KUALA LUMPUR (June 28): U Mobile Sdn Bhd, the fourth largest cellular service provider in the nation by subscriber base, is terminating its 3G radio access network (RAN) sharing agreement with Maxis Bhd.

In an announcement to Bursa Malaysia today, Maxis said its wholly-owned subsidiary Maxis Broadband Sdn Bhd received a termination letter in relation to the Network Sharing and Alliance Agreement (NSA) dated Oct 21, 2011.

Maxis said the termination is a convenience option available to U Mobile under the NSA.

The termination will take place in stages over a period of 18 months with completion on Dec 27, 2018.

Maxis said the termination is not expected to have material effect on its financial results for financial year ending Dec 31, 2017 (FY17).

Maxis' share price fell three sen or 0.53% to RM5.61 at the noon market break, valuing the group at RM42.13 billion.