CelcomDigi Bhd announced that it had completed the Digital Nasional Bhd’s (DNB) RM5.2 billion financing exercise, the award of DNB’s long-term 5G spectrum allocation and progress towards transferring the Minister of Finance (Incorporated) shareholding to mobile network operator shareholders.
The telecommunications group said the developments provide greater certainty over DNB’s funding, spectrum and ownership structure, allowing CelcomDigi to pursue network and cost synergies while improving the economics and performance of its 5G services.
CelcomDigi said completion of DNB’s financing exercise strengthens the wholesale 5G network operator’s capital structure and financial capacity to support its network priorities.
Based on DNB’s current regulatory commitments and funding requirements, CelcomDigi expects the financing to reduce the need for additional equity funding from DNB’s mobile network operator shareholders.
This, it said, would allow shareholders to focus more closely on improving the efficiency and performance of the 5G network.
CelcomDigi said the award of DNB’s 5G spectrum for a 15-year period also provides longer-term visibility over spectrum availability and costs, supporting more effective network planning and investment.
DNB holds 200MHz of contiguous mid-band spectrum, which CelcomDigi said provides capacity to support growing consumer and enterprise demand while enabling further network modernisation, indoor building solutions, coverage expansion and more efficient spectrum utilisation.
When combined with CelcomDigi’s existing nationwide network footprint and infrastructure, the group said the arrangement creates further opportunities to improve 5G capacity, coverage and customer experience.
CelcomDigi said that once the transfer of MoF Inc’s shareholding is completed, DNB’s mobile network operator shareholders will assume a greater role in jointly steering the company’s strategic and operational priorities.
The group said it intends to contribute its nationwide network assets, existing infrastructure and more than 30 years of telecommunications experience to support DNB.
This includes leveraging existing sites and capabilities to improve cost efficiency, support wider 5G coverage and accelerate indoor deployment.
