KUALA LUMPUR (May 4): Less than 24 hours after pulling out from participating in the equity capital of Digital Nasional Bhd (DNB), CelcomDigi Bhd issued a statement on Thursday (May 4) to stress that it remains keen “to play a more active and direct role” in Malaysia’s fifth generation (5G) implementation.
“As per the government’s announcement, the earlier process to subscribe to equity in DNB through the respective share subscription agreements (SSAs) is rendered void.
“The termination of the respective SSAs will clear the path for CelcomDigi to participate in any new process, including equity participation, together with the industry,” said the telecommunication giant.
CelcomDigi Bhd, the merged entity of Celcom Axiata Bhd and DiGi.Com Bhd, announced on Wednesday (May 3) evening that it had pulled out from subscribing for shares in DNB, just hours after Communications and Digital Minister Fahmi Fadzil said Putrajaya will allow the formation of a second 5G network provider in the country as soon as next year.
In Thursday’s statement, CelcomDigi reiterated that it welcomes the government’s decision to implement 5G under two networks once 80% 5G coverage of populated areas (Copa) has been achieved by DNB.
Following the government’s announcement on Wednesday, CelcomDigi disclosed to shareholders via a statement to Bursa Malaysia that both Digi Telecommunications Sdn Bhd (Digitel) and Celcom Mobile Sdn Bhd (Celcom Mobile) have terminated previous respective SSAs signed in November 2022 with DNB, effective May 3.
“CelcomDigi welcomes the opportunity to play a more active and direct role in the country’s 5G implementation, leveraging on our experience and resources, existing widest 4G network, and supply chain and partner ecosystem to support the government’s 5G ambitions, as we bring the best 5G solutions and offerings to Malaysian consumers and businesses,” said CelcomDigi on Thursday.
CelcomDigi added that the termination of SSAs does not have any impact on its 5G services.
“(Our) customers currently on 5G connections may continue to enjoy the service, according to ongoing product offers,” it said.