Maxis has announced via Bursa that it will soon sign the 5G access agreement with Digital Nasional Berhad. After a long delay that was further extended after the Malaysian government called to review the country’s 5G single wholesale network approach, Maxis says it will seek shareholder’s approval for the proposed execution of the finalised access agreement with DNB to gain access to 5G products and services provided on a wholesale basis.
According to Maxis, the signing of the agreement will help to realise Malaysia’s digital ambition. It believes in the benefits that 5G will bring to businesses, customers and the Government in strengthening Malaysia’s competitiveness. Maxis says DNB remains the single neutral wholesale network provider to deploy 5G in Malaysia and the entry into the Access Agreement with DNB will enable Maxis to provide 5G services to its customers.
It also added that 5G will be part of Maxis’ converged network connectivity incorporating mobile, fibre and satellite technology to ensure all Malaysians remain connected in every possible way. The signing of the access agreement will also allow Maxis to offer solutions using the 5G network and accelerate industry-wide 5G adoption in the country.
The statement also said: “The Board, having considered the lack of alternative wholesale network provider, the benefits that 5G will bring to businesses, customers, and the Government to strengthen Malaysia’s competitiveness and that the provision of 5G services will have a long-term value to Maxis Group, believes that the Proposed Transaction is in the best interest of Maxis and recommends that Maxis’ shareholders vote in favour of the resolution pertaining to the Proposed Transaction to be tabled at the EGM to be convened.”
RHB Investment Bank has been appointed as the Principal Advisor to Maxis for the Proposed Transaction. The 5G access agreement will be signed after obtaining shareholders’ approval at an EGM that will take place in the third quarter of 2023.
As announced in May, Malaysia aims to transition to a Dual Network approach for 5G in early 2024 after DNB achieves 80% 5G population coverage. According to the Communications and Digital Minister, Fahmi Fadzil, the move from Single Wholesale Network to Dual Network is aimed that avoiding a single point of failure and establishing redundancy for 5G.
A 5G Task Force was formed to smoothen the transition process. Last month, the 5G Task Force Chairmen shared that they are looking at resolving issues related to DNB’s 5G access agreement and equity deals, with the expectation that more providers especially Maxis can offer 5G services to consumers.
On 20th June, Fahmi said telcos are expected to announce good news related to 5G by the end of last month, however, there were no significant updates in the telco space. With less than six months to go, there’s still a lack of clarity on the formation of the second 5G network. As of June 2023, DNB’s 5G network claimed to have achieved 62.1% population coverage nationwide.
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