TM, YTL ready to sign deal to subscribe to DNB shares, MNOs can increase equity stake - Tengku Zafrul

KUALA LUMPUR: Two mobile network operators (MNOs), Telekom Malaysia Bhd (TM) and YTL Communications Sdn Bhd (YES), have obtained approval from their board members and are ready to sign an agreement to subscribe to Digital Nasional Bhd (DNB) shares for the implementation of 5G in Malaysia.

Meanwhile, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said Digi.com Bhd and Celcom Axiata Bhd still need the approval of their board members to decide whether to increase their equity stake in DNB.

"All four MNOs remain positive in subscribing to DNB's shares and we are giving them two weeks to sign the agreement from Aug 31," he said after the ceremony to celebrate the '30% Club Board Mentoring Scheme' here today.

Tengku Zafrul also said the government invited the involved MNOs to take the opportunity to increase their equity holdings in DNB where the process is ongoing and will take a week or two to complete.

"In that process, we have agreed that if there are MNOs that do not participate, the others can raise equity stake and if not, it is limited to 70 per cent for six MNOs," he explained.

It is understood that Maxis Bhd and U Mobile Sdn Bhd do not plan to take an interest in DNB.

Four MNOs namely Celcom Axiata, Digi.com, YTL Communications and TM still stand by their decisions to subscribe to DNB shares.

"When two MNOs withdraw, the equity holding changes because the government only wants to hold 30 per cent stake. We want to distribute 70 per cent to the industry players, the MNOs," he said.

He said some also suggested that this equity holding could be opened to new and foreign companies during discussions between the Ministry of Finance and the Ministry of Communications and Multimedia (KKOM).

"We understand that there are foreign MNOs that are interested and they are large companies already operating 5G in other countries," he said.

He believes that KKOM and the Malaysian Communications and Multimedia Commission will make the appropriate judgments because there are many industry players capable of providing better services to consumers in Malaysia.

"As long as new players or existing players can help to speed up the implementation of 5G to the people, the Finance Ministry will give its full support," he said.

Earlier, Tengku Zafrul told Bernama that MNOs that do not subscribe to DNB shares can still offer 5G access through the 5G Access Agreement.

He also said that the decision of the two MNOs not to subscribe to DNB shares did not have a big impact on the government in terms of finance because there are several local banks as well as foreign banks that are ready to finance the implementation of 5G in Malaysia.

-- BERNAMA