It was reported on 20 June 2024¹ that four mobile network operators (“MNOs”), namely CelcomDigi Berhad (via its wholly-owned subsidiary, Infranation Sdn Bhd), Maxis Broadband Sdn Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd (through YTL Power International Bhd), had, on 20 June 2024, met the conditions precedent for their subscription of a 14% stake each in Digital Nasional Berhad (“DNB”) via their respective share subscription agreements (“SSA”). The fifth MNO, Telekom Malaysia Bhd has until 21 August 2024 to obtain its shareholders’ approval to complete its SSA.² To recap, the five MNOs are supposed to collectively subscribe to a 70% stake in DNB whilst the Malaysian Government holds the remaining 30% and a golden share.
 
With this milestone met, Communications Minister Fahmi Fadzil also announced that the Malaysian Communications and Multimedia Commission (“MCMC”) has been instructed to begin the process of identifying and appointing an operator for the second 5G network. The Communications Minister said that MCMC will issue an Applicant Information Package on 1 July 2024. Fahmi also added that the development of the second network will only be open to MNOs that have completed subscribing for their equity holdings in DNB.³
 
For those interested in an overview of Malaysia’s 5G implementation, some of our previous alerts on this topic can be accessed via the links provided below: 

Alert by Natalie Lim (Partner) and Cheam Tat Sean (Associate) of the Technology, Media and Telecommunications Practice of Skrine.
 

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