U Mobile received approval from the Malaysian Communications and Multimedia Commission last November to operate as the country’s second 5G provider
Malaysian operator U Mobile has signed a Memorandum of Understanding (MoU) with local bank CIMB Bank Berhad (CIMB) with the aim of extending financing support for its upcoming 5G network rollout.
“U Mobile is delighted with the strategic partnership with CIMB for our 5G network rollout. CIMB is our long-standing financing partner and shares our commitment to drive innovation and growth within the country’s economy via 5G, in line with government’s goal of achieving high income nation status with focus on digitalization. We believe CIMB’s financial backing will further strengthen U Mobile’s ability to ensure a rapid and cost efficient second 5G network rollout that will bring benefits to enterprises, consumers and the public sector,” said U Mobile’s CEO, Wong Heang Tuck.
Chu Kok Wei, CEO of Group Wholesale Banking, CIMB Group said: “In line with our shared goal of nation building, CIMB is pleased to support U Mobile in its efforts to connect Malaysians and spur digital innovation through the power of 5G.”
U Mobile received approval from the Malaysian Communications and Multimedia Commission (MCMC) last November to operate as the country’s second 5G provider.
In May 2023, Malaysian authorities said that the country would shift to a dual 5G network once state-run 5G network Digital Nasional Berhad (DNB) achieved 80% coverage in populated areas, something that occurred in December 2023.
The government of Malaysia has recently revoked a previous ministerial direction of 2021, which had designated DNB as the sole entity responsible for Malaysia’s 5G deployment.
DNB was set up by the Malaysian government in 2021 as a special purpose vehicle to develop the country’s 5G network infrastructure, which private telecommunications firms are currently using to offer 5G services to their customers. DNB’s 5G network was deployed by Ericsson.
Under the ministerial direction, DNB was to operate as a neutral, Ministry of Finance-owned entity tasked with deploying 5G infrastructure and offering wholesale services nationwide. However, the revocation of this directive signals the government’s intent to transition to a dual-network model.
A recent report suggested that U Mobile is getting ready to deploy between 5,000 and 7,000 5G sites nationwide as the telco assumes the role of Malaysia’s second 5G operator. The report noted that the company is expected to collaborate with other operators to facilitate this rollout.
Although U Mobile has yet to officially announce its 5G deployment strategy, the report, suggests that the operator plans to enhance existing 4G infrastructure and deploy new 5G sites to implement Malaysia’s second 5G network.
