YOU ARE AT:5GU Mobile inks strategic deal for 5G rollout in Malaysia

U Mobile inks strategic deal for 5G rollout in Malaysia

Under the agreement, Edotco will provide U Mobile with access to its tower infrastructures

Malaysian telco U Mobile and compatriot telecommunications infrastructure company Edotco announced a strategic partnership to accelerate the rollout of a 5G network under the government’s dual-network model.

U Mobile noted that the MoU with Edotco affirms the telco’s commitment to the rapid deployment for the second 5G network in the Asian country.

Under the agreement, Edotco will provide U Mobile with information and access to its tower infrastructure, in addition to resource readiness and expedited site delivery to facilitate U Mobile’s 5G network rollout.

The pair will also jointly develop a process to drive efficiency in identifying the right tower locations and structures based on AI and data driven analytics, faster and more efficient site acquisition and permissions by working with various state agencies.

Additionally, the two parties will discuss commercial arrangements for various infrastructure requirements, including built-to-suit sites, co-locations, site upgrades and indoor coverage.

Woon Ooi Yuen, CTO of U Mobile, said: “In line with the Malaysian government’s mandate for dual 5G networks to establish healthy competition in the telecommunications sector, U Mobile is delighted to be able to leverage Edotco’s tower infrastructure footprint to accelerate rollout, further strengthening our position to deploy the second 5G network.”

Last month, U Mobile announced that it has completed the share subscription agreement (SSA) with state-run 5G network Digital Nasional Berhad (DNB) and the country’s Minister of Finance and has signed the shareholders’ agreement for equity stake in DNB.

“U Mobile is delighted to have completed the SSA and signed the SHA with DNB to pave the way for the nation’s transition to a dual 5G network model. We are committed to play a critical role in developing Malaysia’s digital economy, by encouraging 5G adoption and showcasing its benefits to consumers, enterprises and the public sector,” said Wong Heang Tuck, CEO of U Mobile.

Rival operators CelcomDigi, Maxis and YTL had also signed similar agreements with DNB. Telekom Malaysia (TM) is the only carrier that has yet to finalize its SSA with DNB, as it still needs to get approval from shareholders in accordance with its governance requirements.

The SSAs stipulate each operator has the option to quit DNB to participate in the planned second 5G network. Maxis, U Mobile, YTL and CelcomDigi have all issued statements indicating great interest in participating in the second 5G network.

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%.

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.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.