KUALA LUMPUR, May 9 ― During an interview on Bernama TV, the Chief Operating Officer of the Malaysian Communications and Multimedia Commission (MCMC), Datuk Mohd Ali Hanafiah Mohd Yunus, said another entity will take over Digital Nasional Berhad (DNB) once it achieves 80 per cent 5G population coverage.

After the takeover, the government will withdraw its holding, making Digital Nasional Berhad a fully private company.

When Mohd Ali was asked if DNB will cease to exist after the government implements its dual 5G network approach, he said there will be two entities, one of which will take over DNB. He iterated that DNB’s target is to achieve 80 per cent 5G population coverage by the end of this year and they will still be operating after that. He added another entity will take over its network operations and staffing.

Mohd Ali said beginning next year, once the new entity takes over, the government will dispose of its entire stake.

“So, it will totally become a private entity, no longer belongs to the government,” he said.

DNB is currently a state-owned single wholesale network and it was established as a special purpose vehicle under the Ministry of Finance during Muhyiddin’s administration. In October 2022, four telcos ― Celcom, Digi, Telekom Malaysia and YTL Communications have signed a share subscription agreement (SSA) to get a combined 65 per cent equity stake in DNB while the Ministry of Finance holds the remaining 35 per cent stake.

Last week, Communications and Digital Minister Fahmi Fadzil announced the government’s decision to shift from a single wholesale network to a dual network model for 5G deployment. According to Fahmi, the decision to allow a second 5G network in Malaysia was made to avoid a single point of failure and to establish redundancy for 5G.

Shortly after the announcement, CelcomDigi terminated its equity deal with DNB as the conditions under the SSA have lapsed. The newly merged telco said the termination of the SSA will clear the path for them to participate in any new process including equity participation together with the industry. CelcomDigi assured that the equity deal termination will have no impact to customers and they can continue to enjoy 5G services under DNB’s 5G coverage areas.