Four mobile operators – Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd (YES), and Telekom Malaysia Bhd (TM – agreed to take up equity stakes in Malaysials Digital Nasional Berhad (DNB).
The deal paves the way for DNB to accelerate deployment of the 5G network and infrastructure, with a target of 80% coverage of populated areas by 2024.
Together, the four operators will hold 65% equity in DNB, with their respective stakes as follows: Celcom Axiata (12.5%), Digi Telecommunications (12.5%), YTL Communications (20%), TM (20%). The Government of Malaysia will retain the other 35% and hold a Golden Share, which carries various rights and privileges and covers areas such as ownership, sale, or transfer of shares on the part of the Government.
The 12.5% shareholding each for Celcom Axiata and Digi Telecommunications is in recognition of their imminent merger. Under the terms of the SSA and the agreed governance structure between the parties, no single MNO can hold more than a 20% shareholding in DNB, and in the event of a merger between the MNOs, the merged entity cannot hold more than a 25% shareholding in DNB.
This marks a positive development following extensive discussions between the MNOs and DNB. It is anticipated that the MNOs will make 5G services available to their end users from October 2022 onwards.
“I am pleased that the MNOs have taken up the equity offered by the Government and have executed their SSAs with DNB. All parties will now work towards completing the conditions precedent in the SSAs, including executing the Access Agreements as soon as possible. I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global ‘roaming’ customers. The MNOs, in particular, have a crucial role to play in ensuring the accelerated adoption of 5G among end users. Over the longer term, they will be responsible for bringing to market a host of new 5G-enabled products and services which will have a positive impact on many businesses, be it small, medium or large, as well as Government,” said DNB Chairman, Yang Berbahagia Datuk Seri Asri Hamidon.
“As of today, the 5G network has achieved 33% coverage of populated areas as against a target of approximately 40% by end-2022. The testing and integration of 5G sites by the MNOs have progressed well and I believe they are ready to provide 5G services to end-users located in areas where 5G infrastructure is currently available. In addition, the local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia. As such, we are encouraged by the establishment of the infrastructure to facilitate the rapid adoption of 5G by the Rakyat, businesses, and Government,” Datuk Seri Asri added.
Telekom Malaysia to provide fiber to DNB for nationwide 5G
Telekom Malaysia Berhad (TM) signed a Fibre Leasing Service agreement with Digital Nasional Berhad (DNB) to speed up the deployment of the government-owned 5G network nationwide.
DNB will be able to leverage on TM’s extensive fibre and network infrastructure, and subscribe to TM’s 5G RAN-to-Edge Fronthaul and Backhaul solution for the provision of fibre connectivity, enabling DNB to provide 5G network services nationwide.
Under the agreement, TM will provide DNB with 5G fibre leasing services for connectivity between DNB’s 5G mobile sites and nodes, leveraging on TM’s domestic fibre cable network spanning over 640,000 km across Malaysia. Prior to this, TM along with other fibre providers in Malaysia had participated in the 5G Fiber Leasing Request for Quotation (RFQ) exercise conducted by DNB in June 2021.
The term sheet agreement with a total contract value of RM2 billion over 10 years was duly signed by Imri Mokhtar, Group Chief Executive Officer of TM and Amar Huzaimi Md Deris, Executive Vice President, TM Wholesale while DNB was represented by Augustus Ralph Marshall, Chief Executive Officer and Dushyanthan Vaithiyanathan, Chief Operating Officer.
