PUTRAJAYA (Sept 20): Participation in the Digital Nasional Bhd (DNB) equity offer is now in its final stage involving four service providers, said Communications and Multimedia Minister Tan Sri Annuar Musa.

They are Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, Telekom Malaysia Bhd and YTL Communications Sdn Bhd.

“Discussions with all four companies have gone smoothly and it is hoped that the access agreement will be finalised and signed by Sept 30,” he said in a statement on Tuesday (Sept 20) regarding the development of 5G implementation in Malaysia.

Established in March 2021, DNB is a special purpose vehicle company owned by the Ministry of Finance (MOF) and regulated by the Malaysian Communications and Multimedia Commission (MCMC). It was established as a provider and facilitator of 5G services for the country.

Annuar said to facilitate the process of equity participation, the Communications and Multimedia Ministry (K-KOMM) and MCMC will update several licence conditions for DNB, particularly those related to company ownership.

“This is because the company structure is no longer 100% owned by the government, instead, the majority shares will be owned by several telecommunications companies that agree to be part of the venture.”

“As shareholders and investors, of course they deserve to consider terms that are convincing and that guarantee the viability of the company in the future," he said.

Annuar said the government’s efforts to speed up the implementation of 5G infrastructure have shown positive results after almost a year of development of a single wholesale network (SWN) carried out by DNB.

He said more than 2,100 5G sites have been operating and as of August this year, 5G coverage has reached 33% in populated areas in eight states, as well as the Federal Territories of Kuala Lumpur and Putrajaya.

“It is expected that the target of 36% coverage at the end of 2022 will be achieved and boost our confidence that the target of 80% coverage in populated areas at the end of 2024 can be realised," he said.

Annuar said the government, under the Malaysia Digital (MyDigital) initiative, has decided that the implementation of 5G should be done through SWN and developed by DNB, adding that K-KOMM fully supports the policy.

He said MCMC has given DNB the relevant licences for a period of 10 years until 2031 and allocated specific 5G spectrum bands that have been identified, and only the specified spectrum is allowed for commercial 5G services by service providers.

In dealing with the challenges of 5G implementation, he said K-KOMM, through MCMC and also DNB, had actively held engagement sessions with state authorities, local governments and relevant stakeholders.

“Through these sessions, basic issues have been addressed immediately and the implementation of the network has been simplified,” he said.

On 5G retail services offered by telecommunication companies, Annuar said YTL Communications with the YES service has so far been ahead of other companies in offering commercial services to consumers.

Celcom, on the other hand, through its Friendly User Trial programme, has started to open 5G access to their selected users to test 5G services, he said, adding that this was also a positive development.

“We hope companies that intend to offer 5G retail services can speed up their plans and actions,” he said.