[ UPDATE 2/11/2024 11:00 ] U Mobile thanked govt for second 5G network, to reduce foreign shareholding to 20%.
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The Malaysian Communications and Multimedia Commission (MCMC) has announced U Mobile as the winner of Malaysia’s second 5G network bid. This comes after the regulator issued an Application Information Package in July 2024 and four bids were submitted by CelcomDigi, Maxis, U Mobile and TM.
According to the MCMC, in the interest of maximising the true potential of 5G for the benefit of the rakyat, the industry and the nation, it has undertaken a rigorous process encompassing detailed deliberations on technical and commercial aspects, among others to select the mobile network operator (MNO) that will implement Malaysia’s Second 5G Network.
As such, the regulator decided that Malaysia’s second 5G network shall be implemented by U Mobile Sdn Bhd.
It added that U Mobile, subject to the approval of the MCMC, is allowed to collaborate with other telcos in the implementation of the new 5G network. The regulator shall continue to oversee the progress of the implementation of the new 5G network to ensure total compliance with all regulatory requirements as provided for in the Communications and Multimedia Act 1998 (Act 588).
At the moment, Malaysia’s 5G infrastructure is deployed under the Single Wholesale Network model with Digital Nasional Berhad as the sole 5G network in the country. In May 2023, the government announced a policy shift to transition from a Single Wholesale Network (SWN) to a Dual 5G Network model. The decision to have two networks was made to ensure competition for 5G network deployment and establish redundancy for 5G infrastructure.
As part of the prerequisite to transition to the Dual 5G network model, the government required full participation of telcos in DNB. As a result, 5 telcos signed their share subscription agreement to acquire a stake in DNB in December 2023. At the moment, four telcos – CelcomDigi, Maxis, U Mobile and YTL cumulatively own 65% of DNB, while the remaining 35% is retained by the Malaysian government via MoF Inc. with a special share.
With the latest development, U Mobile will have to divest its stake in DNB to focus on building the second 5G network. As mentioned in the Ministerial Direction issued by Communications Minister Fahmi Fadzil on 21st June 2024, the winner of the tender process will allocated 700MHz (2x 20MHz block) and 3.5GHz (100MHz block) spectrum to implement the second 5G network.
