Posted on by THE HAMMER
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Top telcos, minus Maxis and U Mobile, sign up for shareholding in DNB
09 Oct
Four Mobile Network Operators (MNOs) – Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd (YES), and Telekom Malaysia Bhd (TM) – have executed share subscription agreements (to take up equity stakes in Digital Nasional Berhad (DNB).
These give effect to the MNOs’ subscription of 65% equity in DNB, with their respective stakes as follows: Celcom Axiata (12.5%), Digi Telecommunications (12.5%), YTL Communications (20%), TM (20%).
The Government will retain the other 35% and hold a golden share. The golden share grants various rights and privileges and covers areas such as ownership, sale, or transfer of shares on the part of the Government.
The 12.5% shareholding each for Celcom Axiata and Digi Telecommunications is in recognition of their imminent merger.
Under the terms of the SSA and the agreed governance structure between the parties, no single MNO can hold more than a 20% shareholding in DNB, and in the event of a merger between the MNOs, the merged entity cannot hold more than a 25% shareholding in DNB.
It is anticipated that the MNOs will make 5G services available to their end users from October 2022 onwards.
“I am pleased the MNOs have taken up the equity offered by the Government and have executed their SSAs with DNB. I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global‘roaming’ customers.
Over the longer term, the MNOs will be responsible for bringing to market a host of new 5G-enabled products and services which will have a positive impact on many businesses, be it small, medium or large, as well as Government,” said DNB Chairman, Datuk Seri Asri Hamidon.
Meanwhile, DNB will continue to deploy the 5G network and infrastructure on an accelerated schedule, with a target of 80% coverage of populated areas by 2024.
“The 5G network has achieved 33% coverage of populated areas as against a target of approximately 40% by end-2022. The local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia,” he added.
