Malaysia expects delays for the country’s second 5G network

In May 2023, the government of Malaysia said it will allow a second 5G network in the country

The deployment of a second 5G network in Malaysia could experience a delay, local press reported, citing the country’s Communications Minister Fahmi Fadzil.

The official said that the main reason behind the delay was the fact that the board of state-run 5G network Digital Nasional Berhad (DNB) needs to be formed before the rollout.

Fahmi also said that a discussion regarding this issue was held with the CEOs of all involved mobile network operators during MWC 2024 in Barcelona, and a letter has been sent to Treasury secretary-general Datuk Johan Mahmood Merican for consideration.

“This process will take some time because it involves legal aspects,” the minister said. “So I leave this matter to a special committee co-chaired by the Communications Ministry and the chief secretary of treasury.”

DNB was set up by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure, which private telecommunications firms would use to offer 5G services to their customers. DNB’s 5G network was deployed by Ericsson.

In May 2023, the Malaysian government announced it will enable the deployment of a second 5G network in 2024, adding that a new entity will be created to manage Malaysia’s second 5G network. The Malaysian authorities had said that the country would shift to a dual 5G network once DNB achieved 80% coverage in populated areas, something that occurred in December 2023. That month, Malaysia’s five major mobile operators signed share subscription agreements to acquire a collective 70% equity stake in DNB.

Under the terms of the deal, local telcos CelcomDigi, Maxis, U Mobile, Telekom Malaysia and YTL Power International agreed to each buy a 14% stake in DNB, with an investment of about $50 million each. Those share subscriptions are expected to be completed between February and April 2024 after due diligence requirements are met, according to the Malaysian government.

Fadzil had said that the government will retain a “golden” share in DNB, as well as the remaining 30% stake. The official also confirmed that the government will hold no stake in the second 5G network.