Will DNB cease to exist under the dual 5G network model?

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Digital Nasional Berhad (DNB) Will Continue to Operate Under a New Ownership Structure

Digital Nasional Berhad (DNB) will not cease to exist under the proposed dual 5G network model; instead, its operations and staffing will be taken over by a new entity once DNB achieves 80 per cent 5G population coverage. Following this transition, the Malaysian government will divest its stake, transforming DNB into a fully private company. This shift is part of the government's strategy to implement a dual network system for 5G deployment, aiming to enhance redundancy and avoid a single point of failure.
Transition to a Private Entity

The Malaysian Communications and Multimedia Commission (MCMC) Chief Operating Officer, Datuk Mohd Ali Hanafiah Mohd Yunus, indicated that a new, yet unnamed, entity will assume control of DNB's network operations and workforce. This handover is scheduled to occur after DNB reaches its target of 80 per cent 5G population coverage, a milestone expected by the end of the current year. Subsequently, from the beginning of next year, the government will sell its entire shareholding in DNB, marking its complete privatisation.
Government's Stake Divestment

Currently, DNB operates as a state-owned single wholesale network, established under the purview of the Ministry of Finance. In October 2022, a share subscription agreement (SSA) was signed, allocating a combined 65 per cent equity stake to four telecommunications companies, with the Ministry of Finance retaining the remaining 35 per cent. However, with the government's decision to move towards a dual network model, the future ownership structure is set to change significantly, with the government withdrawing its financial interest entirely.
Rationale for a Dual Network Model

The government's decision to shift from a single wholesale network to a dual network model for 5G deployment was announced by Communications and Digital Minister Fahmi Fadzil. The primary reasons cited for this strategic change are to prevent a single point of failure and to establish redundancy within the 5G infrastructure. This approach aims to ensure greater resilience and reliability for the nation's 5G services.
Impact on Existing Agreements

Following the announcement of the dual network model, CelcomDigi terminated its equity deal with DNB, as the conditions stipulated in the SSA had lapsed. The company stated that this termination would allow them to participate in any new processes, including potential equity participation within the industry's evolving framework. CelcomDigi has assured customers that this termination will not affect their ability to continue using 5G services provided through DNB's existing coverage areas.

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Will DNB cease to exist under the dual 5G network model?

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