U Mobile gets official greenlight to rollout second 5G network

U Mobile has received the official letter of award from the Malaysian Communications and Multimedia Commission (MCMC) for the deployment of the second 5G network in the country. 
 
The mobile operator said in a statement, that it was excited to commence the roll out of its next generation 5G network. It also applauded the government for implementing a 5G Dual Network, enhancing the industry’s sustainability while promoting competition and innovation. 

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U Mobile also assured that with a track record spanning more than 17 years, it is confident in its ability to deliver a state-of-the-art next generation 5G network for Malaysia. It also said that its commitment to innovation will ensure a superior 5G and 5G-Advanced experience for all Malaysians. 

Wong Heang Tuck, chief executive officer, U Mobile, said “U Mobile is honoured to receive the confidence from the Malaysian government and MCMC to implement Malaysia’s newest 5G network.” 

“With this mandate, U Mobile looks forward to playing a more critical role in realising the government’s ambitions to make Malaysia a regional leader in the digital economy by delivering a superior experience through our enterprise-grade next gen 5G network,” he added.  
 
Wong also said “We are committed to supporting the nation’s digital transformation by driving 5G adoption, supporting Malaysia’s aim of becoming a high-income digital nation.” 

U Mobile won the bid to become Malaysia’s second 5G network provider in November last year, ahead of CelcomDigi and Maxis. This subsequently led to the termination of its single wholesale network model led by Digital Nasional Berhad (DNB), in January this year. 

However, U Mobile’s selection sparked questions about its proposal merits, as it was the smallest of the three telecommunications companies who took part in the 5G tender. 

The operator also reportedly had a large foreign shareholding by Singapore’s Temasek Holdings, which was subsequently reduced to 20% after the investment company sold its majority stake to Mawar Setia.  

In response,the MCMC said that a rigorous selection process was conducted with criteria emphasising on the provider's ability to offer diverse 5G services and enable Malaysians to enjoy high-speed connectivity at an affordable price.   

As the second 5G network provider, U Mobile will be able to collaborate with other ecosystem partners subject to MCMC approval. Similarly, penalties will be imposed on U Mobile should there be non-compliance, said the MCMC.   

Later, U Mobile also released its own statement, assuring that it was ready to spearhead the second 5G network in line with national priorities. It also touted 17 years of innovation, RM5 billion in investments, and its 95% national population coverage.  

Currently, CelcomDigi, Maxis, U Mobile and YTL Communications each hold a 16.3% stake in DNB, while the government holds around 34.9% and a special share. It remains unknown if U Mobile will be divesting its stake in DNB, and how exactly it will implement the new 5G network.  

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