KUALA LUMPUR (Oct 31): Five mobile network operators, excluding Maxis Bhd, have executed their respective access agreements with Digital Nasional Bhd (DNB), meeting the Oct 30 deadline, according to sources.

The access agreements are for Telekom Malaysia Bhd (TM), Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd and U Mobile Sdn Bhd to lease DNB’s 5G network that is being rolled out currently.

The execution of the access agreements means that the five telecommunications companies (telcos) will offer their customers 5G services soon.

Telekom Malaysia Bhd (TM), Digi Telecommunications’ parent Digi.Com Bhd, Celcom Axiata’s parent Axiata Grop Bhd, and U Mobile Sdn Bhd confirmed that they had signed the agreements in separate announcements on Monday (Oct 31).

According to the MNOs, the access agreements are for 10 years, starting from Oct 7, 2022.

In TM’s filing with Bursa Malaysia, it said that under the agreement, DNB will provide the national 5G wholesale network product, which is a base product on DNB’s 5G access network.

With approximately 2.9 million fixed broadband subscribers as of June 30, TM said the provision of 5G services will enhance its position as the “preferred partner in accelerating the adoption of fixed-mobile coverage via 5G and fixed broadband solutions”.

U Mobile, in a statement, said it will begin providing 5G services from Nov 3 for its 5G-ready postpaid and prepaid customers. The single network makes it “as well positioned as any other” players for 5G, it added.

Separately, Digi said the concluded access agreements include “improvements in a few key terms” in the reference access offer first published by DNB on March 31. “Digi will continue to invest in and operate its own core network, nationwide 4G+ network and data centres,” it said, adding that it is continuing 5G network testing with its technology partners and DNB.

Axiata, in announcing the signing, said “there is no charge to be incurred in 2022” under the agreements.

Meanwhile, Maxis Bhd said in a statement on Monday that it was still assessing the governance requirements for the 5G access agreement and is “committed to bringing this to a close as soon as possible”.

“Maxis is committed to playing an active role in bringing 5G to the nation, in line with the government’s digital ambitions, and to utilising Digital Nasional Bhd (DNB)’s network for 5G services,” the group said, adding that it is confident of launching 5G “in the near future”.

“Maxis will continue to support the nation’s 5G aspirations in strengthening Malaysia’s competitiveness in the region,” the group said in the statement.

5G network coverage in Malaysia had reached 33.2% of populated areas as of Sept 30, said the Malaysian Communications and Multimedia Commission (MCMC). The commission told the media two weeks ago that coverage is on track to achieve the 80% target set by the Government by 2024.

The 5G roll-out plan has been carried out by DNB since December 2021, with the MCMC aiming for about 38% coverage in populated areas by the end of this year.

Meanwhile, the four telcos taking up an equity stake in DNB are TM, Celcom Axiata, Digi Telecommunications, and YTL Communications.

Both Celcom Axiata and Digi Telecommunications will each take up a 12.5% stake, while YTL Communications and TM will have 20% each. The Ministry of Finance (MOF) will hold the remaining 35% stake.

Maxis and U Mobile have opted out of buying an equity stake in DNB.