KUALA LUMPUR (March 3): Telekom Malaysia Bhd (KL:TM) has asserted that its termination of the 5G access agreement with Digital Nasional Bhd (DNB) is valid.
This follows DNB’s earlier statement on Tuesday that it “does not accept TM’s notice to terminate the access agreement” and its insistence that the pact remains binding, enforceable, and in effect. DNB claimed TM failed to meet specific early-termination conditions in the agreement, which remains binding through 2032.
TM said it had exercised its contractual rights strictly in line with provisions governing early termination and applicable requirements, particularly those related to the implementation of the government’s 5G Dual Network Model.
The company added that the decision was made after a thorough review of all legal rights and obligations under the agreement. “TM maintains that its termination notice is valid and has reserved all its rights,” it said in a statement.
TM also noted that the agreement provides mechanisms to resolve differences in interpretation between the parties, and confirmed it will pursue the appropriate processes under those provisions.
“Our priority remains ensuring uninterrupted service for customers as we manage this transition in a phased and orderly manner,” TM added.
TM announced on Feb 25 that its plan to terminate the agreement and instead access 5G services through U Mobile Sdn Bhd. In response, DNB said it will take the necessary steps to safeguard its interests, and reserves its rights under the access agreement and at law.
DNB 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.
The termination remains subject to regulatory consent from the Malaysian Communications and Multimedia Commission.
By Tuesday’s midday break, shares in TM were up four sen or 0.5% at RM7.51, valuing the group at RM28.82 billion. Over the past one year, the stock has gained 10.9%.