The issue of the development of the second national 5G network seems to be showing the end of an old phase, where CelcomDigi and Maxis have informed Bursa Malaysia that the two companies have met the conditions to have a shareholding in Digital Nasional Berhad.
Among the conditions set to allow local telecommunications companies to build a second 5G network is to first ensure that the 5G network built by DNB covers 80 percent of the populated area in Malaysia by the end of 2023, where it has now reached 81.5 percent in the middle of the year this.
The two telecommunications companies are reported to be ready to invest money for a 14 percent equity stake each, with Maxis also confirming that they have completed 100 thousand new DNB share subscriptions at a price of RM1.00 for each share.
With this announcement, DNB confirmed that their share subscription agreement (SSA) with five companies, namely CelcomDigi, Maxis, U Mobile, YTL Communications and Telekom Malaysia will be completed by the end of this month, and the next phase is to start the second 5G network development phase .
For Telekom Malaysia, they will be given an extension of time until 21 August 2024 to complete their SSA due to due diligence requirements due to their status as a government-linked company (GLC).
Under this SSA, each company will also provide a zero-interest loan of RM233 million together with the purchase of 100 thousand DNB shares at a price of RM100,000.
With this, the local telecommunications company's 70 percent holding on DNB is complete, with the government through the Ministry of Finance having another 30 percent holding on the company.