“On the detail side though, the implementation stage would be through our CelcomDigi associate, which is the largest mobile operator in Malaysia,” Axiata chairman Shahril Ridzuan said after the group’s 31st annual general meeting today.

“There are still a lot of details to be worked out, and we look forward to those discussions with the government and as more details are made available, we will see how Axiata can assist,” he added.

It was reported this month that the country plans to adopt a dual network model for its 5G rollout once Digital Nasional Bhd (DNB) has reached 80% coverage of populated areas, projected to take place by the end of this year. 

DNB was set up by the finance ministry in 2021 as a special purpose vehicle to develop the country’s 5G spectrum infrastructure, which private telecommunications firms would utilise to offer services to their customers. 

The rationale behind the formation of a second 5G network was to avoid “a single point of failure”, according to the government.

Following Putrajaya’s announcement to allow the second network, CelcomDigi then terminated the respective agreements of its subsidiaries, Digi Telecommunications Sdn Bhd and Celcom Mobile Sdn Bhd, to acquire a 12.5% stake each in DNB.

Prior to that announcement, Digi and Celcom – as well as YTL Communications Sdn Bhd and Telekom Malaysia Bhd – had agreed to collectively take up a 65% stake in DNB.

The other two mobile network operators, Maxis Bhd and U Mobile Sdn Bhd, in contrast, chose not to participate saying that being a minority shareholder in DNB would bring them no advantages.

As at 4.14pm, CelcomDigi’s share price was down 5 sen or 1.69% lower at RM2.91, giving it a market capitalisation of RM26.71 billion.