As a result of the SSA, Celcom Axiata would hold 12.5 percent, Digi Telecommunications at 12.5 percent, YTL Communications at 20 percent, and Telekom Malaysia at 20 percent — totaling up to 65 percent equity in DNB. — Reuters pic
By Ashley Yeong
Friday, 07 Oct 2022 10:02 PM MYT
KUALA LUMPUR, Oct 7 — Mobile network operators Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd and Telekom Malaysia today announced their share subscription agreement (SSA) to take up equity stakes in Digital Nasional Berhad (DNB).
As a result of the SSA, Celcom Axiata would hold 12.5 percent, Digi Telecommunications at 12.5 percent, YTL Communications at 20 percent, and Telekom Malaysia at 20 percent — totaling up to 65 percent equity in DNB.
“All parties will now work towards completing the conditions precedent in the SSAs, including executing the Access Agreements as soon as possible. I expect that all parties will make every effort to deliver 5G availability to all their Malaysian and global ‘roaming’ customers.
“The MNOs, in particular, have a crucial role to play in ensuring the accelerated adoption of 5G among end users. Over the longer term, they 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 the government,” DNB chairman , Datuk Seri Asri Hamidon said in a statement.
The chairman said 5G networks have already reached 33 percent of coverage areas out of its target of 40 percent initial end of 2022 target.
He added that DNB will continue to deploy the 5G network and infrastructure on an accelerated schedule with a target of 80 percent coverage of populated areas by 2024.
“The testing and integration of 5G sites by the MNOs have progressed well and I believe they are ready to provide 5G services to end-users located in areas where 5G infrastructure is currently available.
“In addition, the local 5G ecosystem has grown rapidly, with 12 device brands now offering more than 100 5G-compatible models for use in Malaysia. As such, we are encouraged by the establishment of the infrastructure to facilitate the rapid adoption of 5G by the rakyat, businesses, and government,” Datuk Seri Asri added.
In September, Celcom Axiata and Digi Telecommunications merged their operations to form a new entity, MergeCo.
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