Fahmi says govt to decide Malaysia’s second 5G network provider after DNB by mid-October

Malay Mail
Malay Mail

KUALA LUMPUR, Oct 6 — Communications and Digital Minister Fahmi Fadzil today said a decision will be made about the country’s second network provider after state-owned Digital Nasional Berhad (DNB) by the middle of this month.

He added that discussions with mobile network operators (MNO) involving a task force comprising not just his ministry officials, but also the chief secretary to the government and the Treasury secretary-general, are currently ongoing.

“There is a structure and an ongoing discussion. We have not yet come to a decision as to which MNO will be in which entity: Entity A, which is Digital Nasional Berhad, or Entity B.

“I believe we anticipate the signing of the share subscription agreement for take up of equity on DNB to take place first before further discussions on the second network will be at a more advanced stage,” he told reporters at the launch of Malaysia’s first commercial 5G private network at the Kuala Lumpur Convention Centre here.

He said the first step is signing on the MNO.

“I am informed by the task force that if all things go well, before the middle of this month, hopefully,” he added, when asked about the second 5G network provider.

In May, Fahmi said the rollout of 5G will continue with state agency DNB until 80 per cent of population coverage is reached, upon which it will transition to a dual wholesale network model.

DNB is currently the sole holder of Malaysia’s 5G spectrum.

It has been tasked to develop Malaysia’s 5G infrastructure and lease it out to the telecommunications companies under the single wholesale network model. It is set to achieve 80 per cent coverage by end-2023, from 50 per cent at end-2022.

The company is 35 per cent-owned by the government, while the remaining 65 per cent is shared along Celcom Axiata Bhd (12.5 per cent), Digi Telecommunications Sdn Bhd (12.5 per cent), YTL Communications Sdn Bhd (20 per cent), and Telekom Malaysia Bhd (20 per cent).

DNB was established in early March 2021 to accelerate the deployment of 5G infrastructure and network in Malaysia.

It will offer 5G as a wholesale network service to other telecommunications companies.