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[UPDATED] Five MNOs sign share subscription agreements for DNB equity stakes

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DNB remains 'floating' agency, says Fahmi | Scoop
Communications Minister Fahmi Fadzil has said that the placement of Digital Nasional Bhd is yet to be decided. – Abdul Razak Latif/Scoop pic, January 3, 2024
News

DNB remains ‘floating’ agency, says Fahmi

5G special-purpose vehicle yet to find a home after ministries split in cabinet reshuffle

Main Author Image
Qistina Nadia Dzulqarnain
Updated
6:09 PM MYT

 

PUTRAJAYA – Digital Nasional Bhd (DNB), the government’s special-purpose vehicle for the nation’s 5G roll-out, has yet to find a home after the cabinet reshuffle last month saw the separation of the Communications Ministry and the Digital Ministry. 

After attending a cabinet meeting today, Communications Minister Fahmi Fadzil said that Prime Minister Datuk Seri Anwar Ibrahim had informed his cabinet that there were still certain issues concerning some agencies. 

“The (placement) of DNB has not yet been decided. We’re giving it a bit more time for discussions to be held regarding main agencies, especially with the formation of two new ministries,” Fahmi told a press conference.

He added that since the Malaysian Communications and Multimedia Commission remained under his ministry, the ministry would continue to perform its duties alongside the National 5G Task Force. 

“God willing, we’re expecting to reach 80% 5G coverage in populated areas soon, following which we will be able to move to the 5G dual-network model.” 

Last month, five mobile network operators (MNOs) inked share-subscription agreements to take up a total of 70% equity stakes in DNB. 

The signing, which was commemorated during an event at the The Exchange 106 in Kuala Lumpur, paved the way for each MNO to channel approximately RM233 million to meet DNB’s funding requirements. 

The MNOs involved in the signing were CelcomDigi Bhd through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, Telekom Malaysia Bhd and YTL Power International Bhd.  

The agreements give effect to the MNOs’ collective subscription, subject to satisfactory due diligence, of 70% equity or 14% each in DNB. 

“It has been decided that once 80% 5G coverage in populated areas has been achieved, several MNOs will remain with DNB as Entity A, while certain other MNOs will develop the second 5G network under Entity B,” Fahmi said last month. – January 3, 2023

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