This article appeared in The Edge Markets on 31 August 2022.

KUALA LUMPUR (Aug 31): Digital Nasional Bhd (DNB) said discussions on 5G access agreements are progressing with all six mobile network operators (MNOs) involved, and under a separate and independent track.

The six MNOs are Maxis Bhd, U Mobile Sdn Bhd, Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd, and Telekom Malaysia Bhd.

In a statement on Wednesday (Aug 31), following a report that that Maxis and U Mobile do not plan to take stakes in state-owned DNB, the 5G agency said the execution of share subscription agreements (SSAs) with the MNOs will be concluded soon.

It said that although the SSAs were finalised and ready to be executed by the six MNOs on Tuesday, there was a last-minute change in the decision by two MNOs (one had decided not to proceed, while the other had not responded), despite their confirmations to participate earlier.

Accordingly, DNB said revisions of the transaction documents (the SSAs and shareholder agreements) need to be made to allow for the equity subscription by four MNOs (instead of six), which would consequently require further internal approvals from the four MNOs.

“The four MNOs remain interested, and it is envisaged that the equity participation process will progress to completion with the MNOs concerned.

“[Meanwhile,] discussions on 5G access agreements are progressing with all six MNOs, and under a separate and independent track,” it said.

DNB said it is committed to ensuring that the 5G network and infrastructure will continue to be deployed on an accelerated basis.

It said that at present, 5G coverage has reached approximately 30% of populated areas, and is on track to achieve the target of 80% coverage of populated areas by 2024.