KUALA LUMPUR (Feb 12): Digital Minister Gobind Singh Deo said Digital Nasional Bhd (DNB) has undertaken a restructuring process following the government's decision to abandon the single wholesale network (SWN) model and transition to a dual 5G network.
This includes updates to its business plan, funding strategy, operations, and cost optimisation measures, he said, without providing further details.
"DNB is actively collaborating with its telco shareholders and experienced industry consultants to ensure its sustainability and future success. The government remains committed to supporting DNB through this transition and ensuring the success of both 5G networks under the new model," Gobind said in a written parliamentary reply on Wednesday.
He was responding to Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor), who inquired about the government's plan to sustain DNB and ensure financial returns amid competition from U Mobile.
U Mobile, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, was selected in November 2024 over its larger competitors to deploy Malaysia’s second 5G network.
To recap, DNB, a special-purpose vehicle under the Ministry of Finance, was initially established to deploy 5G infrastructure and serve as the sole provider of wholesale 5G services to telcos.
However, the unity government later opted for a dual 5G network model after DNB's first network achieved 80% coverage of populated areas (CoPA).
Currently, four mobile network operators — CelcomDigi Bhd (KL:CDB), Maxis Bhd (KL:MAXIS), U Mobile Sdn Bhd, and YTL Communications Sdn Bhd (a subsidiary of YTL Power International Bhd [KL:YTLPOWR]) — each hold a 16.3% stake in DNB. The government, through the Minister of Finance Inc, retains approximately 34.9% equity and a special share in DNB.
In line with the transition to the dual network model, Gobind said the government will receive payment for its shares in DNB and transfer ownership to telcos in accordance with the shareholders' agreement.
Additionally, government loans injected into DNB will be repaid by telco shareholders, including interest charges.
Government-guaranteed loans will also be refinanced, releasing the government from its guarantee obligations, Gobind added.
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