Telekom Malaysia pulled out of its deal to acquire shares in state-owned 5G wholesale company Digital Nasional Berhad (DNB) after the government revealed plans to deploy a second 5G network.
In a statement, Telekom Malaysia revealed it had notified the Malaysian bourse of the termination of its deal with DNB.
The operator explained the deadline to fulfil all conditions for the Share Subscription Agreement of 20% equity in the 5G wholesale company passed. Subscribers will continue to access their 5G services as the 5G wholesale access agreement remains in place.
However, Telekom Malaysia said it will continue to take part in 5G development and is in discussion with the government and industries. Malaysia is currently in phase one of its 5G plan – spreading coverage to 80% of populated areas, and phase two will be the shift to a dual 5G network system.
Malaysia made headlines with its controversial single 5G network scheme, where all operators take an equal share in 5G wholesale company DNB. The previous government argued this would speed up deployment and keep costs low, leading to more affordable connectivity for subscribers.
The current Malaysian government revealed plans to sell off DNB and make it a private entity.