Telekom Malaysia (TM) recently received a termination notice from the state-run 5G network Digital Nasional Berhad (DNB) regarding their share subscription agreement (SSA). This development is highlighted by TM’s failure to obtain the shareholder’s approval by the original deadline of August 21, 2024, following the agreement signed on December 1, 2023.
In an official release, TM stated that it sought more time to secure shareholder approval but was unsuccessful. This, however, does not impact TM’s current 5G offerings to its customers. The telco emphasized its commitment to providing high-quality digital services and supporting the nation’s 5G ecosystem. “The company is committed to providing high-quality converged digital offerings across various segments of its customers. TM will continue to play a key role in supporting the nation’s 5G ecosystem and transition to the 5G dual network,” the statement read.
With the termination, local telcos CelcomDigi, Maxis, YTL, and U Mobile each now hold a 16.3% stake in DNB. These operators have submitted bids to build Malaysia’s second 5G network, and the government is expected to select the winning carrier by the end of the year.
According to a ministerial order dated June 21, 2024, the selected carrier will be granted spectrum blocks, including two 20MHz blocks in the 700MHz band and a 100MHz block in the 3.5GHz band. Upon selection, the winning telco will divest its stake in DNB, while the remaining telcos continue to operate and expand the existing 5G network. Currently, all mobile operators in Malaysia offer 5G services via DNB’s network.
The Malaysian government had announced in May 2023 plans to deploy a dual 5G network once DNB achieved 80% coverage in populated areas. This milestone was reached in December 2023, thus paving the way for the second network. By the end of April 2024, DNB had achieved 81.5% coverage with a 39.2% 5G adoption rate. The total number of 5G subscriptions in Malaysia stood at 13.2 million at that time.
