Digital Nasional Berhad (DNB), the state-run entity behind Malaysia’s wholesale 5G network, rejected a call by Telekom Malaysia (TM) for more time to approve a share subscription agreement, terminating the operator’s stake in the nationwide infrastructure.
TM’s appeal last week for an extension until the end of the year for shareholders to approve the equity deal was turned down.
In a stock market filing, the operator stated its 5G offering would not be impacted by the move as its wholesale service subscription from DNB remains in place. TM noted it will continue to support the “5G ecosystem in Malaysia and provide high-quality converged digital offerings” across various segments.
Four of the country’s five major mobile players backed the deal, with CelcomDigi and U Mobile the last to sign-up in June.
Without TM, the Ministry of Finance’s holding in the special purpose vehicle increases from 30 per cent to 34.9 per cent, with CelcomDigi, Maxis, U Mobile and YTL Communications each owning a 16.3 per cent interest.
The status of the country’s proposed dual 5G wholesale network is in question since support for the share subscription deal from all operators is a requirement for moving ahead with a second.
TM’s statement added the operator will continue to play a key role in supporting the nation’s 5G ecosystem and transition to the 5G dual network.
DNB targets 85 per cent population coverage of its 5G wholesale network by end-2024.
