Malaysia’s digital landscape is witnessing a transformation as U Mobile, the third-largest operator in the country, received the green light from the Malaysian Communications and Multimedia Commission (MCMC) to roll out the nation’s second 5G network. This initiative marks a significant development following extensive collaborations, including strong partnerships with key players such as Huawei, to provide advanced 5G services.
U Mobile has announced its commitment to maintaining high service quality in cooperation with Digital Nasional Berhad (DNB), a state-controlled entity. The company plans to encourage greater local investment by reducing its foreign majority shareholding to 20%. This approach appears to underline its strategic intention of aligning with national interests.
This shift aligns with a government decision in May 2023 to transition Malaysia to a dual 5G network model once DNB achieved 80% coverage in populated areas. This target was surpassed by December 2023, with 5G subscription numbers reaching 13.2 million by April and an 81.5% coverage nationwide. Ericsson was instrumental in deploying DNB’s 5G infrastructure, which all Malaysian operators currently utilize.
Ownership in DNB is split among several operators, with U Mobile, CelcomDigi, Maxis, and YTL each holding a 16.3% stake. These companies, alongside U Mobile, had previously submitted bids to construct Malaysia’s second 5G network. U Mobile further strengthened its 5G pursuits by signing a Memorandum of Understanding (MoU) with China Mobile International (CMI) in August.
This agreement aims to bolster knowledge exchange and foster innovation, with a focus on B2B solutions and a comprehensive study on 5G commercial models. The partnership seeks to improve the roaming infrastructure, creating seamless 5G connectivity for international travelers.
