Thursday 17 March 2022

Digital Nasional Bhd (Part 1 of 2) : Highway to the Danger Zone

was a massive hit for Kenny Loggins. The hit  single  is from the soundtrack to the 1986 American motion picture Top Gun, the best-selling soundtrack of 1986, and one of the best-selling of all time.

Digital Nasional Bhd,  rightfully emerged as the  Top Gun,  as READ :Govt continues with 5G single wholesale model, offers telcos 70% stake, .

I am sure ,  the Finance Minister Tengku Zafrul is aware of the potential danger that lurks ahead by offering a 70 per cent stake now,  rather than latter.

Metal under tension
Beggin' you to touch and go
Highway to the Danger Zone
Ride into the Danger Zone
Headin' into twilight

Before,  we can even start a conversation about  the merits of selling a 70 per cent stake to mobile network operators ( MNO's) at this point ,  the burning question that should be asked  to and anwsered by the Communications Minister Annuar Musa is why limit the sale to MNO's ONLY?.


2.  Is  this some kind of sick reward to the MNO's  for having sinfully high 40 per cent EBIDTA margins, or in the words of   the Chairman of the MCMC, Dr Fadhullah Suhaimi  READ :  in South Korea financial journalists do not hail the EBIDTA margins of the telcos. “ “No one cares. People talk about the high innovation and services in the market.” Contrast this to Malaysia which is known as the country with the best telco EBIDTA margins. “

3. Why execlude,  the MVNO's  from  having a slice of  the 70 per cent stake in DNB,  considering that they have 14 per cent share of  the mobile market,  which in turn amounts to 6.22 million users and GROWING?

4.  Why RUSH into selling all 70 per cent  in one go,  considering that with the single whole sale Network,  the playing ground between the MNO and MVNO will be on a much leveled footing,  hence there is a strong possibility of MVNO,  of gaining more market share?

Considering that the MNO,  have dumbfully taken the 70 per cent bait, READ : Big four telcos welcome govt's decision to stick with SWN with DNB stake offer for 5G rollout.....


1.  the 70 per cent stake sale is ON  but for NOW ,  the MNO's ONLY need to pay RM1,  AND THEY ALL GET A SEAT ON  THE  BOARD NOW (this way governance and technical issues can be dealt with more effectively at the board level)

2. Plus the value of the stake  can also be determine NOW.  AND the MNO'S  don't need to fork out a single sen NOW as CAPEX

3. But the size of their stake will be based on market share of each MNO and MVNO's in three years time. THIS WAY BOTH MNO AND MVNO HAVE A SOLID REASON TO BE INNOVATIVE  AND CUSTOMER FRIENDLY.  

The communications minister  or perhaps his equally competent  deputy Zahidi Zainulsooner or latter will have to anwser these questions and AMUSE THE NATION.