She said this measure aims to foster healthy competition between the two entities in developing Malaysia’s 5G network infrastructure, ensuring high-quality services for the public.

Under the MNOs and Digital Nasional Bhd (DNB) agreement, she said each MNO must choose to invest in DNB (entity A) or that for the second 5G network (entity B).

“After the conclusion of the applicant information package (AIP) process, the successful tenderer will lead entity B, while unsuccessful bidders will remain in entity A.

“Those in entity B will sell their shares in DNB, ensuring the formation of two distinct entities,” she said during a question-and-answer session in the Dewan Rakyat today in response to Chong Zhemin (PH-Kampar) about whether the government would prohibit the same telco company from holding equity in both 5G network companies.

The Malaysian Communications and Multimedia Commission has been tasked with selecting a mobile network service provider to develop Malaysia’s second 5G network, commencing with the AIP process on July 1, 2024.

Four MNOs – YTL Power International, CelcomDigi, Maxis and U Mobile – had finalised a share subscription agreement with DNB and the Minister of Finance Incorporated (MoF Inc) on Dec 1, 2023, paving the way for the transition to the 5G dual wholesale network model.

Regarding the distribution of DNB’s equity to telco companies, Teo said the shareholding structure would be adjusted to 30% for MoF Inc and 14% for each MNO, following Telekom Malaysia’s completion of its share subscription agreement with MoF Inc and DNB by Aug 21, 2024.