The number of 5G subscribers in Malaysia reached eight million as of the end of last year
The government of Malaysia confirmed that the special committee overseeing the implementation of the country’s 5G network will prepare a Cabinet memorandum soon to discuss and decide whether it is time to allow a second 5G network, local press reported.
“We announced that 5G network coverage reached 80.2% on December 31, and so, not too long from now, we will announce our decision on whether to allow telecommunications companies establish a second network, apart from Digital Nasional Bhd (DNB),” communications minister Fahmi Fadzil said.
Fadzil also said the number of 5G subscribers in the country reached eight million as of the end of last year.
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.
The Malaysian government had previously stated that Malaysia would shift to a dual 5G network once DNB achieved 80% coverage in populated areas.
Fadzil had said the 80% coverage in the 5G field was achieved after the local carriers signed the agreement to acquire equity in DNB.Last month, Malaysia’s five major mobile operators signed share subscription agreements to acquire a collective 70% equity stake in DNB.
Under the terms of the deal, local telcos CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International will each buy a 14% stake in DNB. Each telco will invest a total of RM233 million ($50 million).
The share subscriptions are expected to be completed between February and April 2024 after due diligence requirements are met, according to the Malaysian government.
Fadzil had said that the government will retain a “golden” share in DNB, as well as the remaining 30% stake. The official also confirmed that the government will hold no stake in the second 5G network.
In November, DNB had launched what it claims to be the largest 5G experience center in the country in partnership with Swedish vendor Ericsson. The main aim of the new facility is to raise awareness and promote the adoption of 5G across Malaysia. The new 5G center, located at the lobby of the TRX Exchange 106 tower where the DNB office is located, is meant to serve as a learning hub for customers, partners, industry, academia as well as government officials to understand the potential of 5G technology by showing the performance of 5G products and services through live demonstrations and technology showcases.
