5G Contract Dispute Deepens as TM Insists Termination Notice Is Legally Grounded
Clash with DNB highlights tensions during Malaysia’s shift to dual-network strategy
KUALA LUMPUR, March 3 — Malaysia’s evolving 5G rollout strategy has triggered a high-profile contractual dispute after Telekom Malaysia Bhd (TM) reaffirmed that its termination of the 5G Access Agreement with Digital Nasional Bhd (DNB) was exercised within its legal rights.
In a statement released today, TM maintained that its notice to end the wholesale access arrangement complies fully with the contractual framework agreed between both parties. The company pointed specifically to clauses governing early termination, which it said are relevant in light of the government’s transition toward a dual 5G network model.
TM stressed that the decision was not taken lightly but followed an extensive internal review of its contractual obligations and strategic positioning. The telecommunications provider added that the agreement itself outlines formal dispute resolution pathways, which it intends to utilise should differences in interpretation persist.
DNB, however, has rejected the termination, asserting that the agreement remains valid and enforceable until October 2032. The state-backed entity argued that early termination provisions are subject to strict conditions that must be fulfilled, and that those thresholds have not been satisfied.
The disagreement comes at a pivotal moment for Malaysia’s digital infrastructure ambitions. Established in March 2021, DNB was initially tasked with leading the country’s 5G deployment under a single wholesale network model. The government’s later decision to move toward a dual-network framework has since reshaped competitive dynamics and raised complex contractual questions.
Industry observers note that disputes of this nature are not uncommon when policy shifts intersect with long-term infrastructure contracts. Legal interpretation, regulatory alignment and commercial strategy often collide when multi-billion-ringgit projects undergo structural recalibration.
Amid the dispute, TM emphasised that its foremost priority is to safeguard service continuity for customers. The company said it is managing the transition carefully to ensure there is no disruption to network performance or user experience.
Analysts believe the eventual resolution could have far-reaching implications for how telecom operators negotiate and structure future agreements under Malaysia’s digital transformation agenda. As stakeholders watch closely, the outcome may set a benchmark for contractual flexibility in rapidly evolving technology sectors.
-wilayah.com.my
