Digi signs agreement with DNB to access Malaysia’s 5G Single Wholesale Network

Press Release
October 31, 2022

Subang Jaya, 31 October 2022 – The Board of Directors of Digi.Com Berhad (“Digi” or the “Company”) announced in a filing to Bursa Malaysia today that Digi Telecommunications Sdn Bhd (“DigiTel”) has signed an Access Agreement (“AA”) with Digital Nasional Berhad (“DNB”) for access to Malaysia’s 5G Single Wholesale Network (“SWN”). This agreement will enable the company to enrich its current portfolio of services with the gradual deployment of 5G retail services for consumers and enterprise customers.

This announcement comes three weeks after Digi signed a conditional share subscription agreement to take a 12.5% equity stake in DNB, the company responsible to deploy and manage the country’s 5G network and provide wholesale 5G services to the licensed mobile network operators (“MNOs”).

The recently concluded AA incorporates the terms of the Reference Access Offer (“RAO”) published by DNB on 31 March 2022, with improvements to a few key terms. The updated RAO is expected to be published upon approval by the Malaysian Communications and Multimedia Commission (“MCMC”). The Company will continue to work together with DNB, MCMC and key stakeholders to enable the provision of affordable and reliable 5G services for Malaysian consumers and enterprises in a sustainable manner.

By signing the AA, Digi confirms that it will subscribe to DNB’s 5G wholesale network for a period of 10 years, to develop and offer end customer retail services which includes 5G connectivity. Digi will also be able to develop innovative 5G solutions and value-added services internally and with partners to meet future enterprise customer needs.

Digi will continue to invest in and operate its own core network, nationwide 4G+ network and data centers. With the 5G SWN model, Digi expects a gradual shift from a traditional network ownership model towards a network leasing model for 5G.

The Company remains fully committed to contribute towards a successful deployment of 5G for Malaysia and all Malaysians. Digi continues its ongoing 5G network testing with its technology partners and DNB, towards enabling its customers to soon enjoy 5G services. More details on Digi’s 5G offerings will be shared in due course.

The Company strongly believes in the value creation of 5G, and its potential benefits to be derived by businesses, customers, and the nation. Digi looks forward to working with the Malaysian Government, MCMC, DNB and industry, lending its expertise in customer insights, supply chain, infrastructure, and experienced technical talents to accelerate Malaysia’s digital transformation.

For more information, please refer to the related Bursa Announcement here.