The big six telcos have agreed, Malaysians to enjoy 5G soon

SHAH ALAM -- Malaysians will be able to enjoy 5G services soon now that all six major telecommunication companies (telcos) have given the greenlight for its rollout.

The announcement was made by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz who explained that the telcos have signed the access agreements (AAs) with Digital Nasional Berhad (DNB).

“Maxis, U Mobile, Celcom Axiata, Digi Telecommunications, YTL Communications, and Telekom Malaysia (TM) have signed the AAs for the 5G rollout prepared by DNB,” he said in a Facebook post.

“The provision of this widespread 5G network will drive the country’s digitalisation efforts. We’re all set and ready to accelerate 5G deployment.”

To the unfamilliar DNB is the government's special purpose vehicle (SPV), established in March 2021 to drive the development of Malaysia's 5G infrastructure.

The 5G coverage in the country currently stood at over 30 per cent in populated areas with the government expecting to achieve 80 per cent by 2024.

Zafrul announcement today meant that the six telcos, including Maxis and U Mobile, had resolved the issues which led to the two companies merely subscribing to DNB's 5G network instead of taking a stake in it.

On October 7, Bernama reported DNB’s announcement that it had executed share subscription agreements (SSAs) with four telcos – Celcom, Digi, YTL, and TM – which will collectively take up a 65 per cent stake in the SPV.

Celcom and Digi will each take up a 12.5 per cent, while YTL and TM will have 20 per cent each. The finance ministry will hold the remaining 35 per cent stake.

DNB said in a statement that the 12.5 per cent shareholding each for Celcom and Digi is in recognition of their imminent merger.