Malaysian telecommunications companies Celcom Digi, Maxis, Telekom Malaysia, U Mobile, and YTL Communications have successfully concluded discussions to acquire stakes in the state 5G agency Digital Nasional Berhad (DNB). The agreement between these firms and the government includes provisions for equity participation and access to 5G services.

This development marks a significant step towards finalizing Malaysia’s 5G rollout plans, which had previously faced prolonged negotiations. Initially, the government announced in 2021 that the state-owned DNB would possess the entire 5G spectrum, with carriers utilizing the infrastructure to offer mobile services. However, this plan raised concerns within the industry regarding pricing, transparency, and potential monopolistic practices, Reuters reported.

To address these concerns, the mobile operators agreed in October of the previous year to acquire 70 percent of DNB’s stake, aiming to resolve the impasse. Unfortunately, this agreement fell through when the newly elected administration of Prime Minister Anwar Ibrahim announced a review of the government’s 5G strategy after taking power in November.

In May of the current year, the government announced plans to allow a second 5G operator to enter the market when DNB’s coverage reaches 80 percent of populated areas next year.

On Friday, the communications ministry issued a statement confirming that the telecom firms will undertake the necessary governance actions to finalize the shareholding process within DNB. However, specific details regarding the equity distribution and the value of the deal were not disclosed.

Maxis Berhad, the last major carrier, agreed to access DNB’s network last week. Other carriers had previously signed the deal last year, paving the way for the subsequent rollout of 5G services to customers.