CelcomDigi, Maxis, Malaysian Telecoms, U Mobile, and YTL Communications firms will all acquire holdings in the state 5G agency Digital Nasional Berhad (DNB), according to a statement released by Malaysia on Friday.
This comes after an agreement was made between the companies and the government over equity participation and 5G access.
Malaysian telecoms firms made the decision at a time when cell carriers and the government appear to be on the verge of concluding drawn-out negotiations regarding the rollout plans for Malaysia’s 5G network.
In 2021, Malaysia made the announcement that the state-owned DNB would possess the entire 5G spectrum. Mobile service providers were expected to use the infrastructure to offer their products and services. However, the concept was received with worry from the sector concerning monopolistic behaviors, price, and transparency issues.
Mobile carriers reached an agreement in October of the previous year to buy up 70% of DNB’s stake in order to break the stalemate.
The administration of Prime Minister Anwar Ibrahim, who came to office following elections in November of the previous year, announced a review of the 5G plans for the government, which caused the contract to fall through.
In May, the government announced that it would welcome a second 5G operator the following year if and when DNB’s coverage reached 80 percent of populous areas.
On Friday, the Ministry of Communications issued a statement in which it stated that the telecoms firms would conduct the proper governance procedures in order to finish the shareholding process in DNB.
However, it did not offer any specifics regarding the distribution of equity or the amount of the transaction.
The major carrier Maxis Berhad , which agreed one week ago to sign a deal to use DNB’s network, was the final big carrier to do so. The agreement had previously been signed by other carriers the year prior, so paving the way for 5G services to be rolled out to users.