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DNB's finances to hold up despite second 5G network rollout, says Fahmi

KUALA LUMPUR: Digital Nasional Bhd (DNB) is expected to maintain its financial stability even after the deployment of the second 5G network, according to Communications Minister Fahmi Fadzil.

He assured that DNB would not be affected by the new network.

Fahmi added that discussions about the future business plan of the state-owned entity responsible for the country's 5G infrastructure have been held with the Malaysian Communications and Multimedia Commission (MCMC).

"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 some information from DNB with regard to its business plans," he reportedly said after officiating the CelcomDigi Bhd experience centre in Subang Jaya on Tuesday.

In May last year, the government announced the transition from a single wholesale network (SWN) model to a dual network model (DNM) for 5G.

Four mobile network operators (MNOs)—CelcomDigi Bhd, Maxis Bhd, U Mobile Sdn Bhd, and YTL Power International Bhd through YTL Communications Sdn Bhd—have completed their agreements for the SWN and now collectively hold 65.1 per cent of DNB.

Once state-owned Telekom Malaysia (TM) Bhd finalises its part of the deal by August 21, each MNO will hold 14 per cent of DNB, with the remaining 30 per cent controlled by the Minister of Finance Inc. (MOF Inc.).

CelcomDigi, having expressed interest in leading the second 5G network after acquiring a 16.3 per cent stake in SWN, reaffirmed its keenness to be involved in the DNM.

Last week, U Mobile and EDOTCO, the country's largest telecommunications infrastructure company, announced a partnership to accelerate the rollout of the 5G network under the government's dual network model.

In a statement, U Mobile said the MoU affirms its commitment to rapid, effective, and cost-efficient deployment of the second 5G network by leveraging EDOTCO's extensive tower footprint and expertise.

EDOTCO will provide U Mobile with essential information and access to its tower infrastructure, ensuring resource readiness and expedited site delivery to facilitate the 5G network rollout. Both companies will develop a streamlined process to enhance efficiency in identifying optimal tower locations and structures using AI and data-driven analytics.

This collaboration with various state agencies will enable faster site acquisition and permissions, accelerating the activation of new 5G sites and expanding coverage more rapidly, according to U Mobile.

U Mobile's chief technology officer, Woon Ooi Yuen, said that in line with the Malaysian government's mandate for dual 5G networks to promote healthy competition in the telecommunications sector, the company is excited to leverage EDOTCO's extensive tower infrastructure to accelerate the rollout, further solidifying its position in deploying the second 5G network.

"We are looking forward to ensuring affordable and quality 5G services for Malaysians and to showcasing the economic benefits that the technology will bring to the consumer, business, and public sectors," he said.

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