U Mobile has issued a press release, announcing its readiness to lead Malaysia’s second 5G network rollout, positioning itself as the optimal choice to deliver the new infrastructure. In a recent press release, the telco highlighted its commitment to national priorities, focusing on increased Malaysian ownership and local participation in critical telecommunications projects.
Building on a previous announcement, U Mobile announced that Straits Mobile Investment Pte Ltd, a wholly owned subsidiary of ST Telemedia, will reduce its shareholding to 20%. This adjustment aligns with U Mobile’s goal of bolstering local partnerships and strengthening the Malaysian telecommunications industry. The company underscored that while foreign ownership is common in the sector, its focus remains on supporting national interests through enhanced local engagement.
U Mobile’s confidence in its 5G rollout capability stems from a solid track record spanning 17 years. The telco says it currently serves 9 million customers and operates over 10,000 network sites, providing coverage to 95% of the population. It emphasised that its extensive experience and infrastructure would ensure a rapid and cost-effective deployment of the second 5G network.
The introduction of a second 5G network is seen by U Mobile as a step towards fostering a competitive telecom landscape. The telco noted that competition historically drives innovation and lowers costs, ultimately benefiting consumers. U Mobile positions itself as a leader in affordability, offering services that are 20-25% cheaper than those of its competitors while maintaining similar or superior quality.
U Mobile highlights that it has pioneered unlimited data plans and innovative network-sharing solutions, in addition to being the first telco to provide 5G services at no extra cost. It added that these initiatives have made advanced mobile services more accessible and affordable for Malaysians, reinforcing the company’s reputation as an industry disruptor.
The telco plans to fund the 5G rollout entirely through private investments, with support from shareholders and financial institutions such as UOB, CIMB, and AmBank. U Mobile highlighted its financial stability, noting positive EBITDA since 2017 and a strong operating cash flow. This financial backing, along with strategic partnerships, ensures that the rollout will not require public funds.
Prior to the telco’s statement, its major shareholder and chairman Tan Sri Vincent Tan also defended U Mobile’s selection for the second 5G network. Speaking to Business Today, he dismissed claims of preferential treatment and criticised the current 5G monopoly under Digital Nasional Berhad (DNB), introduced during the Muhyiddin administration. Tan argued that DNB’s approach risks taxpayer money and underscored the need for competition to improve service quality and affordability for consumers, businesses, and government entities.
(Source: U Mobile press release / Business Today)
