Maxis has announced it is ready to complete its Share Subscription Agreement (SSA) to take up an equity stake in Digital Nasional Berhad (DNB). The green telco is among the 5 telcos that signed the SSA agreement in December 2023 to each take a 14% stake in the state-owned 5G network for RM233 million each.
According to Maxis, the latest development puts them on track to early completion of its SSA process and to participate in the rollout of the second 5G network, well ahead of the timeline announced by Communications Minister Fahmi Fadzil on 2nd June 2024.
In an official statement, Maxis says they fully support and are fully committed to a swift implementation of the Government’s dual 5G network model which was announced a year ago. It added that it looks forward to playing a major role in advancing Malaysia’s digital agenda as an active and key participant in the upcoming phase of the nation’s 5G rollout which includes promoting 5G and 5G-Advanced (5.5G) adoption and innovation among consumers, businesses and government sector.
Maxis CEO Goh Seow Eng said, “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. Completing the SSA process is a pragmatic and necessary step to commence the transition to 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”.
The transition from a single wholesale network to a dual network model was announced in May 2023. Before a second 5G network can be established, DNB was required to achieve its 80% 5G population coverage target, ensuring full participation of the telcos and optimisation of existing infrastructure and resources.
In April 2024, DNB appointed new directors from 5 telcos to its board as part of the process to complete the required due diligence review. As mentioned by Digital Minister Gobind Singh last month, the participating telcos will have 20 days to recommend and decide on the next steps after a formal board meeting.
At the moment, Digital Nasional Berhad is the sole entity that can build a 5G network in Malaysia. The 5 big telcos namely, CelcomDigi, Maxis, TM, U Mobile and Yes 5G are currently providing 5G services through a 5G access agreement.
As of 30th April, DNB has reportedly achieved 81.5% 5G population coverage.
