Recently, we reported that the government is setting up a task force to ensure that Digital Nasional Berhad (DNB) achieves 80% coverage of its 5G network and facilitates a smooth transition to a dual 5G network by early 2024 and a private entity will take over DNB once the goal is met.
Malay Mail reports that Communications and Digital Minister Fahmi Fadzil stated that the termination of the share subscription agreement (SSA) between Telekom Malaysia Bhd (TM) and DNB will not have an impact on the implementation of Malaysia’s 5G network.
He reassured that the country’s 5G network deployment had already reached 61.7% as of 30 April and is expected to reach 80% by the end of the year.
Fahmi explained that once the 80% milestone is achieved, the transition from a single wholesale network to a dual network will take place. He clarified that TM’s announcement complied with the agreement’s terms, which required them to inform Bursa Malaysia about the termination of previous discussions and the withdrawal of all previously agreed points. However, new discussions will commence under the revised terms.
A couple of days ago, TM issued a termination notice to DNB, effective immediately, in accordance with the terms of the share subscription agreement to acquire a 20% equity stake in DNB.
The termination occurred after the longstop date for fulfilling all conditions precedents under the SSA had passed, as stated in the filing with Bursa Malaysia.
