Four telcos – CelcomDigi, Maxis, U Mobile and YTL, have officially concluded their Share Subscription Agreement (SSA) to take a stake in Digital Nasional Berhad (DNB). Effectively, the four telcos now own 65% of DNB, which was started as a state-owned 5G Single Wholesale Network in 2021.
The conclusion of the SSA will also pave the way for the establishment of Malaysia’s second 5G network as part of the government’s decision in May 2023 to shift from a Single Wholesale Network to a Dual Network model. The full participation of telcos is one of the requirements to allow the second 5G network.
As announced by DNB previously, only four out of five telcos will conclude their SSAs by the end of this month as TM requires more time to obtain its shareholder’s approval. For now, CelcomDigi, Maxis, U Mobile and YTL, will cumulatively own 65.12% shares in DNB (16.28% each). Meanwhile, the Malaysian government via MOF Inc. currently hold 34.88% and a special share.
Once TM completes its SSA, the five telcos will hold a cumulative 70% (14% each), while MOF will adjust its holding to 30%, as stated during the signing of the SSA on 1st December 2023. The long stop date for TM is 21st August 2024.
The five telcos had injected RM233 million each as Access Agreement Prepayment which is then treated as Shareholder Advance to DNB upon SSA completion.
According to YTL Power International Berhad, the investment in DNB signifies the YTL Power International Group’s commitment (through YTL Communications Sdn Bhd) to play a leading role in driving Malaysia’s digital agenda and supporting the Government’s vision for a 5G Dual Wholesale Network (DWN) environment that will deliver benefits to the nation.
YTL Power International Managing Director, Dato Seri Yeoh Seok Hong said, “In line with our commitment to deliver world-class 5G services to the nation, we are fully supportive of the effective implementation of the 5G Dual Wholesale Network model announced by the Government. We will continue to work closely with the Government to realise Malaysia’s ambitions for a digital economy, especially in the development of 5G and the wider AI ecosystem.”
He added, “As the pioneer to launch 5G in Malaysia, YTL Communications through Yes 5G has and continues to champion accessibility and affordability of 5G services for all Malaysians, including consumers, businesses and industries. We are ready to accelerate the successful rollout of 5G nationwide, which is the bedrock to leapfrog industries and drive economic growth.”
Following its previous announcement made on 20th June, CelcomDigi said the completion of the SSA affirms the company’s full support towards the Government’s 5G Dual Network model, and readiness to lead in shaping the country’s 5G landscape and in delivering innovative 5G services to Malaysian consumers and enterprises.
CelcomDigi CEO Datuk Idham Nawawi said, “We are eager to move into the next phase of transitioning to the 5G Dual Network model and participating in the upcoming process to build the second 5G network. We welcome a solution that benefits Malaysian consumers and the industry through a fair and transparent selection and transition mechanism that will promote healthy and equitable competition between the two 5G networks, and advance the technological and economic development of the country.”
He added, “We have a proven track record and substantial experience in deploying mobile networks over the last 30 years. Combined with the RM 4 billion CAPEX we have invested to build Malaysia’s leading digital network, we believe we are in a strong position to lead the development of the second 5G network for Malaysia.”
CelcomDigi reiterated that with its modernised network, it is committed towards the Government’s 5G Dual Network model and is ready to lead the development of Malaysia’s second 5G network.
Commenting on the SSA completion, U Mobile said it fully supports the government’s ambition to transition to a dual 5G network model to drive competition and ensure sustainability of the telecommunications industry in Malaysia.
U Mobile CEO Wong Heang Tuck said, “U Mobile is delighted to have completed the SSA and signed the SHA with DNB to pave the way for the nation’s transition to a dual 5G network model. We are committed to play a critical role in developing Malaysia’s digital economy, by encouraging 5G adoption and showcasing its benefits to consumers, enterprises and the public sector. With the strength of our track record, expertise and futureproofed network infrastructure, we believe we are well-positioned to roll out Malaysia’s second 5G network.”
Maxis has also announced its SSA completion with DNB and other stakeholders via Bursa Malaysia. It mentions that the Shareholders Agreement sets out the terms for the transition to a dual 5G network model, including a put and call option for MoF Inc. to sell its ordinary shares and transfer its shareholder advance in DNB.
The announcement added that an equity restructuring exercise shall take place after the MoF Inc. put and call option. At that stage, Investor Shareholders will split into one group consisting of shareholders that remain in DNB, and another group that will sell its equity in DNB to the shareholders who remain in DNB. The latter group of shareholders may proceed to form an entity to provide the second 5G network or choose not to participate in the equity holding of the second 5G network provider.
Last week, Communications Minister Fahmi Fadzil instructed the Malaysian Communications and Multimedia Commission (MCMC) to begin the process of identifying and appointing a telco for the second 5G network. The MCMC is expected to commence the tender process on 1st July 2024.
