KUALA LUMPUR (Feb 25): Telekom Malaysia Bhd (KL:TM) plans to terminate its 5G access agreement with Digital Nasional Bhd (DNB) and instead access 5G services through U Mobile Sdn Bhd, in line with Malaysia’s dual 5G network framework.
The termination of the DNB agreement is subject to regulatory consent from the Malaysian Communications and Multimedia Commission (MCMC).
In a filing with Bursa Malaysia, the group said it issued a notice to both MCMC and DNB to terminate the access agreement on Feb 24, 2026. The access agreement dated Oct 30, 2022 allows the group to end the agreement within 30 days once 5G services are commercially available from another operator.
On Jan 26, 2026, U Mobile launched its 5G services and issued a reference access offer (RAO), enabling TM to trigger its contract termination option.
As a result, unused prepaid capacity under the DNB agreement, amounting to RM127.3 million as of Dec 31, 2025, will no longer be available.
TM’s wholly owned unit, TM Technology Services Sdn Bhd, instead has issued a letter of award to U Mobile for a three-year contract covering provisioning, integration, activation, testing, optimisation, and billing of 5G multi-operator core network (MOCN) services. U Mobile accepted the letter of award on Feb 24, 2026.
The contract value will be based on usage and agreed rates, with the three-year term starting upon the achievement of agreed milestones. Shareholder approval is not required.
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In a separate statement, TM said mobile services are central to its convergence strategy, linking fixed, mobile, content, and smart services for consumers, SMEs, and enterprises. The government’s dual 5G network framework gives the group an opportunity to explore options that enhance long-term competitiveness and value.
TM also acknowledged DNB’s pioneering role in accelerating Malaysia’s nationwide 5G roll-out and affirmed its commitment to industry collaborations to advance the country’s digital infrastructure ecosystem.
In May 2025, U Mobile signed a RM2.4 billion, 10-year deal with TM to accelerate its nationwide 5G roll-out. TM will provide fibre infrastructure, including leased lines, data centre access, and network connectivity. Using TM’s 740,000km fibre network — the widest in Malaysia — U Mobile aims to cover 80% of the population by July 2026.