Malaysia to launch second 5G network player

This is as local operator DNB hits a coverage target of over 80%.

The Malaysian government is gearing up for a second 5G operator as local telco player Digital Nasional Bhd (DNB) surpassed its coverage target.

The country’s Communications Minister Fahmi Fadzil said that 5G network coverage in Malaysia already reached 80.2% in populated areas as of the end of December 2023 — clearing the final criteria for the creation of a second player.

According to Fahmi, the government’s Special Task Force on 5G will meet to discuss the specific roadmap for setting up the second operator.

“The government will not take long to consider and make an announcement of a shift from single to dual 5G network coverage. After that, the dual 5G [network coverage] can be implemented if the terms agreed by the task force are achieved,” Fahmi said.

Based on previous media reports, Fahmi said that the second 5G operator will be strictly commercial, with no government ownership.

The Malaysian Ministry of Finance (MOF) currently holds a 30% stake in DNB, while the rest is split between the country’s five operators namely Telekom Malaysia, Maxis, U Mobile, YTL and CelcomDigi (via Infranation). Once the second 5G operator is officially greenlighted, the MOF has the option to exit DNB.