A recent report had also stated that DNB and five local carriers that had signed a share subscription agreement to take up a collective 70% stake in DNB had failed to reach an agreement
Malaysian state-run 5G network Digital Nasional Berhad (DNB) denied a report which had alleged that the company had not been transparent in its internal operations, with regards to the awarding of contracts to third party vendors—in particular, for Ericsson’s 5G network equipment, software procurement and “a potentially lucrative cloud services platform.”
“DNB strongly denies these allegations and rejects the insinuation of any impropriety in our governance and procurement practices. DNB’s tender and procurement processes are structured according to the strictest governance standards and best practices,” the Malaysian company said in a statement.
“The awarding of the 5G network equipment contract involved a rigorous evaluation process, with Ericsson obtaining the highest score across all prerequisites. The tender process was structured by an independent global professional services firm, and involved some 50 local and international experts from across 10 countries with 5G network rollout experience. The process also has been reviewed by multiple parties, including during reviews of the 5G network policy by the Malaysian Cabinet in 2022 and 2023,” the company added.
The report, published last week by Singapore-based news outlet Channel News Asia, had also stated that DNB and the domestic telecommunications carriers that had signed a share subscription agreement to take up a collective 70% stake in DNB last year had subsequently failed to reach an agreement.
Under the terms of the deal, local telcos CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International had agreed to each buy a 14% stake in DNB, with an investment of about $50 million each. Those share subscriptions are expected to be completed between February and April 2024 after due diligence requirements are met. The Malaysian government will retain a “golden” share in DNB, as well as the remaining 30% stake.
The Channel News Asia report also raised concerns about the establishment of a second 5G network which was announced by the Malaysian government after DNB achieved 80% 5G population coverage target almost four months ago.
“The process with respect to the share subscription agreements signed with the five mobile network operators is ongoing. We strongly deny the claims made otherwise but are unable to comment in specific terms due to confidentiality restrictions. Given DNB’s position as a public utility serving the public interest, it is critical for published reports to be verified and based on accurate information,” DNB added.
DNB was set up by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure, which private telecommunications firms would use to offer 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
