KUALA LUMPUR (March 3): Digital Nasional Bhd said on Tuesday that the 5G access agreement with Telekom Malaysia Bhd (KL:TM) is still in force even as the state-owned fixed-line operator sought an early end to the deal.
The access agreement covers TM up to October 2032 and includes terms governing early termination, Digital Nasional said in a statement. TM has not exercised its right for early termination in accordance with the specific conditions of the access agreement, Digital Nasional contended.
Digital Nasional “does not accept TM’s notice to terminate the access agreement”, the company said. “In the meantime, the access agreement remains valid, binding and enforceable.”
The statement follows TM’s announcement on Feb 25 of its plan to terminate the agreement and instead access 5G services through U Mobile Sdn Bhd. Termination of the agreement is still subject to regulatory consent from the Malaysian Communications and Multimedia Commission.
Digital Nasional was set up by the government to roll out Malaysia's first 5G infrastructure across populated and rural areas to be leased out to mobile network operators. U Mobile, controlled by tycoon Tan Sri Vincent Tan, was selected in November 2024 to deploy Malaysia’s second 5G network.
On Tuesday, Digital Nasional said it will take necessary steps to safeguard its interests and reserves its rights under the access agreement and at law.
“We remain committed to ensuring the uninterrupted service, stability, reliability and security of the national 5G network for all of DNB’s stakeholders and their end users,” the company added.