Mobile network operators invest $250 million in state-owned 5G provider
- Malaysian telcos to take 70% stake in state-owned Digital Nasional
- Deal worth $250 million
- CelcomDigi, Maxis Bhd., U Mobile Sdn Bhd., Telekom Malaysia, and YTL Power International involved
- Government to hold remaining 30% stake
- Share-subscription agreements expected to be completed between February and April 2024
- Policy change allows for the formation of a second 5G network in Malaysia
- Digital Nasional’s infrastructure to be used for 5G service rollout
A group of five Malaysian mobile network operators, including CelcomDigi, Maxis Bhd., U Mobile Sdn Bhd., Telekom Malaysia, and YTL Power International, have signed a deal to acquire a combined 70% equity stake in state-owned Digital Nasional. The deal, worth $250 million, will see each telco taking a 14% stake in Digital Nasional. The remaining 30% will be held by the government. This move comes after a policy change allowing for the formation of a second 5G network in Malaysia. The telcos plan to utilize Digital Nasional’s infrastructure to roll out 5G services, preparing for a dual network system. The share-subscription agreements are expected to be completed between February and April 2024.
Public Companies: CelcomDigi (N/A), Maxis Bhd. (N/A), Telekom Malaysia (N/A), YTL Power International (N/A)
Private Companies: U Mobile Sdn Bhd., Digital Nasional
Key People: Fahmi Fadzil (Malaysia’s communications minister)
Factuality Level: 8
Justification: The article provides factual information about the deal between the Malaysian mobile network operators and Digital Nasional. It includes details about the equity stakes, the government’s ownership, and the expected completion timeline. There is no apparent bias or opinion presented in the article, and the information is consistent and logical.
Noise Level: 7
Justification: The article provides relevant information about the deal between Malaysian mobile network operators and Digital Nasional. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the stake distribution and government ownership without exploring the consequences or long-term trends in the 5G industry. The article also does not provide evidence or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: The deal between the Malaysian mobile network operators and Digital Nasional may impact the telecommunications industry and the companies involved, such as CelcomDigi, Maxis Bhd., U Mobile Sdn Bhd., Telekom Malaysia, and YTL Power International.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a financial deal between Malaysian mobile network operators and Digital Nasional, the country’s sole provider of 5G services. While there is no mention of an extreme event, the information provided is relevant to the financial markets and the companies involved.
www.marketwatch.com 
