The telecommunications company said its wholly-owned unit, Maxis Broadband Sdn Bhd, intends to execute the access agreement for Maxis to gain access to the 5G products and services provided on a wholesale basis by DNB.
In a filing with Bursa Malaysia today, Maxis said it will seek its shareholders approval for the execution of the agreement, at an extraordinary general meeting to be convened in the third quarter.
RHB Investment Bank has been appointed as principal adviser to Maxis for the proposed transaction.
Maxis is the last of the country’s mobile network operators to agree to execute the 5G access agreement with DNB. Telekom Malaysia Bhd, CelcomDigi Bhd, YTL Communications Bhd and U Mobile Bhd have all agreed to the wholesale access agreement.
Maxis said the rationale and benefits of the proposed transaction are due to its commitment to realising Malaysia’s digital ambitions and enhancing Maxis’ converged network solutions.
“DNB remains the single neutral wholesale network provider to undertake the deployment of 5G infrastructure and network nationwide as at the latest practicable date.
“Therefore, the entry into the access agreement with DNB will enable Maxis to provide the 5G services to its customers,” it said.
Cost of 5G operating expenses
The filing indicated the price required of Maxis to pay DNB has yet to be determined and may be subject to periodic reviews conducted by the Malaysian Communications and Multimedia Commission as well as a review by DNB.
However, Maxis said it is expected to incur operating expenses of RM360 million per annum for the national 5G wholesale network product.
Previously on Nov 2, 2022, Maxis sought shareholders’ approval for the proposed entry into the access agreement with DNB but postponed it on Jan 20, 2023, until after the 5G network implementation policy has been finalised by the government.
DNB was appointed by the government on May 31, 2021 as the single neutral wholesale network provider to undertake the deployment of 5G infrastructure and network nationwide.
On May 3 this year, the government announced that the implementation of the 5G network in Malaysia will continue through DNB until it reaches 80% coverage in populated areas by end of 2023 under its initial rollout phase.
Thereafter, the single wholesale network model shall transition to a dual network model where a new entity will be established to develop the second 5G network in Malaysia.