s say 15 to 16 percent, they have to go back to their boards.

With this in play, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz mentioned that the offer is open to other industry players interested in acquiring a stake in DNB. Annuar Musa said the importance now is that the 5G rollout must remain on track to meet the priority of achieving 80 percent 5G coverage in populated areas by 2024.  

The Minister expects the matter can be resolved within one to two weeks, the related companies can offer 5G services for areas where infrastructure has been completed without delay.

“The Ministry is maintaining the existing planning timeline for the rollout, if possible this month, although if negotiations are until the end of September, then there has to be a rollout in early October.

“I do not want delays or the government’s roll-out plans interrupted because of one or two companies changing their stand. So, we must remain on track,” he said. It was reported recently that Maxis Bhd and U Mobile Sdn Bhd had decided not to take a stake in DNB for the 5G programme. Four MNOs, namely Celcom Axiata Bhd, Digi.com Bhd, YTL Communications Sdn Bhd (YES) and Telekom Malaysia Bhd (TM) still stand by their respective decisions to be part of the programme.  

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