Telecommunication companies planning to bid for the dual 5G network need to finalise the share subscription agreement (SSA) within 20 days, says Communications Minister Fahmi Fadzil.
He also said that the Malaysian Communications and Multimedia Commission (MCMC) is expected to announce the tender process for the roll-out’s second network.
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He also said that the Malaysian Communications and Multimedia Commission (MCMC) is expected to announce the tender process for the roll-out’s second network.
Read more at https://shorturl.at/sqv5p
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00I would like to touch a little bit on the 7th of July for the 5G network, and this is related to the decision that has been made in the Prime Minister's Cabinet today,
00:14where the order to the decision of the Prime Minister dated May 3 last year, and also a decision of the Prime Minister on August 23 last year,
00:27the Prime Minister and the Malaysian government have agreed that the implementation of the 5G network will start from one network,
00:38or a single wholesale network, to two networks, a dual network.
00:45As of today, based on a survey by MCMC, until April 30, 2024, the achievement of the 5G network for residential areas has reached 81.5%.
01:06The coverage of populated areas for 5G has reached 81.5%.
01:12Meanwhile, in terms of acceptance, the adoption rate for the 5G network has reached 39.2%.
01:22This shows an increase of 3.8% compared to the end of March this year.
01:29Overall, as of the end of April, there are 13.2 million 5G accounts in our country.
01:40This is a good and positive achievement.
01:44And it certainly shows that in terms of the foundation, the government and the MCMC body are doing well and the people are accepting it well.
01:57The breakdown for the acceptance rate is as follows.
02:05As of the end of April, for individuals, there are 12.78 million users,
02:16while for enterprises, there are 422,609 accounts.
02:26This is a good situation for individuals,
02:33while for PMKS, God willing, in the next week or two,
02:44the MCMC and Maida will sign an agreement to help PMKS companies to accept the use of the 5G network for their businesses.
03:00This is in the process.
03:02Since we have reached more than 80% of the quota,
03:07and since the acceptance rate is satisfactory,
03:15the next step is for telecommunications companies or mobile network operators
03:25to complete the process of the share subscription agreement,
03:29their equity handling in the Digital National Berhad company, DNB.
03:36The Minister has informed that the first meeting of the Directorate for DNB was held yesterday.
03:45The representatives of the telecommunications companies,
03:49each of the five telecommunications companies was represented by a Directorate for DNB,
03:55were given 20 days to make some decisions.
04:00We expect that after that time,
04:04the equity handling in the DNB will be completed by the telecommunications companies.
04:17One of the conditions for the telecommunications companies who want to be involved in the second phase,
04:25is that they must complete the share subscription agreement,
04:31i.e. the equity handling in the DNB.
04:34In a short period of time,
04:38MCMC will announce the tender process
04:43that will allow companies who want to be involved in the second phase,
04:51to submit their own tender.
04:53But the prerequisite is that only companies that have completed the SSA can submit their own tender.
05:03This is the next step that has been decided in the Ministerial Meeting today.
05:24The second question is, why has it taken so long for them to complete the share equity?
05:33To the first question, the final method to be resolved is just to take up that equity stake.
05:41There are some internal business processes.
05:45Some of the telcos requested for additional time so that they can refer to their boards.
05:50Some of the boards may have had to hold EGMs to make certain decisions.
05:57Consequently, there was also a matter of due diligence that had been completed and has been presented.
06:08I am informed, it was reported back to us, that that was what was discussed yesterday in the meeting.
06:19So they have 20 days to work on this.
06:24But it is the intent of this administration to ensure that the second network occurs, that it happens.
06:32There is very much interest among the MNOs on this second network.
06:38But we will only enable those who fulfil the precondition of the share subscription agreement being completed
06:47and they hold equity in D&B before they can participate in the tender process.