The rollout of the second 5G network in Malaysia will face delays despite Digital Nasional Berhad (DNB) achieving 80 percent coverage, Communications Minister Fahmi Fadzil announced today.
Fahmi said that the delay is attributed to the need for DNB’s board to be established before proceeding with the rollout.
“We are awaiting the formation of the DNB board since the share subscription agreement was signed on December 1 last year, following a discussion session,” Fahmi said during a press conference at the ministry.
He further explained that discussions with the CEOs of all telecommunication providers involved were held during his visit to Barcelona.
These providers have submitted a letter to the Treasury secretary-general, Datuk Johan Mahmood Merican, for consideration.
“Now we are awaiting a response from the treasury. This process will take some time due to legal aspects. A special committee, co-chaired by the Communications Ministry and the chief secretary of the treasury, will oversee this matter,” Fahmi added.
Last year on December 1, five major mobile network operators (MNO) signed the SSA, which would give each a 14 percent stake in DNB.
This agreement aimed to address concerns about corporate interests overshadowing DNB’s mandate to provide fifth-generation high-speed internet as a public utility.
The development of a second 5G network through the new entity will commence only after DNB achieves 80 percent coverage, Fahmi highlighted. DNB reached this milestone nationwide on January 10.
Each MNO will inject RM230 million to assist in covering DNB’s costs for developing the 5G network.
