What is Digital Nasional Berhad for?

KUALA LUMPUR, Dec 14 – Deputy President Datuk Seri Mohamad Hasan has asked the government to explain the significant establishment of Digital Nasional Berhad (DNB) in providing 5G services to the country.

He said the special vehicle company under the Ministry of Finance is meant to monopolise the 5G services for 10 years.

“It was allocated with free 5G spectrum, and later to be exclusively sold to telecommunication providers under a Single Wholesale Network or SWN. This effectively gives them the monopoly rights… and the government has yet to explain its rational.

“So, what is the rationale behind the setting up of this DNB? If it is more effective, tell us how its going to be more efffective in the no-competitor 5G services,” he said in a FB posting.

Mohamad who is also deputy chairman of Barisan Nasional also questioned the need for the government getting involved is such a business.

“We also need to know the source of funding the DNB, especially when it announced the 5G services costing RM20 billion in 10 years through bank loan and sukuk.



“The statement that said the financing would not get a government guarantee is absurd because it owns the entity. Of course any risk on the debts will be borne by the government.”

He also said the SWN model has proven disastrous in countries like Mexico, Belarus, Rwanda, Kenya, Russia and South Africa.

“Many countries are reluctant to subscribe to this system because it has many weakness aspects. The risk taken by the government must be made public. They too must address the trust deficit for DNB,” he said.