YOU ARE AT:5GMaxis postpones agreement with Malaysian 5G provider DNB

Maxis postpones agreement with Malaysian 5G provider DNB

DNB recently said that its 5G network has achieved almost 50% coverage of populated areas with some 3,900 sites at the end of 2022

Malaysian operator Maxis said it will postpone seeking its shareholders’ approval on its entry into a 5G access agreement with state-backed 5G wholesale provider Digital Nasional (DNB).

Maxis said it would wait until the government finalizes the review of its 5G implementation policy.

The new Malaysian government recently announced that it would be reviewing the rollout of the national 5G network, and expected the 5G network implementation policy to be submitted before the Cabinet by the end of March.

The new prime minister said that these plans will be revised due to the lack of transparency.

Digital Nasional Berhad is a special-purpose vehicle set up by the Malaysian government with the main goal of deploying and managing Malaysia’s 5G network.

Last year, former Prime Minister Muhyiddin Yassin had unveiled an initiative for a state-owned vehicle to own all 5G spectrum, with various carriers using the infrastructure to provide mobile services across Malaysia in what would effectively be a wholesale/MVNO arrangement.

Following the announcement of this plan, the country’s telcos had raised concerns about a single state company owing all spectrum frequencies.

The new Prime Minister said that the government will evaluate the 5G plans to ensure that they had fulfilled with all the required procedures.

“Accordingly, the board of directors of Maxis believes it is prudent to postpone the seeking of shareholders’ approval until after the implementation policy is finalized. Maxis remains committed to realizing the country’s digital ambitions and believes in the benefits that 5G will bring to businesses, customers, and the government in strengthening Malaysia’s competitiveness in the region,” the company said in a filing with the Malaysia stock exchange.

Local carriers Celcom Axiata, Digi Telecommunications, Telekom Malaysia, U Mobile and YTL Communications are already offering retail 5G services available to their subscribers, following the signing of their respective 5G access agreements with DNB in October last year.

DNB recently announced that its 5G network has achieved almost 50% coverage of populated areas with some 3,900 sites at the end of 2022.

In a statement, the telco said it has exceeded its 5G coverage target of 40% for the full-year 2022.

DNB said it is now focused on delivering the committed target of 80% of the country’s populated areas by the end of 2024. The company’s 5G network currently reaches some 15 million people and will reach 30 million once fully deployed.

DNB has achieved more than 90% of population coverage with its 5G network throughout Kuala Lumpur and Putrajaya, and Selangor as well as about 50% in Johor, Malacca and Negeri Sembilan. The 5G network currently enables an average downland speed of 380 Mbps, compared with a 35 Mbps rate for 4G.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.