U Mobile has recently selected Huawei and ZTE as its key technology partners to build a new 5G network in the country
In sum – what you need to know:
U Mobile exits DNB to build its own 5G network – The telco will sell its stake in state-run Digital Nasional Berhad (DNB) and focus on deploying its own next-gen 5G infrastructure, while still offering 5G services via a wholesale access deal with DNB.
New 5G network to reach 80% coverage in 12 months – U Mobile plans rapid rollout with partners Huawei and ZTE.
Shift follows government green light for dual 5G networks – After DNB achieved 80% population coverage in late 2023, Malaysia approved a second 5G network..
Malaysian telco U Mobile said it will exit from the shareholders’ agreement (SHA) with state-run 5G network Digital Nasional Berhad (DNB), divesting its entire 100,000 shares in the entity, the former said in a release.
The telco said that this move is part of the company’s transition as the country’s newest 5G network provider. U Mobile also reaffirmed its commitment to roll out the nation’s next-gen 5G network, which is expected to reach 80% coverage of populated areas in Malaysia within 12 months.
“U Mobile would like to assure customers that their 5G experience would not be impacted by their SHA exit as the company will continue to maintain a 5G wholesale access agreement with DNB. This enables the company to offer commercial 5G services while deploying its own 5G network, ensuring a seamless 5G experience for its customers,” U Mobile said.
“U Mobile is looking forward to providing enhanced connectivity and innovative services to all Malaysians through its upcoming next-gen 5G network, contributing to a competitive and digitally empowered future for Malaysia,” it added.
U Mobile has recently selected Chinese vendors Huawei and ZTE as its key technology partners to build a new 5G network in the country.
The new network will support advanced features like network slicing and 5G-A capabilities from the beginning. These tools will help businesses tailor their network usage based on specific needs, such as for healthcare, transportation and smart cities, U Mobile said.
U Mobile also plans to improve indoor coverage by increasing the number of indoor 5G sites. Key areas of focus for the rollout include transport hubs, medical centers, sports venues, smart cities and data centers.
The Asian telco noted that Huawei and ZTE were chosen through a competitive tender process launched last year. While suppliers from various regions were invited, only the two Chinese firms submitted proposals, it added.
U Mobile has previously 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.
In November 2024, the Malaysian Communications and Multimedia Commission (MCMC) gave the approval to deploy the second 5G network to U Mobile, the third-largest operator in the country.
At that time, U Mobile said that it will also be working with state-controlled 5G network operator Digital Nasional Berhad (DNB) to ensure the quality of 5G service is maintained.
In May 2023, Malaysian authorities had said that the country would shift to a dual 5G network once DNB achieved 80% coverage in populated areas, something that occurred in December 2023.
The government of Malaysia had also 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.
As of today, all operators in Malaysia are offering 5G service in Malaysia via state-run 5G network Digital Nasional Berhad (DNB).
CelcomDigi, Maxis, YTL and U Mobile currently hold stakes in DNB, each with a 16.3% share.
