SUBANG JAYA (July 9): Communications Minister Fahmi Fadzil says Digital Nasional Bhd (DNB) should be able to sustain its finances despite the deployment of the second 5G network.

“We don't believe so (that the second 5G network will impact DNB),” Fahmi told reporters when asked about DNB’s future financial viability once the second 5G network is rolled out.

He said the Malaysian Communications and Multimedia Commission (MCMC) has also been in talks with the state-owned company tasked with deploying the national 5G infrastructure about its business plan for the future.

“When the working environment changes or when certain new technologies appear, business processes and plans will have to be augmented and updated. So, likewise, MCMC has officially requested for some information from DNB with regard to its business plans,” Fahmi said after officiating the CelcomDigi Bhd (KL:CDB) experience centre here on Tuesday.

The government announced the transition from the single wholesale network (SWN) model to the dual network model (DNM) for 5G in May last year. Entity A will assume control of the existing 5G network owned by DNB, while Entity B will develop another new 5G network from the ground up.

CelcomDigi Bhd CEO Datuk Idham Nawawi speaking at a joint press conference with Fahmi.

Meanwhile, CelcomDigi, which recently expressed its interest in leading the second 5G network after completing its share subscription of a 16.3% stake in DNB’s SWN, reaffirmed that it is keen to be involved in the DNM, although it can’t share much details on the progress at the moment.

"Well, I can't comment at this point of time because the process is ongoing. Of course, we are interested in participating, but this is something under ... MCMC,” CelcomDigi chief executive officer Datuk Idham Nawawi said at a joint press conference with Fahmi.

CelcomDigi along with three mobile network operators (MNOs) — Maxis Bhd (KL:MAXIS), U Mobile Sdn Bhd and YTL Power International Bhd (KL:YTLPOWR) through YTL Communications Sdn Bhd — have completed their agreements for the SWN, and now collectively hold 65.1% of DNB.

That leaves only state-owned Telekom Malaysia Bhd (KL:TM), but once the company completes its part of the deal by Aug 21, each MNO will hold 14% of DNB, while the Minister of Finance Inc (MOF Inc) will control the remaining 30% of DNB, according to Deputy Communications Minister Teo Nie Ching.

Speaking at the Dewan Rakyat last Wednesday (July 3), Teo also noted that MNOs will not be allowed to hold equity in both entities under the 5G dual wholesale network model to foster healthy competition.

Additionally, Digital Minister Gobind Singh Deo last week said the process of selecting the MNO for the transition to the 5G dual wholesale network model is expected to be completed by the end of this year.

Gobind said all the conditions of the share subscription agreement have been fulfilled by all the MNOs, and the MCMC is looking forward to starting the selection process, which is the second stage towards the decision on who will develop the next 5G network.