Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on July 24, 2018

KUALA LUMPUR: Telekom Malaysia Bhd (TM) and Tenaga Nasional Bhd (TNB) have terminated the memorandum of understanding (MoU) signed by the two groups to jointly develop an implementation plan to deliver on the government’s Nationwide Fiberisation Plan (NFP).

The decision to discontinue the MoU was mutual and with immediate effect, they said in their respective statements to Bursa Malaysia yesterday, without stating the reason for the termination.

“Effective today (yesterday), TNB and TM have mutually agreed not to proceed with the collaboration on NFP.

“The discontinuation, however, does not preclude TNB and TM from considering other collaborations, should there be future business opportunities that are beneficial to both parties,” read the TNB statement.

The MoU was signed on Jan 16 by TM’s former managing director and group executive officer Datuk Seri Mohammed Shazalli Ramly and TNB president and chief executive officer Datuk Seri Azman Mohd.

The two government-linked companies had said the collaboration would capitalise on the strength of both parties, enabling the most cost-efficient structure and accelerating the fibre broadband network reach, in line with the government’s move to drive Malaysia’s digital economy.

Communications and Multimedia Minister Gobind Singh Deo said over the weekend that the new government may replace the NFP with the National Connectivity Plan, to allow wider and more extensive Internet accessibility.

Towards this end, Gobind said the ministry was in the process of discussing the change with telecommunication companies.

 

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