LOCAL telco Digi Telecommunications Sdn Bhd has signed an access agreement with national 5G operator Digital Nasional Bhd (DNB) to tap into the country’s 5G single wholesale network (SWN).
The agreement will enable Digi to enrich its current portfolio of services with the gradual deployment of 5G retail services for its consumers and enterprise customers, Digi’s board of directors said in a filing with Bursa Malaysia today.
This comes three weeks after Digi signed a conditional share subscription agreement to take a 12.5% equity stake in DNB, the company responsible to deploy and manage the country’s 5G network and provide wholesale 5G services to licensed mobile network operators (MNOs).
The recently concluded access agreement Digi and DNB inked incorporates the terms of the Reference Access Offer (RAO) published by DNB on Mar 31, 2022, with “improvements” to a few key terms.
“The updated RAO is expected to be published upon approval by the Malaysian Communications and Multimedia Commission (MCMC),” Digi said in a statement.
“The company will continue to work together with DNB, MCMC and key stakeholders to enable the provision of affordable and reliable 5G services for Malaysian consumers and enterprises in a sustainable manner,” it added.
By signing the access agreement, Digi confirms that it will subscribe to DNB’s 5G wholesale network for a period of 10 years and develop and offer end-customer retail services, which include 5G connectivity.
Digi will also be able to develop innovative 5G solutions and value-added services, internally and with partners, to meet future enterprise customer needs.
“More details soon”
“Digi continues its ongoing 5G network testing with its technology partners and DNB, towards enabling its customers to soon enjoy 5G services. More details on Digi’s 5G offerings will be shared in due course.”
With the 5G SWN model, Digi expects a gradual shift from a traditional network ownership model towards a network leasing model for 5G.
“Digi will continue to invest in and operate its own core network, nationwide 4G+ network and data centers,” the company said further.
Meanwhile, The Edge Market reports that four other MNOs – Telekom Malaysia Bhd (TM), Celcom Axiata Bhd, YTL Communications Sdn Bhd (YES) and U Mobile Sdn Bhd – will offer 5G services to their customers as they have also executed their respective access agreements with DNB.
However, only four of the five companies have taken up equity stakes in DNB, a contentious issue that dragged on for months and saw Maxis Bhd and U Mobile Sdn Bhd drop out in the process.
Celcom and Digi will each take up a 12.5% stake in DNB, YES and TM will hold 20% each while the Finance Ministry will hold the remaining 35%.
Separately, Celcom customers who have 5G-enabled devices and are subscribed to selected Celcom postpaid and prepaid plans will automatically be able to access 5G network services within 5G coverage areas beginning Nov 1, 2022.
In a statement today, Celcom added that it is waiving the 5G access fee during this introductory period for customers to enjoy 5G services, as per their internet quota from their existing plans, until the year-end. – Oct 31, 2022
Main photo credit: The Edge Markets
