U Mobile will collaborate with other telecom operators to share network infrastructure for the future 5G deployment
Malaysian telecommunications operator U Mobile is reportedly 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, according to local news site The Edge Malaysia.
The report noted that the company is expected to collaborate with other operators to facilitate this rollout.
Although U Mobile has yet to officially announce its 5G deployment strategy, the report, which referenced insights from RHB Research, suggests that the operator plans to enhance existing 4G infrastructure and deploy new 5G sites to implement Malaysia’s second 5G network.
RHB Research also anticipates that U Mobile will collaborate with other telecom operators to share network infrastructure, which could expedite site deployment and reduce capital expenditure by approximately RM3 billion ($665.3 million) to RM4 billion.
Before receiving approval from the Malaysian Communications and Multimedia Commission (MCMC) last November to operate as the country’s second 5G provider, U Mobile had entered into an agreement with rival telco CelcomDigi in February 2024. This partnership included sharing 100 multi-operator core network sites and jointly developing 5G-Advanced (5G-A) use cases. In July 2024, U Mobile also inked a strategic 5G backhaul partnership with Time dotCom.
During the same month, U Mobile partnered with eight state-backed network facility providers within the PPIT Consortium to streamline its 5G rollout, according to the report.
The report also highlighted that RHB Research considers that U Mobile is likely to fund the 5G deployment through a combination of vendor financing, deferred payment arrangements and debt funding. In July 2024, U Mobile had signed a Memorandum of Understanding (MoU) with AmBank Group to secure financing solutions for the rollout of its 5G network.
The government of Malaysia has recently revoked a previous ministerial direction of 2021, which had designated Digital Nasional Berhad (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.
As of today, all operators in Malaysia are offering 5G service via the state-run 5G network Digital Nasional Berhad.
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 May 2023, Malaysian authorities 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.
Although U Mobile was selected as the lead implementer for the second 5G network over two months ago, the MCMC has yet to finalize the spectrum assignment, rollout targets or operational conditions for this network.
