U Mobile releases statement amidst concerns around winning 5G network bid

Malaysian mobile operator U Mobile has put up a statement in response to concerns around winning a big to build up Malaysia’s second 5G network. The statement comes after political and media reports questioned why the deal was handed to them, despite being the smallest of three telecommunications companies that took part in the 5G tender. The two other telcos were Maxis and CelcomDigi.

Moreover, half of U Mobile is also foreign owned. Addressing the concerns around this, U Mobile said it is committed to local partnerships and Straits Mobile Investment (wholly owned by ST Telemedia) has agreed to the strategic alignment of its shareholding ownership to 20%, increasing U Mobile’s Malaysian ownership.

“U Mobile is ready to spearhead the second 5G network in line with national priorities by strengthening local engagement and participation in critical telecommunications infrastructure,” it said, adding that while foreign ownership is common in the telco sector, U Mobile’s strategy prioritises Malaysian industry development and strengthening of local ownership.

The statement also saw U Mobile touting its 17 years of innovation and subscriber base reached 9 million customers at the end 2023. With more than RM5 billion invested in its network infrastructure, U Mobile currently has over 10,000 network sites and its national population coverage stands at 95%, on par with its industry peers, supported by a staff strength of over 1,000 Malaysian employees, it said.

It added that U Mobile’s success can be attributed to several factors. As the most recent late entrant and market challenger, U Mobile said it has been an industry champion of affordability by offering products and services that are of similar or better specifications but at a 20 to 25 percent reduction below competitor prices, an approach that the telco still implements today.

“U Mobile is a champion of inclusivity and quality, bridging the digital divide across the country. Key highlights include being the first to offer 5G for all Malaysians at no additional cost, being pioneers of affordable unlimited data plans and innovating on network sharing methods,” it added.

The statement also said that by establishing a second network, Malaysia moves away from a monopolistic model towards a comprehensive competitive landscape. Over the years, competition in the telecommunications industry has always led to improved and cheaper services to consumers. Competition also forces telcos to innovate products and capabilities.

“U Mobile will continue to innovate products and services whilst actively deploying the second 5G network, and would like to assure all stakeholders that it will continue to be well supported with no reliance on government funding,” the telco added.