Communications and digital minister Fahmi Fadzil said that the Malaysian government will retain a golden share in DNB

Malaysia’s five major mobile operators signed share subscription agreements to acquire a collective 70% equity stake in Digital Nasional Berhad (DNB), the country’s 5G wholesale network supplier.

Under the terms of the deal, local telcos CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International will each buy a 14% stake in DNB. Each telco will invest a total of RM233 million ($50 million).

The share subscriptions are expected to be completed between February and April 2024 after due diligence requirements are met, according to the Malaysian government.

Communications and Digital Minister Fahmi Fadzil noted that the government will retain a “golden” share in DNB, as well as the remaining 30% stake.

Fahmi also said that DNB will now seek to complete the implementation of the 5G network by achieving 80% coverage in populated areas. “As of the end of October, we have reached 73%. Upon reaching 80%, the government will announce the establishment of a new entity,” he said.

In May, the government announced it will enable the deployment of a second 5G network in 2024, adding that a new entity will be created to manage Malaysia’s second 5G network. Fahmi said the telecommunications companies will engage in discussions and come to a decision on which one among them will enter the new 5G entity.

The official also confirmed that the government will hold no stake in the second 5G network.

DNB was set up by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure, which private telecommunications firms would use to offer 5G services to their customers. DNB’s 5G network was deployed by Ericsson.

Last month, DNB has launched what it claims to be the largest 5G experience center in the country in partnership with Swedish vendor Ericsson. The main aim of the new facility is to raise awareness and promote the adoption of 5G across Malaysia.

Named “My5G Portal”, the center has been set up by DNB with the support of Ericsson to provide an interactive and immersive environment for visitors to experience and understand the impact of 5G technology on enterprises and consumers.

The new 5G center, located at the lobby of the TRX Exchange 106 tower where the DNB office is located, is meant to serve as a learning hub for customers, partners, industry, academia as well as government officials to understand the potential of 5G technology by showing the performance of 5G products and services through live demonstrations and technology showcases.