Digital Nasional Berhad (DNB) no longer requires financial support from the Malaysian government, following the completion of a RM5.2 billion syndicated Islamic term financing facility involving five financial institutions. Communications Minister Datuk Seri Fahmi Fadzil confirmed today that the government’s financial obligations to the national 5G network operator had been reduced to zero at the end of September 2026.

This development refinances DNB’s government-guaranteed revolving credit facility, which expired on 29 September, giving the company a longer-term funding structure for its operations and network development. Fahmi said the government would not provide further financial support, but would retain a special share in DNB to safeguard national interests and oversee strategic matters.

The refinancing also paves the way for DNB to transition to equal ownership among its three remaining mobile network operator (MNO) shareholders: CelcomDigi, Maxis Broadband and YTL Power International, the parent company of Yes 5G. Under the arrangement, the Ministry of Finance Incorporated (MoF Inc) will relinquish its ordinary shares while retaining its special share, with the ownership transition expected to take place in the fourth quarter of 2026.

With its financial position strengthened, DNB plans to focus on expanding 5G adoption among businesses and industries. Its CEO, Datuk Azman Ismail, said the company would work with its mobile network operator (MNO) shareholders, customers and technology partners to develop practical 5G applications across sectors such as manufacturing, logistics, healthcare, education, agriculture and smart cities, including among micro, small and medium-sized enterprises (MSMEs).

Azman said 5G adoption could help businesses improve operational efficiency, reduce costs, make better data-driven decisions and reach new markets. Reliable connectivity will also be crucial for supporting data-intensive and artificial intelligence (AI)-powered applications.

DNB expects growing 5G usage and revenue from its existing wholesale access agreements with telecommunications operators to help meet its financing obligations. It will also continue investing in network quality, capacity and resilience as Malaysia advances its dual-network 5G framework.

DNB was also recently awarded additional spectrum that restores its full 240MHz allocation. Effective October 1, the company secured the full 100MHz in the 3.3GHz to 3.4GHz band, bringing its contiguous mid-band spectrum holdings to 200MHz when combined with its existing allocation in the 3.4GHz to 3.5GHz band.

The additional capacity is expected to support higher network demand and technologies such as 5G Advanced. In April, CelcomDigi, Maxis and YTL Communications also injected RM202 million each into DNB to cover spectrum fees and working capital requirements.

(Source: Bernama)

Updated 1:03 pm, Mon, 19 October 26