Malaysia's Digital Nasional Berhad (DNB) last week confirmed that Telekom Malaysia’s share subscription agreement (SSA) to buy a stake in the state-run DNB has been terminated.

TM failed to meet the deadline to finalize the agreement to take a stake in the wholesale 5G network.

The carrier had appealed for an extension until the end of the year for shareholders to approve the equity deal, but this was turned down.

Telekom Malaysia signed its SSA, along with CelcomDigi, Maxis, U Mobile, and YTL Power International last year to each take a 14 percent stake in DNB for a collective 70 percent stake.

The remaining 30 percent is owned by the Ministry of Finance (MOF). However, since the withdrawal of TM from the DNB, the number has increased to 34.9 percent, while the other four carriers each hold a 16.3 percent stake.

In a statement, the carrier stated that the termination notice won't impact its ability to provide 5G services.

"This turn of events does not affect TM’s current 5G offerings to the customers as its 5G wholesale service subscription from DNB remains in place. The company is committed to providing high-quality converged digital offerings across various segments of its customers. TM will continue to play a key role in supporting the nation’s 5G ecosystem and transition to the 5G dual network,” said TM.

Launched in 2021, the DNB has seen its network heavily scrutinized by prime minister Anwar Ibrahim's administration over claims of transparency issues, which led to a review of the DNB's plan for a state-owned 5G network, with the DNB quite clear that it was to be only 5G network in the country.

The network is aiming to achieve 85 percent population coverage by the end of the year.

A second national 5G network is set to go ahead in the country to rival the DNB, as approved by the current government, led by Ibrahim.