Digital Nasional Berhad (DNB) has already begun a restructuring process following the government’s decision to transition the country’s 5G model from the single wholesale network to a dual 5G network. This also includes updating its business and funding plans as well as implementing radical operational and cost optimisation strategy, according to digital minister Gobind Singh.
This was written in a parliamentary reply in response to a query about how the government plans to sustain DNB and ensure financial returns, explaining that the transition to the dual model necessitates major changes in its operations. This comes after local telco U Mobile was chosen to develop the second 5G network, making it DNB’s direct competitor.
The minister said that the government currently holds a 34.9% stake in DNB along with special shares, but as part of the transition, the government will be compensated for its shareholding as it will transfer the shares to the other telcos involved with DNB. Moreover, the government’s loan injection into DNB will be repaid by the telco firms along with interest charges while government-guaranteed loans will be refinanced to release the government from its guarantee obligation.
While no figure has been officially stated, analysts estimate that CelcomDigi, Maxis, and Yes could be paying RM394 million each to buy out U Mobile’s and the government’s equity stakes in DNB. U Mobile chairman Vincent Tan revealed last month that its second 5G network will be rolled out in 15 to 18 months as the company prepares to be publicly listed by the end of the year.
(Source: Bernama)
