Govt picks U Mobile to implement Malaysia’s second 5G network

• MCMC said it ran rigorous technical and commercial processes on all bids
• With MCMC nod, U Mobile can collaborate with other MNOs in implementation

[Ed: Article updated on 1 Nov, 2pm with comments from U Mobile.]

The Malaysian Communications and Multimedia Commission (MCMC) has announced U Mobile Sdn Bhd as the winning party to implement Malaysia’s second 5G network.

MCMC said it has rigorously undertaken processes encompassing detailed deliberations on technical and commercial aspects, before settling on UMobile as the mobile network operator (MNO) to implement the second 5G Network after Digital Nasional Bhd.

U Mobile, subject to the approval of MCMC, is allowed to collaborate with other MNOs in the implementation of Malaysia’s Second 5G Network.

This leaves the door open for Maxis Bhd to possibly acquire UMobile as some media have reported in Sept. U Mobile reported 9 million subscribers at the end of 2023. Maxis reported 12.75 million subscribers at the end of Q2 2024.

In a subsequent media statement, U Mobile expressed its thanks and said it will collaborate with various stakeholders, including MCMC and other telecos such as CelcomDigi Sdn Bhd and Telekom Malaysia Bhd (there was no mention of Maxis Bhd) to deliver world-class 5G- Advanced services. "U Mobile has been proactively engaging with leading global technology providers including Huawei, with whom we have had a long and enduring partnership and will also be working with Digital Nasional Bhd to ensure consumers continue to enjoy the best 5G experience," it said.

It also announced its intention to reduce its foreign majority shareholding to 20%, ensuring greater Malaysian control and inviting participation from local investors. Current shareholders include Singapore-based Straits Mobile Investments Pte Ltd with a 48.3% stake. Malaysian investors are, the current king of the country, Sultan Ibrahim Almarhum Sultan Iskandar with 22.3%; Magnum Bhd with 7.8%; Singer (Malaysia) Sdn Bhd with 6.1% and U Telemedia Sdn Bhd, owned by Malaysian tycoon Vincent Tan, at 5.6%. 

MCMC said will continue to oversee the progress of the implementation of Malaysia’s Second 5G Network to ensure total compliance with all regulatory requirements as provided for in the Communications and Multimedia Act 1998 (Act 588).