Why did Malaysia create DNB instead of relying on CDMU networks?

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DNB Was Established to Accelerate Malaysia's 5G Deployment Amidst Industry Delays

Malaysia established Digital Nasional Berhad (DNB) as a government initiative to expedite the nationwide rollout of its 5G network. This decision was prompted by concerns that the existing mobile market, largely controlled by the four major telecommunication companies (CDMU), was falling behind international benchmarks in adopting fifth-generation technology. The perceived delay in 5G introduction and its potential effect on Malaysia's regional competitiveness formed the foundation for the Ministry of Finance's discussions with telecommunication providers.
Concerns Over Lagging 5G Adoption

Globally, the fifth-generation technology standard began its rollout in 2019. However, within Malaysia, the market dynamics, dominated by the big four CDMU companies, were seen as a bottleneck. This led to fears that the country was not keeping pace with other nations in integrating this advanced technology, potentially impacting its standing in the region.
DNB's Mandate for Rapid Deployment

DNB was specifically created to address this lag by facilitating a swift and comprehensive deployment of the 5G network across Malaysia. The agency operates on a wholesale model, charging telecommunication companies for 5G access rather than allowing them to build and manage their own separate networks, which could have led to further fragmentation and delays.
Government Negotiations with Telcos

The Ministry of Finance has been engaged in negotiations with the major telecommunication firms, including DiGi Telecommunications, U Mobile, Celcom Axiata Bhd, and Maxis Bhd. These discussions are centered around the terms of their participation in the DNB framework, including equity stakes and access to the 5G network. The government has set a June 30 deadline for these companies to sign up for network contracts and shares in DNB.

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Why did Malaysia create DNB instead of relying on CDMU networks?

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