TM's DNB termination won't affect 5G implementation - minister

The termination of Telekom Malaysia Bhd’s share subscription agreement (SSA) with Digital Nasional Berhad (DNB) will not affect the implementation of the country’s 5G network, said Communications and Digital Minister Fahmi Fadzil.

He said that, as of April 30, the implementation of the 5G network in the country had reached 61.7 percent.

“So, it’s progressing and we expect to reach 80 percent by the end of the year.

“When we reach 80 percent, we will transition from a single wholesale network to dual network,” he said when met at the ‘Majlis Sekalung Budi with the Minister’ at Angkasapuri, in Kuala Lumpur, yesterday.

He said the telecommunication company’s announcement was in line with the terms of the agreement requiring them to inform Bursa Malaysia that the previous talks had ceased and all previously agreed points had been withdrawn.

“After the government announced a new direction for the development and implementation of the 5G network in Malaysia, they had to inform Bursa Malaysia that the previous discussion has stopped and everything that was previously agreed upon has been withdrawn.

“However, a new discussion will start. They (telecommunication companies) can start a fresh discussion because the terms are different now,” he said.

Fahmi added that a task force will also be formed to oversee the implementation of the 5G network in the country.

Yesterday, TM Telekom Malaysia Bhd (TM) issued a termination notice to DNB, effective immediately, pursuant to the terms of the SSA to subscribe to a 20 percent equity stake in DNB.

This was after the longstop date to fulfil all conditions precedents (CPs) under the SSA lapsed, it said in a filing with Bursa Malaysia yesterday.

- Bernama

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