Telekom Malaysia said it is committed to continue playing an active role in the deployment of 5G across the country
Telekom Malaysia announced its withdrawal from a deal to acquire a stake in Malaysia’s 5G network Digital Nasional Berhad (DNB), following the recent announcement by the Malaysian government that it will permit the rollout of a second 5G network in the country from next year.
In a release, Telekom Malaysia said it had filed an announcement with the local stock exchange to notify that the longstop date to fulfill all conditions precedent in the share subscription agreement (SSA) for the subscription of a 20% equity stake in DNB had lapsed. Consequently, the carrier said it had issued a termination notice to DNB, effective immediately.
“Nonetheless, Telekom Malaysia looks forward to the next process and discussion with the Government and the industry on 5G participation across Phase 1 [in which the Government expects DNB’s 5G network to reach 80% service coverage] and Phase 2 [in which the country will shift to two 5G networks], as announced by the Government. Telekom Malaysia is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fiber infrastructure, extensive digital platforms and rollout experience,” the telco said.
The telco said its customers will continue to enjoy 5G services and solutions, as the 5G wholesale access agreement with DNB remains in place.
According to recent reports, Malaysian operators Celcom and Digi Telecommunications have also terminated their respective SSAs with DNB.
The Malaysian government also confirmed that DNB will be taken over by a private entity once it achieves its 5G population coverage target, which is expected to occur by the end of 2023.
The government recently announced it will enable the deployment of a second 5G network in 2024, amid concerns about pricing and competition with the current single state-run network. The government will create a new entity to manage Malaysia’s second 5G network.
Last year, former Prime Minister Muhyiddin Yassin had unveiled an initiative for a state-owned vehicle to own all 5G spectrum, with various carriers using the network infrastructure to provide 5G services across Malaysia via wholesale or MVNO arrangements.
However, Malaysia’s 5G roll-out by DNB had raised concerns over pricing and transparency, as well as worries that a single state-run 5G network would result in a nationalized monopoly.
Due to these concerns, the new prime minister, Anwar Ibrahim, had previously announced that it was reviewing the rollout of the national 5G network due to the lack of transparency, which led to a new scheme for 5G rollouts from next year.
