Why did Opcom and Global Forway end their 5G venture?

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Opcom and Global Forway Terminate 5G Collaboration Due to Unsuccessful Contract Acquisition

Opcom Holdings Bhd and Global Forway have mutually agreed to end their collaborative efforts in the 5G sector. This decision stems from their inability to secure the intended contracts for which the partnership was formed. The termination is not expected to have a material financial impact on Opcom.
Failure to Secure Contracts Led to Termination

The primary reason cited for the dissolution of the collaboration agreement between Opcom Holdings Bhd and Global Forway is the unsuccessful acquisition of intended contracts. This lack of success in obtaining project commitments ultimately led both parties to conclude that continuing the venture would not be beneficial.
Joint Venture Company Formed for 5G Expansion

The partnership originally aimed to establish a joint venture company named Opcom Vision Sdn Bhd. This entity was intended to be a 60:40 venture between Opcom and Global Forway, specifically to facilitate Opcom's expansion into the burgeoning 5G sector.
No Material Financial Impact Expected for Opcom

Opcom Holdings Bhd has stated that the termination of this collaboration agreement will not have any significant financial consequences for the company or its subsidiaries. This assessment suggests that the venture had not yet reached a stage where its cessation would cause material financial distress.
Global Forway's Expertise Was Key to Original Plan

The initial announcement in October 2021 highlighted that Global Forway possessed the requisite licenses and expertise. These capabilities were identified as crucial for Opcom to broaden its service offerings, which were planned to include value-added services such as dedicated internet access, leased lines, managed security monitoring, and data centre services.

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Why did Opcom and Global Forway end their 5G venture?

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