TM asserts termination of 5G deal valid after DNB disputes exit

2026-03-03 - 06:43

Telekom Malaysia Bhd announced last week that it would terminate its deal with DNB and obtain 5G connectivity via U Mobile. (Telekom Malaysia pic) PETALING JAYA: Telekom Malaysia Bhd (TM) has asserted that the termination of its 5G agreement with Digital Nasional Bhd (DNB) is valid, despite DNB disputing the company’s exit from the access agreement. TM said 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. “This decision was made following a thorough analysis of all legal rights and obligations as per the access agreement. TM maintains that its termination notice is valid and has reserved all its rights. “The access agreement provides mechanisms for resolving differences in interpretation between the parties, and TM will pursue the appropriate processes under the agreement,” it said in a statement. TM also said its priority was ensuring that its services continue uninterrupted as it transitions to U Mobile Sdn Bhd’s 5G network. Last week, TM announced that it would terminate the 5G deal inked with DNB on Oct 30, 2022 and obtain 5G connectivity via U Mobile. It said that as per the access agreement, TM could cancel the contract within 30 days after 5G services are commercially launched by a different operator. However, DNB rejected TM’s notice and insisted that the contract, which was until October 2032, remained “valid, binding and enforceable”. DNB claimed that TM did not exercise its early termination rights in compliance with the conditions stated in the agreement. The termination of the DNB agreement is subject to regulatory consent from the Malaysian Communications and Multimedia Commission. 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, 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.