U Mobile declines DNB's share offer, to proceed with 5G rollout

• Decided not to pursue investment options in DNB
• Does not affect ability to provide 5G to customers 

U Mobile has decided not to pursue the investment option in DNB after having extensive discussions and deliberations on the matter and after taking into consideration the terms of the investment.

In a statement, the telco said it is supportive of the government’s vision of a single wholesale network (SWN) model for 5G deployment in Malaysia and is grateful to have been invited to invest in Digital Nasional Berhad (DNB). 

But the firm said  it would "better serve Malaysians by focusing on its strengths of providing innovative and unbeatable connectivity and digital services that would realise the full potential of 5G technology."

The Malaysian government is deploying 5G using a SWN model, which is managed by DNB. Of the six telcos in the country, only YTL Communication has deployed a commercial 5G network to date.

Telekom Malaysia has agreed to use the 5G infrastructure set up by DNB but the four incumbents, Celcom Axiata Bhd, Digi.com Bhd, Maxis Bhd, and U Mobile – collectively known as CDMU in the industry – has delayed doing so.

The Malaysian government had in March offered a 70% stake in DNB to all six telcos to take up a take in DNB, with U Mobile now saying that it has declined the offer. Meanwhile, Maxis has also reportedly declined the offer, reported Reuters.

According to the U Mobile, its decision not to invest in DNB does not affect its ability to provide 5G services to customers as access to DNB’s 5G network infrastructure is governed by a separate access agreement, which is not linked to the equity investment in DNB. 

The firm said that along with the other telcos, it is in discussion to finalise the 5G access agreement with DNB. 

Once this is finalised and signed, DNB’s 5G access when combined with U Mobile’s existing 4G network will enable U Mobile customers to enjoy a truly seamless connectivity experience, it added.

U Mobile said it has full faith that DNB's deployment of quality 5G network infrastructure will be on schedule and that it will carry out the government’s mandate to provide wholesale 5G coverage and capacity on an equitable and non-discriminatory basis via the 5G access agreement.

The telco added that it has been testing 5G services and is looking forward to its customers enjoying the full benefits of 5G with its 5G-ready products and services soon.