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MCMC selects U Mobile as second 5G network provider in Malaysia

by Teddy Cambosa

-

November 7, 2024

MCMC selects U Mobile as second 5G network provider in Malaysia

Kuala Lumpur, Malaysia – The Malaysian Communications and Multimedia Commission (MCMC) has selected U Mobile as Malaysia’s second 5G network. The selection based on the evaluation criteria emphasising the provider’s ability to offer diverse and affordable 5G services enabling Malaysians to enjoy high-speed connectivity at an affordable price.

MCMC stated that the choice made is based on a combination of factors, including the submitted business and technical plan, complaint rates and customer satisfaction track records, and their performance in delivering other infrastructure initiatives. 

This includes significant contributions to the Universal Service Provision (USP) projects such as JENDELA Phase 1 and 4G Upgrading projects, which align with MCMC’s commitment to enhancing user experience and service excellence.

Through this selection, regulatory responsibilities for U Mobile can be enforced in accordance with established compliance requirements. In cases of non-compliance, penalties will be imposed. As the second 5G network provider, U Mobile is permitted to collaborate with other ecosystem partners, subject to MCMC approval. 

MCMC will continuously monitor and assess these partnerships to ensure their benefits are enjoyed by all Malaysians. 

It is worth noting that MCMC is aware of U Mobile’s current foreign shareholding, and is the license holder’s responsibility to inform MCMC of any changes in the company’s foreign ownership.

“With the establishment of a second 5G network, MCMC is paving the way for greater service flexibility and inclusivity. This development encourages competition and strengthens industry resilience, enabling Malaysians to enjoy high-speed connectivity at an affordable price. MCMC will continue to monitor quality standards among all service providers to ensure a robust and reliable telecommunications landscape for the nation’s future,” the commission said in a press statement.

In response to this, U Mobile had expressed theirheartfelt gratitude to the Malaysian government for selecting them to implement the nation’s second 5G network.

“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 will also be working with DNB to ensure consumers continue to enjoy the best 5G experience,” the telco stated.

U Mobile also highlighted that in alignment with their commitment to the national agenda, U Mobile will reduce its foreign majority shareholding to 20%, ensuring greater Malaysian control and inviting participation from local investors.

Meanwhile, other giant Malaysian telcos–Maxis, Telekom Malaysia, and CelcomDigi–all have released separate statements related to the government’s decisions. Nonetheless, the three telcos have stipulated in their statements that their 5G offerings to customers remain unaffected and that they remain committed to serve their customers and continue working with the national government in improving national connectivity.

For context, the second 5G network refers to an additional 5G infrastructure that complements the existing Single Wholesale Network (SWN) model provided by Digital Nasional Berhad (DNB). This dual network (DN) approach introduces more competition in the telecommunications landscape, driving innovation and enhancing service quality. 

With the second 5G network, Malaysia can diversify service options, ensuring that consumers have access to more competitive prices and improved coverage. This step is crucial for bridging the digital divide and boosting economic growth through better digital infrastructure and wider reach, especially in underserved rural areas.

Related Tags Telco 5G U Mobile Malaysian Communications and Multimedia Commission
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