U Mobile aims to deploy its 5G network with equipment from Chinese vendors Huawei and ZTE
Malaysian operator U Mobile aims to deploy the country’s second 5G network without requiring government funding or involving new local partners, local news site The Edge Malaysia reported, citing the telco’s chairman, Tan Sri Vincent Tan Chee Yioun.
The executive also noted that U Mobile is aiming to roll out the new 5G network within the next 15 to 18 months.
During a media briefing, Tan dismissed analysts’ concerns about the company’s capacity to independently establish the second 5G network. “Let’s revisit this in 15 to 18 months and reassess what ‘struggle’ means. We were offered more loans than we even needed,” the executive said.
Tan ruled out partnering with local entities and emphasized the company’s interest in working with Chinese vendors, specifically Huawei Technologies and ZTE. “We don’t require new local partners. We are considering Huawei and ZTE as potential suppliers (…) They will provide the 5G equipment and offer financing. While we’ll need to invest in our own capital expenditure and secure financing from banks, nothing has been finalized yet,” Tan added.
U Mobile has recently 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 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.
