KUALA LUMPUR (June 7): Maxis Bhd (KL:MAXIS), one of the five mobile network operators (MNOs) involved in the implementation of the national dual network 5G model, said on Friday that it is ready to complete the Digital Nasional Bhd (DNB) share subscription agreement (SSA) process.
This puts the company on track to an early completion of its SSA process and to participate in the rollout of the second 5G network ahead of the timeline given by Communications Minister Fahmi Fadzil, Maxis said in a statement.
"We want to see an early conclusion to the SSA process as it will provide greater certainty to the nation's dual 5G network rollout," Maxis chief executive officer Goh Seow Eng said.
"Completing the SSA process is a pragmatic and necessary step to commence the transition to a dual 5G network. Maxis is fully prepared to start building the second 5G network immediately to accelerate the nation's 5G plan and bring its economic benefits to Malaysians at a faster pace," he added.
Last Sunday, Fahmi said the MNOs were given until June 21 to complete the SSA process for DNB equity acquisition. After June 21, the formal process of forming the second 5G network can begin, he added.
In May last year, the government announced the transition from the single wholesale network model for 5G to the dual network model.
Then the SSAs were executed in December between DNB and the MNOs — CelcomDigi Bhd (KL:CDB) through Infranation Sdn Bhd, Maxis via Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, Telekom Malaysia Bhd (KL:TM) and YTL Power International Bhd’s (KL:YTLPOWR) unit YTL Communications Sdn Bhd — for the five to take up an equity stake in the entity.
The SSAs essentially give the MNOs a collective 70% equity stake, or 14% each, in DNB, with the government, through the Minister of Finance Inc (MOF), retaining the remaining 30% and holding a special share. MOF Inc may eventually exit DNB with only a special share. The agreements will also see each MNO inject RM233 million — which amounts to a total of RM1.165 billion — to meet DNB’s funding requirements.
Fahmi also previously updated that as at April 30, 2024, the nation's 5G network coverage of populated areas had reached 81.5%, while the acceptance or adoption rate for the 5G network had reached 39.2%.
Shares of Maxis were up one sen, or 0.27%, to close at RM3.66 on Friday, for a market capitalisation of RM28.67 billion.