It was reported last week in the local media¹ that the Government of Malaysia may adopt a dual wholesale network model instead of the single wholesale network model, as originally proposed, in the implementation of the 5G mobile telecommunication network in Malaysia. The media also reported that a final decision would be made on 11 March 2022. Our write-up on this can be read here.
 
In a joint press conference held earlier today, the Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, and the Minister of Communications and Multimedia, Tan Sri Annuar Musa, announced that the Government will maintain the single wholesale network model for the rollout of the 5G network in Malaysia.² As per the Government’s original plan, the 5G spectrum will be allocated exclusively to the Government’s wholly-owned special purpose vehicle, Digital Nasional Berhad (‘DNB’), which will then enter into negotiations with telecommunication companies on the further allocation of the spectrum.
 
At the same time, the Government also announced that it will offer 70% equity ownership in DNB to mobile network operators. The equity offering will take place two years ahead of the original schedule and is expected to be completed by end of June 2022.
 
Alert by Natalie Lim (Partner) and Nicole Oh Jia Yi (Associate) of the Technology, Media and Telecommunications Practice of Skrine. 

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