PUTRAJAYA, March 5 — The dispute over the termination of the contract between Telekom Malaysia Bhd (TM) and Digital Nasional Bhd (DNB) is a commercial contract issue between the two parties and does not affect the government’s target to achieve 95 per cent 5G coverage in populated areas, said Communications Minister Datuk Fahmi Fadzil.
Fahmi Fadzil who is also the Madani Government spokesperson, said in terms of the objective of implementing the 5G network, the government has achieved a coverage rate of 80 per cent which allows for the creation of a second network in line with the transition to a dual-network model.
“We do not see the issue between these two parties (TM and DNB) affecting the implementation of the 95 per cent level of the 5G network in the future,” he said at a press conference after the Cabinet meeting here yesterday.
He said the matter involved a commercial contract dispute between the two companies which are also licensees under the Malaysian Communications and Multimedia Commission (MCMC).
“I hope both parties can sit down to examine the issues faced and can be managed well,” said Fahmi.
Yesterday, TM explained that it had exercised its contractual rights under the 5G Access Agreement by fully complying with the specific terms and conditions regarding early termination as well as the requirements related to the 5G dual-network model.
The telecommunications company insisted that the termination notice was valid and fully retained all its rights.
DNB has reportedly rejected TM’s notice to terminate the 5G agreement, while insisting that the long-term contract is still valid and in force.
According to DNB, the agreement is valid until October 2032 and contains certain conditions to determine how early termination can be implemented.
Therefore, DNB explained that TM did not exercise its right to terminate the contract early in accordance with the conditions set.
