Updated: June 2016
Digi.Com Berhad is listed on Bursa Malaysia Berhad and its mobile service operations are undertaken by its wholly-owned subsidiary, Digi Telecommunications Sdn Bhd.
In May 1995, Digi launched its fully digital GSM1800 services, the first digital mobile telecommunications service in Malaysia. Over the last 20 years, Digi has grown to becomeone of the leading mobile telecommunication operators in Malaysia, with well-established mobile network coverage reaching more than 95% of the population nationwide. Digi’s 4G-LTE network coverage has rapidly expanded to 73%.
Today, Digi is one of Malaysia’s fastest growing telecommunications networks serving over 12.3 million subscribers, in a nation of 30 million people and a mobile penetration exceeding 140%.
As part of the foreign equity conditions on telecommunication licensing requirement, Telenor’s equity interest in Digi was trimmed from 61% to 49% in 2008.
Foreign equity for individual class Network Facilities Provider (NFP) and Network Service Provider (NSP) licences have since been liberalised and are now allowed up to 70% as announced in the 2012 Economic Transformation Programme.
Digi currently holds a NFP licence and a NSP licence, both of which are valid until January 2025, and an Application Service Provider (ASP) licence, which is renewed every year. A licensee may apply for the renewal of its licences prior to expiry. The Malaysian Minister of Communications and Multimedia (previously known as The Malaysian Minister of Information, Communications and Culture), on the recommendation of the Malaysian Communications and Multimedia Commission (SKMM), has the power to approve the renewal of individual licences.
In February 2016, SKMM announced the re-farming of 900MHz and 1800MHz spectrum bands to 4 mobile telecommunication operators ie Maxis, Celcom, Digi and U Mobile, with full implementation starting 1 January 2017 (1800MHz) and 1 July 2017 (900MHz) for 15 years.
SKMM has also indicated that other spectrum bands ie 700MHz, 2300MHz and 2600MHz bands will be reviewed by the end of 2016.
Other leading Malaysian mobile telecommunication industry operators include Maxis and Celcom (subsidiary of Axiata).
The estimated combined mobile service revenue market share of these three leading mobile operators in Malaysia approximates 93%, while the remaining market share is represented by U Mobile and other MVNOs and WiMax operator.
Digi currently contributes 6% of “weighted net revenue” annually to the Universal Service Provision (USP) fund. All licensed operators are able to bid for SKMM issued tenders utilising this USP fund to build and operate specific types of services in underserved areas and communities. Digi has won various bids to provide mobile and broadband services on this basis. Mobile termination local rates and fixed termination local rates are currently set at 0.0365 MYR and 0.0165 MYR per minute effective from 1 January to 30 June 2017 and are regulated under an access pricing regime which is subject to periodic formal review.
On 23 October 2015, the Prime Minister announced in the Budget 2016 that Malaysian consumers will receive rebates equivalent to the amount of GST paid, which will be credited to their prepaid accounts, effective from 1 January to 31 December 2016. Accordingly, Digi has implemented such GST rebates since 1 January 2016.