U Mobile and other operators have stakes in DNB, the company in charge of the deployment of the first 5G network in Malaysia
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, the latter said in a release.
“We are excited to collaborate with various stakeholders, including MCMC and other telecommunications companies such as CelcomDigi and Telekom Malaysia to deliver world-class 5G-Advanced services to consumers. U Mobile has been proactively engaging with leading global technology providers including Huawei, with whom we have had a long and enduring partnership.
U Mobile also noted 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. The operator also noted it will reduce its foreign majority shareholding to 20%, with the main aim of “ensuring greater Malaysian control and inviting participation from local investors”.
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.
As of the end of April, DNB’s 5G network had reached 81.5% of the total populated areas and the adoption rate was 39.2%. The country reached a total of 13.2 million 5G subscriptions nationwide as of the end of April.
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. These four Malaysian operators had previously submitted bids to build the country’s second 5G network.
In August, U Mobile signed a Memorandum of Understanding (MoU) with China Mobile International (CMI) with the aim of boosting 5G initiatives in Malaysia.
The agreement stipulates areas of collaboration including knowledge exchange on 5G deployment, innovation and adoption of 5G technology, especially for B2B solutions.
Under the MoU, U Mobile and CMI will also explore and develop a 5G commercial model. Both parties also aim to study ways to enhance roaming infrastructure for seamless 5G cross-border connectivity for travellers.
