DNB 5G access agreement finalised and equity participation negotiations going smoothly

• As of June, 5G coverage in populated area is 15.3% away from target of 80%
• Maxis expected to sign agreement upon shareholder’s greement next month

The Malaysia 5G Dual Network Implementation Task Force has successfully agreed on equity participation in Digital Nasional Bhd (DNB) and a 5G access agreement with DNB. The negotiations were chaired jointly by the chief secretary of the treasury, Johan Mahmood Merican and secretary-general of the Ministry of Communications and Digital (KKD), Mohamad Fauzi Isa.

"KKD, in collaboration with all parties, always ensures that the Government's aspirations are realised through an inclusive, transparent and comprehensive process to ensure quality the best service for the Madani Malaysian community," said the minister of Communications and Digital, Fahmi Fadzil (pix) in a statement.

CelcomDigi, Maxis, Telekom Malaysia, U-Mobile, and YTL Communications will finalise the shareholding process in DNB. They will continue to support DNB's development of the 5G network until it reaches 80% coverage in populated areas by the end of 2023 before switching to a model dual network as early as January 2024. The service provider company will take all appropriate governance actions to complete this process.

As of 30 June, DNB has developed a 5G network infrastructure covering 64.7% coverage in populated areas and is on track to achieve the set target of 80% by year end. Note that the initial target of 80% coverage was by end 2024 which was brought forward as DNB has executed its network build-out quicker than anticipated.

As previously promised, Maxis has started the process to sign a 5G access agreement with DNB after several issues related to the matter were finalised on 11 July, KKD said in a press statement. Maxis customers will receive 5G services after Maxis gets shareholder approval at the Extraordinary General Meeting (EGM) next month. CelcomDigi, Telekom Malaysia, U- Mobile and YTL Communications have already offered 5G services after signing a 5G access agreement with DNB last year.