KUALA LUMPUR (Aug 26): Telekom Malaysia Bhd (KL:TM) said on Monday that it is still keen to be involved in the development of the country’s 5G network, despite the collapse of its deal with Digital Nasional Bhd (DNB).
The group, which has submitted its proposal for the setting up of Malaysia's second 5G network infrastructure, aims to be a key partner in the country’s 5G network, either by participating in the 5G second network or by just being a part of the 5G ecosystem.
“We would like to reiterate that we will continue to play a key role in supporting the nation by developing the (5G) ecosystem, ensuring that the nation benefits from the connectivity and digital services," TM's managing director/group CEO Amar Huzaimi Md Deris said.
“The group is committed to provide high quality, converged digital offerings across various segments of its customers. We also continue to offer competitive 5G pricing,” Amar Huzaimi told reporters following TM’s second quarter results briefing (2QFY2024) on Monday.
“We have submitted the proposal for the AIP (Application Information Package), the process that (is) conducted by MCMC (Malaysian Communications and Multimedia Commission). Our 5G services will continue,” he added.
The CEO also shared that TM has requested an extension from DNB to facilitate “some of the outstanding matters that the group has to address". However, he declined to elaborate further.
Last Friday, TM announced that its agreement to acquire a stake in DNB was terminated after its request for additional time to secure shareholders’ approval was declined.
TM had asked DNB for an extension last month, which was not granted, and a subsequent appeal was also rejected.
In June, four mobile network operators — CelcomDigi Bhd (KL:CDB), Maxis Bhd’s (KL:MAXIS) Maxis Broadband Sdn Bhd, the unlisted U Mobile Sdn Bhd and YTL Power International Bhd (KL:YTLPOWR) — had completed their share subscription agreements and acquired a 16.3% stake each in DNB.
DNB is the owner and operator of Malaysia's first 5G network infrastructure.
Initially planned to be the sole 5G network operator, Malaysia has however given the nod for the setting up of a second 5G network infrastructure operator.
Including TM, four mobile network operators have submitted their proposals for the second network model. The others are CelcomDigi, Maxis and U Mobile.
For the second quarter ended June 30, 2024 (2QFY2024), TM's net profit dropped 30.3% to RM396.4 million from RM568.7 million in 2QFY2023, primarily due to a one-off recognition of tax losses in the previous year. Quarterly revenue slipped 1.7% to RM2.91 billion from RM2.96 billion, dragged down by declining voice services.
Shares in TM closed nine sen or 1.31% lower to RM6.76 on Monday, giving it a market capitalisation of RM25.94 billion.