U Mobile aims to achieve 80% 5G coverage across populated areas in Malaysia by July 2026
In sum – what you need to know:
U Mobile secures major 5G funding – CIMB Bank will lead a RM4B financing facility, committing RM1.5B directly, to support U Mobile’s accelerated 5G network deployment.
80% coverage target by 2026 – The capital injection will help U Mobile reach 80% 5G coverage across populated areas in Malaysia by July 2026.
Financing Ties Deepen – The new deal builds on a steady financing track record, with CIMB supporting U Mobile since 2021 through progressively larger loan arrangements.
Malaysian carrier U Mobile has appointed CIMB Bank as its mandated lead arranger and loan coordinator for a financing facility of up to RM4 billion ($940 million) to accelerate the nationwide deployment of its 5G network.
As part of the financing plan, CIMB has committed to participate in at least RM1.5 billion of the facility, with the remainder to be syndicated among other local financial institutions. The capital will support U Mobile’s capital expenditure as it aims to achieve 80% 5G coverage across populated areas in Malaysia by July 2026.
This financing deal builds on a memorandum of understanding signed between U Mobile and CIMB in January 2025, which outlined efforts to explore funding solutions for the telco’s 5G rollout.
The collaboration further strengthens a longstanding financing relationship between the two companies. CIMB previously participated in a RM1.2 billion facility for U Mobile in 2021, which was later increased to RM1.4 billion in 2023.
Wong Heang Tuck, chairman of U Mobile, said: “Partnering with a strong financial institution like CIMB demonstrates our ability in executing our capex program efficiently. Their confidence in our financial discipline and growth trajectory reinforces our ability to deliver an enterprise-grade 5G network that is fast, scalable, and impactful for both businesses and consumers.”
The telco recently selected compatriot operator Telekom Malaysia (TM) as its fiber backhaul partner to accelerate the deployment of its 5G network nationwide.
Under this partnership, TM will provide U Mobile a comprehensive suite of backhaul infrastructure services, including fiber leased line access to U Mobile’s 5G radio access network (RAN), data center and TM edge facility leasing for points of interconnect (POIs), as well as trunk leased line for inter-regional connectivity.
U Mobile recently 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 telco said that this move is part of its transition as the country’s newest 5G network provider. U Mobile assured its 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.
The Malaysian carrier 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.
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.
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 DNB.
