KUALA LUMPUR (Aug 26): Malaysia Telekom (KL:TM) said on Monday it remains keen to play a role in the development of the country’s 5G network despite the collapse of a deal with Digital National Bhd (DNB).
The group, which has submitted a proposal for building Malaysia’s second 5G network infrastructure, aims to become a key partner in the country’s 5G network by participating in the second 5G network or by being part of the 5G ecosystem.
“We would like to reiterate that we continue to play a key role in supporting the nation by developing the (5G) ecosystem and enabling its citizens to benefit from connectivity and digital services,” said Amar Huzaimi Mohamed Dheris, TM managing director and group CEO.
“The group is focused on providing high quality and integrated digital services to various customer segments. We will also continue to offer competitive 5G pricing,” Amar Huzaimi told reporters after TM’s second quarter earnings call (Q2FY24) on Monday.
“We have submitted an AIP (Application Information Package) proposal, which is a process that will be carried out by MCMC (Malaysian Communications and Multimedia Commission). Our 5G services will continue,” he added.
The CEO also revealed that TM had requested an extension from DNB to facilitate “some of the outstanding issues that the group has to address”, but he refused to give further details.
Last Friday, TM said it had terminated its agreement to acquire DNB’s shares after its request for additional time to obtain shareholder approval was rejected.
TM sought an extension from DNB last month but was denied, and a subsequent appeal was also rejected.
In June, four mobile network operators – Celcomdigi Bhd (KL:CDB), Maxis Bhd’s (KL:MAXIS) Maxis Broadband Sdn Bhd, unlisted U Mobile Sdn Bhd and YTL Power International Bhd (KL:YTLPOWR) – completed share subscription agreements to acquire 16.3% shares each in DNB.
DNB is the owner and operator of Malaysia’s first 5G network infrastructure.
After initially being expected to be the sole 5G network operator, Malaysia has approved the establishment of a second 5G network infrastructure operator.
Four mobile network operators, including TM, have submitted proposals for the second network model. The other three are CelcomDigi, Maxis and U Mobile.
TM’s net profit for the second quarter ended June 30, 2024 (2QFY24) fell 30.3% to RM396.4 million from RM568.7 million in 2QFY23, mainly due to the recognition of a one-time tax loss in the previous year. Quarterly revenue fell 1.7% to RM2.91 billion from RM2.96 billion, dragged down by a decline in voice services.
TM shares closed down 9 sen, or 1.31%, at 6.76 ringgits on Monday, giving it a market capitalisation of 25.94 billion ringgits.
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