Maxis Announces Readiness for DNB Share Subscription Agreement Completion
In a significant advancement for Malaysia’s 5G deployment, Maxis Bhd, a leading mobile network operator, has declared its readiness to finalize the share subscription agreement (SSA) with Digital Nasional Bhd (DNB). This announcement signals a potentially accelerated progress in the country’s ambitious 5G rollout plan.
Maxis, standing among the pivotal five mobile network operators (MNOs) steering the national dual 5G network model, is poised to finalize its agreement well within the timeframe stipulated by Communications Minister Fahmi Fadzil. The company conveyed its preparedness in a recent press statement, underscoring its commitment to expedite Malaysia’s journey to widespread 5G connectivity.
“Our aim is to swiftly conclude the SSA process. This step is crucial not only for providing clarity on the 5G rollout but also for harnessing the full potential of 5G for the nation’s benefit,” remarked Goh Seow Eng, CEO of Maxis. He further remarked on the immediate initiatives Maxis is willing to undertake to construct the secondary 5G network, illustrating the company’s drive to propel Malaysia towards its 5G ambitions.
The deadline for MNOs to finalize the SSA for equity acquisition in DNB was announced last Sunday by Minister Fahmi, setting a critical point on June 21. Upon crossing this milestone, efforts to establish the second 5G network will officially commence, marking a new chapter in Malaysia’s digital infrastructure development.
The shift from a singular to a dual 5G network model was unveiled by the government in May of the previous year. Subsequent agreements established in December paved the way for CelcomDigi Bhd, Maxis, U Mobile Sdn Bhd, Telekom Malaysia Bhd, and YTL Communications Sdn Bhd to collectively acquire a 70% equity share in DNB. The terms of the SSAs confirmed an equal division of equity, with each MNO contributing RM233 million towards fulfilling DNB’s financial needs, summing to a total investment of RM1.165 billion.
Fahmi Fadzil also provided an update on the national 5G network’s coverage, which as of April 30, 2024, extended to 81.5% of populated areas. Additionally, the adoption rate of the 5G network stood at 39.2%, demonstrating a substantial uptake of the new technology among Malaysians.
The readiness expressed by Maxis to complete the SSA process is a promising indicator of Malaysia’s accelerated path to achieving comprehensive 5G coverage. It sets a notable precedent for collaboration between the government and mobile network operators, aimed at realizing the extensive economic and societal benefits of 5G technology. The eyes of the nation, and indeed the tech world, will be on Malaysia as it strides forward in this ambitious digital leap.
Following the announcement, Maxis shares saw a slight increase, closing at RM3.66, which nudges the company’s market capitalisation to RM28.67 billion. This financial movement reflects the market’s positive reception to Maxis’s proactive stance on the 5G rollout, portraying confidence in the company’s strategic directions for the future of Malaysian telecommunications.
As Malaysia continues to advance in its 5G journey, the collaboration and swift actions of industry stakeholders like Maxis will undoubtedly play a key role in shaping the nation’s digital landscape. With the completion of the SSA with DNB on the horizon, the countdown to a more connected and technologically advanced Malaysia begins.
