TM, DNB’s 5G deal termination won’t affect rollout targets, says Fahmi

 The communications minister hopes, however, that Telekom Malaysia and Digital Nasional Bhd will meet to resolve their dispute.

Communications minister Fahmi Fadzil noted that both Telekom Malaysia and Digital Nasional Bhd are licence holders under MCMC.

PUTRAJAYA:

 The termination of the 5G access agreement between Telekom Malaysia and Digital Nasional Bhd will not affect the country’s 5G rollout targets, communications minister Fahmi Fadzil said today.

Fahmi, who is also the unity government’s spokesman, said the dispute between the two companies centred on a commercial contract, and that both companies were licence holders under the Malaysian Communications and Multimedia Commission (MCMC).

“We have achieved our 80% (target), allowing a second network to be established. We do not see this issue affecting the government’s targeted reach of up to 95%.

“However, I hope that both parties can sit down to look into the issues at hand and manage them well,” he said at a post-Cabinet meeting press conference here today.

TM announced on Feb 25 its plan to terminate the 5G deal inked with DNB on Oct 30, 2022, and to obtain 5G connectivity through U Mobile.

However, DNB rejected TM’s notice, insisting that the contract, which was until October 2032, remained “valid, binding and enforceable”.

It claimed that TM did not exercise its early termination rights in compliance with the conditions stated in the agreement.

TM asserted that its termination of the pact was valid, and that it exercised its contractual rights under the agreement in strict compliance with the specific terms concerning early termination of the deal on the 5G dual network model.

The termination remains subject to regulatory consent from MCMC. - FMT