Telcos restricted to single equity stake in second 5G network

KUALA LUMPUR: Mobile network operators (MNOs) involved in Malaysia’s second 5G network are restricted to holding equity in only one entity, deputy communications minister Teo Nie Ching said today.

She said this measure aims to foster healthy competition between the two entities in developing Malaysia’s 5G network infrastructure, ensuring high-quality services for the public.

Under the MNOs and Digital Nasional Bhd (DNB) agreement, she said each MNO must choose to invest in DNB (entity A) or that for the second 5G network (entity B).

“After the conclusion of the applicant information package (AIP) process, the successful tenderer will lead entity B, while unsuccessful bidders will remain in entity A.

“Those in entity B will sell their shares in DNB, ensuring the formation of two distinct entities,” she said during a question-and-answer session in the Dewan Rakyat today in response to Chong Zhemin (PH-Kampar) about whether the government would prohibit the same telco company from holding equity in both 5G network companies.

The Malaysian Communications and Multimedia Commission has been tasked with selecting a mobile network service provider to develop Malaysia’s second 5G network, commencing with the AIP process on July 1, 2024.

Four MNOs – YTL Power International, CelcomDigi, Maxis and U Mobile – had finalised a share subscription agreement with DNB and the Ministry of Finance Incorporated (MoF Inc) on Dec 1, 2023, paving the way for the transition to the 5G dual wholesale network model.

Regarding the distribution of DNB’s equity to telco companies, Teo said the shareholding structure would be adjusted to 30% for MoF Inc and 14% for each MNO, following Telekom Malaysia’s completion of its share subscription agreement with MoF Inc and DNB by Aug 21, 2024.

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AFAIK, around 2012, the government instructed TM HSBB Fibre to give access to other ISPs like Astro, Maxis and Digi, as per MSAP terms.
....... Thereafter, Maxis began contracting with housing developers to exclusively lay Maxis fibre cables in their new Taman/s, in order to have a captive market, but Maxis's "backhaul" connection to the Internet for their "exclusive" new Taman/s was still via TM HSBB Fibre network. Before that, most old/existing Taman/s had TM fibre cables deployed in their backlanes whose residents might subscribe to ISPs other than TM Unifi Fibre if there were available ports. Eg .......

https://www.maxis.com.my/ms/about-maxis/new...omes-in-melaka/ - Maxis dan Teladan Setia bekerjasama untuk membawa kesalinghubungan fiber ke lebih ramai penduduk Melaka
23 Mar 2022

- Perkongsian bakal membawa kesalinghubungan fiber ke lebih 2,100 penduduk di Taman Bertam Heights, Melaka
- Memanfaatkan binaan fiber Maxis untuk membawa kesalinghubungan yang lancar melalui pelan Maxis Home Fibre setelah serahan milikan kosong
- Pelan Maxis Home Fibre menawarkan kelajuan pantas sehingga 800Mbps dan pengalaman WiFi yang dipertingkatkan

IOW, Maxis does not has it's own HSBB Fibre network like TM.

TIME Fibre mostly services many condos and apartments, not TM Unifi Fibre. Was this by government arrangement.?
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In short, gov setup an empty shell company, in which the empty shell company borrowred billion ringgit of loan from bank using gov as guarantor.

Spent 5B, gov paid 450M, telcos paid 300M.

Now government aaid telcos shall bail this company out entirely and also pay back gov 450M.

This is classic failed gov business looking for bailout …

Look at the way DNB spent their 5B,

1. Office in one of the most expensive place in KL
2. Advertise on most expensive billboard all around KL (they only have 6 telcos as customers)
3. Heard their employees also paid in premium
4. Have events/campaigns everywhere to promote 5G some even overseas

This is a forced bail out. Umobile fortunately doesnt have to be part of this bailout.

If 5 companies paying the bill, each company has to fork out 1B over 10 years meaning 100M per annum from their profit to settle DNB 5B debt.

Biggest winner is Ericason getting 5B out of DNB deal.

80% from Dec 2023 to 82% Dec 2024 you will understand how DNB now works ...

Madani forced telco to take stake by offering 2nd 5G network deal similar to giving ice cream to children.. after MCMC announcement 2nd 5G to UM no news at all.

My area and another area near botanic klang 5G Tower install on during May 2024 timeframe until now about we enter 2025 there's no operation of it. I saw only on weekend Saturday rarely some from DNB( Saw vehicles and uniform) installing equipment inside.

Previously not a case after get approval they work it around 2 months. Seems DNB struggling financially due Govt rushed them to reach 80% in a year