TM to end 5G deal with DNB, switch to U Mobile

 The termination of Telekom Malaysia's agreement with Digital Nasional Bhd is subject to regulatory consent from MCMC.

Telekom Malaysia said it issued a notice to DNB and MCMC yesterday to terminate the Oct 30, 2022 access agreement with Malaysia’s state-owned special-purpose vehicle.

PETALING JAYA:

 Telekom Malaysia plans to discontinue its 5G agreement with Digital Nasional Bhd (DNB) and will obtain 5G connectivity via U Mobile Sdn Bhd.

In a filing with Bursa Malaysia, the group said it issued a notice yesterday to both DNB and the Malaysian Communications and Multimedia Commission (MCMC) to terminate the Oct 30, 2022 access agreement.

The unutilised prepaid capacity under the agreement with DNB, amounting to RM127.3 million as of Dec 31, will no longer be available.

As per the access agreement, TM can cancel the contract within 30 days after 5G services are commercially launched by a different operator.

U Mobile launched its 5G services on Jan 26, enabling TM to trigger its contract termination option.

In the Bursa filing, TM said U Mobile yesterday accepted a letter of award from TM Technology Services, a wholly-owned subsidiary of TM, to provide 5G services.

The termination of the DNB agreement is subject to regulatory consent from MCMC.

U Mobile was selected to implement the nation’s second 5G network in November 2024.

Putrajaya agreed to allow a second 5G network after shares in DNB were sold to Maxis, CelcomDigi, U Mobile, and YTL Communications.

The government, via the Minister of Finance Incorporated, currently holds a 41.67% stake in DNB following U Mobile’s exit last May. The three remaining telcos – CelcomDigi, Maxis and YTL – hold 19.44% each. - FMT