Telekom Malaysia Announces Termination of Share Subscription Agreement with DNB

Reported by Srikapardhi May 12th, 2023 at 09:22 am

Telekom Malaysia has joined the ranks of companies withdrawing from an agreement to acquire an equity stake in Digital Nasional Berhad. Following the government's recent announcement permitting the deployment of a second 5G network.

Highlights

Telekom Malaysia has terminated its share subscription agreement for a 20 percent equity stake in DNB.
TM remains committed to playing an active role in 5G implementation.
TM has also confirmed that its customers of Unifi Mobile and TM One will continue to enjoy 5G services.

Telekom Malaysia (TM) has terminated its share subscription agreement (SSA) for a 20 percent equity stake in Digital Nasional Berhad (DNB), according to the Bursa announcement (local exchange) filed on May 10, 2023. The announcement stated that the longstop date for fulfilling all conditions precedent in the SSA had lapsed, resulting in TM issuing a termination notice to DNB with immediate effect.

Also Read: Malaysia to Allow Second 5G Network Deployment, Telcos Respond

TM Remains Committed to 5G implementation

Despite the setback, TM remains committed to playing an active role in 5G implementation and looks forward to discussions with the government and industry on 5G participation in Phase 1 (towards 80 percent service coverage by DNB) and Phase 2 (shift to two networks), as announced by the government on May 3, 2023.

The company plans to leverage its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes), and rollout experience to support the effort.

Continuity of 5G Services for TM Customers

According to the statement, TM has also confirmed that its customers of Unifi Mobile and TM One will continue to enjoy 5G services and solutions as the 5G wholesale Access Agreement remains in place.

In a statement, TM reiterated its commitment to serving as a trusted partner to grow Malaysia's overall connectivity and digital ecosystem, including 5G. The company aims to shape a Digital Malaysia through technology that empowers communities, businesses, and government.

Also Read: Telekom Malaysia Completes Fibre Optic Network Hub Across Sabah and Sarawak

TM Joins Other Companies in Terminating SSAs with DNB

Telekom Malaysia (TM) has joined the ranks of companies withdrawing from an agreement to acquire an equity stake in Digital Nasional Berhad (DNB). Following the government's recent announcement permitting the deployment of a second 5G network, TM, along with Celcom and Digi Telecommunications, terminated their respective share subscription agreements (SSAs) with DNB, effective from May 3, 2023.

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Srikapardhi Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.