Minister Confirms Six Telcos Are Onboard With DNB Stake Deal

Communications and Multimedia Minister Annuar Musa has revealed that six local telcos have agreed to take up the stake in Digital Nasional Bhd (DNB), the state agency and sole 5G infrastructure provider in Malaysia. The agreement between the involved companies has been reached ahead of the deal’s 30 June 2022 deadline.

The minister told reporters during an event in Putrajaya earlier today that everything is according to plan, and issues pertaining to transparency and pricing involved have been sorted out. The finalised deal will see a total of 70% stake in DNB will be shared between the six mobile network operators. He added that the official announcement regarding the matter will be made in a week’s time.

“Bear with me, it just takes another seven or eight days before an official announcement will be made,” he said. “Conversations have taken place and they (telcos) have reached a certain understanding and everything will be concluded by next week.”

Annuar did not specifically mention which telcos are involved, though it is believed that Yes owner YTL Communications is a potential candidate – especially given the fact that the company has already rolled out its Yes Infinite and Yes Infinite Plus 5G services. As for the rest, it is likely that Telekom Malaysia (TM) and the Big Four (Digi, U Mobile, Celcom and Maxis) are part of the list.

Though details of the deal are not known yet, a recent report by The Straits Times cited people familiar with the matter suggesting that the agreement will allegedly include a price review that will be overseen by the Malaysian Communications and Multimedia Commission (MCMC) every three years. Further, the report added that the wholesale pricing for the telcos’ lease on DNB’s 5G assets will be discounted until the state agency achieves 80% nationwide coverage, which is expected to happen only by 2024.

Whether this is actually the case, we’ll only find out when the official announcement of the deal is made sometime next week. 

(Source: Bernama / The Edge Markets / The Straits Times)