KUALA LUMPUR: Malaysia’s five major mobile operators signed a deal on Friday (Dec 1) to take up to 70 per cent equity in the country’s state-owned 5G agency Digital Nasional Berhad (DNB), ahead of a plan to set up a second 5G network.
Malaysia announced in May that it would move to a dual network model from next year as part of a government effort to dismantle monopolies, in a plan that could open its 5G rollout to new players, such as China’s Huawei Technologies.
Maxis Berhad, CelcomDigi, Telekom Malaysia, U Mobile and YTL Communications, through its parent YTL Power International, will pay about 233 million ringgit (US$49.88 million) to take up about 14 per cent equity each in DNB, the agency said in a statement.
Communications Minister Fahmi Fadzil said the firms will assist the state agency to reach 80 per cent network coverage, after which some of the companies would separate from DNB to form the second 5G network.
“The government will still have a golden share of 30 per cent in DNB. It will not have a stake in the second network, which will be completely commercial,” Fahmi told reporters at a signing ceremony.