Telekom Malaysia Bhd (TM) has issued a termination notice to Digital Nasional Bhd (DNB), effectively ending its plan to acquire a 20% equity stake in the company. This move comes after TM filed a Bursa Announcement, stating that the longstop date to fulfil all conditions precedent in the Share Subscription Agreement (SSA) had lapsed.
Despite the termination of the SSA, TM is committed to playing an active role in the implementation of 5G technology in Malaysia. The company plans to leverage its nationwide fibre infrastructure, extensive digital platforms, including data centers and edge nodes, as well as its vast experience in rollout to achieve this goal.
The termination of the SSA is unlikely to impact earnings. TM customers using Unifi Mobile and TM One will continue to utilise 5G services and solutions, as the 5G wholesale Access Agreement remains in place.
In related news recently, a task force will be established to ensure that Digital Nasional Berhad’s (DNB) 5G network provides 80% coverage in the country. The Communications and Digital Minister, Fahmi Fadzil, stated that the task force’s objective is to also ensure a seamless transition to the dual 5G network by early 2024.
Malaysia had announced plans to launch a second 5G network in January 2024 to address concerns about transparency and pricing and prevent a government-owned network from creating a national monopoly. The implementation of the 5G network will be the key to its success.
