KUALA LUMPUR (Reuters) – Telekom Malaysia (TM) has signed a 10-year, 2 billion ringgit ($475.74 million) fibre leasing deal with Digital Nasional Berhad, a state agency tasked with deploying 5G services in Malaysia, the company said in a bourse filing on Thursday.
Under the term sheet signed, TM will provide fibre connectivity services to DNB to support the agency’s efforts in rolling out 5G.
The parties aim to finalise and execute a definitive agreement on detailed terms within four months, TM said.
The deal is the first long-term agreement signed between a telecoms firm and DNB, an agency under the finance ministry and the sole licensee for 5G spectrum in Malaysia.
DNB launched 5G services on Wednesday with TM and YTL Communications, a unit of Malaysian conglomerate YTL Corporation, as the first operators in the country to provide the service to their customers, state news agency Bernama reported.
Malaysia, however, is reconsidering its plan for a single wholesale 5G network, following pricing and transparency concerns raised by mobile operators.
Four wireless carriers have recommended the government allows a second 5G provider, in order to introduce competition and speed up the rollout, Reuters reported this week.
The Cabinet is expected to make a decision on whether to proceed with a single network by January.
($1 = 4.2040 ringgit)
(Reporting by Rozanna Latiff; Editing by Martin Petty)
