TM terminates equity deal with DNB, Unifi 5G services unaffected

Following the government’s decision to transition from a Single Wholesale Network to a dual 5G network model, TM announced today that it has terminated the Share Subscription Agreement (SSA) with Digital Nasional Berhad (DNB). However, TM has assured that existing Unifi customers can continue to enjoy 5G services as the existing 5G access agreement with DNB is still in place.

In October last year, TM signed the SSA to take a 20% stake in DNB alongside YTL Communications (20%) and CelcomDigi (25%). However, the longstop date to fulfil all conditions have lapsed and TM has sent a termination notice to DNB.

TM says it looks forward to the next process and discussion with the Government and the industry on 5G participation across Phase 1 (towards 80% service coverage by DNB) and Phase 2 (shift to two networks), as announced by the Government on 3 May 2023. TM is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes) and rollout experience.

Last week, CelcomDigi announced that it has terminated their SSA with DNB and they have assured that existing customers can continue to enjoy 5G.

At the moment, DNB is mandated to continue to rollout 5G until it achieves 80% population coverage by the end of this year before a second 5G network is introduced. MCMC COO recently revealed that a private entity will take over DNB once 5G population coverage reaches 80% and the government will divest its interest in the company.