U Mobile has officially received the Letter of Award from the Malaysian Communications and Multimedia Commission (MCMC) to implement the country’s second 5G network. This development marks a significant milestone in Malaysia’s transition to a Dual 5G Network model, providing an alternative to the existing 5G infrastructure managed by Digital Nasional Berhad (DNB).
The announcement follows the government’s decision to move away from the Single Wholesale Network model. On 1st November 2024, U Mobile was selected as the second 5G network provider, a decision that initially raised questions regarding the selection process, as major players like Maxis and CelcomDigi were widely expected to be frontrunners.
U Mobile has expressed its commitment to rolling out a state-of-the-art 5G network, backed by its experience in the telecommunications sector spanning over 17 years. The telco has also stated that the implementation of the Dual 5G Network model will enhance competition, drive innovation, and support the sustainability of the industry. U Mobile had previously conducted limited tests on standalone 5G (5G SA) technology in selected areas, demonstrating its readiness to embark on this large-scale deployment.
Despite the issuance of the award letter, several aspects of the transition remain unclear. U Mobile is currently both a shareholder and an access seeker of DNB, and it is required to divest its interest in DNB before proceeding with its own 5G deployment. Additionally, MCMC and the government have yet to disclose specific deployment targets and timelines for the second 5G network.
A key aspect of this transition is the financial implications for DNB. Digital Minister Gobind Singh previously stated that the government must be reimbursed for its investments in DNB as part of the shift to a Dual 5G Network structure. This raises questions about how the financial restructuring of DNB will be managed and whether other telcos will be granted access to U Mobile’s 5G infrastructure in the future.
(Source: U Mobile press release)
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