(Updated)

Six telcos agreed on DNB stake deal, official announcement by next week, says Annuar Musa

Photo by Zahid Izzani Mohd Said/The Edge

Photo by Zahid Izzani Mohd Said/The Edge

-A +A

KUALA LUMPUR (June 30): Six local telcos have agreed to take up the stake in Digital Nasional Bhd (DNB) ahead of Thursday (June 30)’s deadline for them to finalise the decision, according to Communications and Multimedia Minister Tan Sri Annuar Musa.

Speaking in an event in Putrajaya on Thursday, Annuar said a total of 70% stake in DNB will be spread between these six mobile network operators.

He also shared that everything is according to plan, and issues pertaining to transparency and the pricing involved have all been sorted out.

“Bear with me, it just takes another seven or eight days before an official announcement will be made.

“Conversations have taken place and they (telcos) have reached a certain understanding and everything will be concluded by next week,” he said.

DNB is the special purpose vehicle (SPV) set up by the government to roll out and own the 5G network infrastructure nationwide.

On June 29, Singapore’s Straits Times (ST) reported that a non-binding term sheet had been agreed upon by six telcos ahead of the deadline, along with a shareholders agreement to take up a stake in DNB, which is expected to be signed early next month.

The six telcos, including Celcom Axiata Bhd, Digi.com Bhd, Maxis Bhd and U Mobile Sdn Bhd, or collectively known as (CDMU), will take up equal shares in DNB, ST reported.

The ST was also made to understand that the agreement will include a price review that will be overseen by the Malaysian Communications and Multimedia Commission (MCMC) every three years.

Additionally, the wholesale pricing for the lease of DNB’s 5G assets by the telcos will be discounted until DNB achieves 80% nationwide coverage which is expected to happen only by 2024, the report added.

Previously, the CDMU reportedly expressed their intention to hold a controlling 51% stake in DNB.

As of May this year, YTL Communications Sdn Bhd has signed up with DNB for the leasing of the 5G infrastructure, while Telekom Malaysia Bhd has joined the 5G roll-out pilot.

Read also:
Telcos grab DNB stake ahead of 5G rollout deal in July 
Zafrul: DNB stakes for 5G rollout may be opened to new players
Malaysia's biggest telcos seek majority stake in 5G agency — document

Adam Aziz