Fahmi: All MNOs will have equal stakes in DNB for 5G network

Saturday 03 Oct 2026

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KUALA LUMPUR (Sept 25): Communications and Digital Minister Fahmi Fadzil said all mobile network operators (MNOs) who are participating in Malaysia’s 5G network will hold equal stakes in the government-owned 5G network infrastructure outfit Digital Nasional Bhd (DNB).

“As far as I'm aware, yes [all the MNOs will have equal stakes in DNB],” Fahmi told reporters after officiating the Ericsson Imagine Live Malaysia 2023 here on Monday (Sept 25) that showcased advanced 5G use cases and technology innovations.

All the mobile MNOs are currently finalising their new share subscription agreements (SSAs) with DNB and that they are expected to be concluded “very soon”, he added.

Fahmi previously announced in July that all five MNOs — CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd (TM), U Mobile Sdn Bhd and YTL Communications Sdn Bhd — would take up equity stakes in DNB to support the country's 5G network development. At the time, he did not share what the new equity structure would be like.

Last year, four of the MNOs — Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd (the yet-to-be-merged entities of CelcomDigi), together with TM and YTL Communications — signed conditional SSAs with DNB to collectively take up a 65% equity stake in the state-owned network, while Maxis and U Mobile opted out.

Under the SSAs then, the government would retain its 35% stake and a golden share that grants it various rights and privileges that cover areas such as the ownership, sale and transfer of the shares owned by the government. At the time, Celcom and Digi were to take up a 12.5% stake each (in view of their impending merger at the time), while YTL Communications and TM would each take up a 20% stake. It was also agreed at the time that no single MNO could hold more than a 20% shareholding in DNB, and in the event of a merger, the merged entity could not hold more than a 25% stake in DNB.

The MNOs, however, subsequently pulled out from the SSAs in May this year, following the government's announcement that it would permit the rollout of a second 5G network in the country from 2024.

“There are certain amounts that have been agreed, and I foresee that once [the new SSAs] have been done, we can expedite and we can roll out [5G network] even faster.

“I hope, within a short period of time, the MNOs will come together and sign [the new SSAs] and then we can likely complete the 80% [of 5G network] coverage of populated areas (CoPA) by year end,” Fahmi said on Monday.

According to him, the 5G network CoPA in Malaysia has reached 68.8% as of Aug 31, and is on track to achieve the 80% target by the end of this year or early 2024, before transitioning to a dual network model, with the introduction of a second 5G network through a new entity.

Earlier, Fahmi also said the new chief executive officer of DNB is expected to be announced after the SSA is finalised, Bernama reported.

He said Treasury secretary general Datuk Johan Mahmood Merican and Communications and Digital Ministry secretary general Datuk Mohamad Fauzi Md Isa, who co-chaired the 5G task force meeting, will oversee the final aspects of the appointment before the SSAs are executed.

The position has been vacant since March this year after Augustus Ralph Marshall stepped down from it on the expiry of his two-year contract.

Edited ByTan Choe Choe

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