Telekom Malaysia Bhd (TM) plans to end its 5G access agreement with Digital Nasional Bhd (DNB) and instead obtain 5G services from U Mobile Sdn Bhd, following Malaysia’s dual 5G network framework. The termination requires approval from the Malaysian Communications and Multimedia Commission (MCMC).
TM submitted notice to both MCMC and DNB on Feb 24, 2026, to terminate the agreement, which originally started on Oct 30, 2022. The contract allows TM to exit within 30 days once 5G services are commercially available from another operator. With U Mobile launching its 5G services on Jan 26, 2026, TM has triggered this termination right. Unused prepaid capacity under the DNB agreement, valued at RM127.3 million as of Dec 31, 2025, will no longer be available.
Instead, TM’s unit, TM Technology Services Sdn Bhd, has awarded a three-year 5G contract to U Mobile covering provisioning, integration, activation, testing, optimisation, and billing for multi-operator core network (MOCN) services. The contract is usage-based and starts upon milestone completion. Shareholder approval is not required.
TM said mobile services are a key part of its convergence strategy, linking fixed, mobile, content, and smart services for consumers, SMEs, and enterprises. The dual-network framework allows TM to explore options that enhance competitiveness and long-term value.
TM also acknowledged DNB’s pioneering role in accelerating nationwide 5G deployment and reaffirmed its commitment to collaboration in strengthening Malaysia’s digital infrastructure.
In May 2025, U Mobile signed a RM2.4 billion, 10-year deal with TM to accelerate its nationwide 5G rollout, using TM’s 740,000 km fibre network — the largest in Malaysia — to cover 80% of the population by July 2026.
