Digital Nasional Berhad (DNB)

History

2023: Frequencies in state ownership. Malaysia has taken a new path towards 5G development

On July 15, 2023, Maxis Broadband, a subsidiary the Malaysian of the telecommunications company Maxis Bhd, announced its intention to sign an agreement state with the infrastructure organization Digital Nasional Berhad (DNB) to provide services on the basis. 5G

While most countries allocate 5G spectrum bands to telecom operators, Malaysia has taken a different path, securing the frequency resource to DNB. At the same time, operators are charged for access to the 5G spectrum. This approach has been repeatedly criticized by participants in the country's telecommunications industry, who complained about the opacity of pricing processes and the risks of monopolizing the industry.

Deployment of fifth generation networks is one of the most important global trends defining global digital development

Four of the five local cellular operators - CelcomDigi, Telekom Malaysia (TM), U Mobile and YTL Communications - have agreed to use DNB infrastructure by providing access to 5G services for their customers. At the same time, Maxis Bhd took a wait and see attitude. On November 2, 2022, that company sought shareholder approval for a proposed DNB infrastructure access agreement. By mid-July 2023, all issues related to the use of the 5G spectrum were resolved, and the operator announced the start of the deployment of 5G services.

{{quote 'DNB remains the only neutral network provider to implement the deployment of 5G infrastructure and networks across the country. Therefore, the conclusion of an agreement on access to the DNB infrastructure will allow Maxis to provide 5G services to its customers, the operator said in a statement. }} As of June 30, 2023, DNB has deployed 5G network infrastructure covering 64.7% of Malaysian communities. In the future, this indicator is planned to be brought to at least 80%: it is expected that such coverage will be provided by the end of 2023.^[1]

2022: Transfer of 70% to private telecom companies

On March 16, 2022, Malaysian authorities announced that they were transferring up to 70% of the shares of the state-owned 5G network operator Digital Nasional Berhad (DNB) to private telecommunications companies amid concerns from the latter that a single fifth-generation state network could hinder competition.

The government will retain the remaining 30% stake in DNB, and the agency will be regulated by the Ministry of Communications.

Malaysia gives 70% of state communications operator to private companies to create national 5G network

The government has confirmed it will continue to stick to its plan to build a single 5G network to maintain policy consistency, but will allow telecoms companies to have equity stakes to speed up infrastructure construction, the finance and communications ministries said in a joint statement.

Major operators Celcom Axiata Bhd, DiGi Telecommunications, Maxis Bhd and U Mobile Sdn Bhd said they welcomed the cabinet decision and would engage with the government and key industry players on further details of the launched model.

DNB also said it would extend a pilot program to provide free 5G services to carriers, originally due to end on March 30, 2022, until June 30, 2022, to facilitate a smooth transition for carriers that have not yet connected to its network.

The commercial pilot project began in December 2021 and was supposed to be completed on March 31, 2022. The pilot project allows Malaysian operators to access the DNB network without charging fees to provide 5G services to their end users. DNB plans to reach 80% of population coverage by 2024.^[2]

Notes