Does DNB ownership translate to operational control for telcos?

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DNB Ownership Does Not Confer Operational Control to Telcos

Ownership of shares in Digital Nasional Berhad (DNB) by telecommunications companies (telcos) does not automatically grant them operational control over DNB itself. DNB's CEO, Augustus Ralph Marshall, has clarified that telcos are shareholders with specific rights and limitations, akin to those in any public company, and DNB's operational policies and objectives will remain consistent regardless of changes in shareholding.
Shareholder Status and Operational Independence

DNB, the entity tasked with deploying Malaysia's 5G network, operates independently of its shareholders' individual business operations. Marshall emphasised that a telco's shareholding in DNB is distinct from its own operational autonomy. While major telcos like Celcom and Digi, along with Maxis and U Mobile, are referred to as CDMU and are involved with DNB, their role as shareholders does not translate into direct control over DNB's day-to-day functions or strategic direction.
Board Decisions and Shareholder Influence

The ultimate decision-making authority within DNB rests with its board of directors and shareholders, subject to defined limitations. Marshall indicated that while a merged entity of Celcom and Digi might see its shareholding in DNB increase from 12% to approximately 22-23%, this does not inherently grant them additional decision-making power or a guaranteed larger say in DNB's operations. The specific provisions governing such scenarios, including the nomination of board members post-merger, are still under discussion and are expected to be detailed within the next two months.
DNB's Unchanged Objectives and Policies

Regardless of any corporate restructuring among its stakeholders, DNB's fundamental policies, internal processes, and overarching objectives are set to remain unchanged. This commitment ensures the consistent execution of its mandate to roll out the national 5G network. The focus remains on delivering the network's benefits, with the existing governance structure designed to maintain operational integrity and strategic alignment.

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Does DNB ownership translate to operational control for telcos?

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