U Mobile is poised to receive its award notice to construct Malaysia's second 5G network in February 2025, subject to the approval of its Detailed Business Plan. However, U Mobile must fulfill several obligations before launching 5G services on its network. These include meeting commitments to Digital Nasional Berhad (DNB) and repaying its funding contributions. The implementation is contingent upon the Ministry of Finance recouping its investments in DNB.
U Mobile is expected to receive its award notice to build Malaysia 's second 5G network in February 2025, contingent upon the approval of its Detailed Business Plan. This follows the Malaysia n Communications and Multimedia Commission (MCMC)'s announcement in November 2024 selecting U Mobile for the project. However, U Mobile must fulfill several outstanding conditions before offering 5G services on its network.
These obligations include meeting commitments to Digital Nasional Berhad (DNB) prior to commencing commercial 5G services on the second network. Fahmi, the Communications and Digital Minister, stated that fulfilling these obligations could take approximately five months. During this period, U Mobile can initiate preliminary site works based on the Detailed Business Plan approved by the MCMC. With U Mobile constructing the second 5G network, it will compete with DNB, which currently has CelcomDigi, Maxis, and YTL Communications as shareholders. The four telcos (CelcomDigi, Maxis, U Mobile, and YTL) collectively hold a 65% stake, while the Ministry of Finance (via MOF Inc) owns the remaining 35% plus a golden share. U Mobile will be required to divest its interest in DNB as it focuses on building its own 5G network. While constructing the new network, U Mobile can continue offering 5G services through its access agreement with DNB. However, questions remain regarding the repayment of its obligations to DNB.It's uncertain if other telcos will join U Mobile in building the second 5G network, though reports suggest U Mobile will proceed independently without new local partners. The implementation of the second 5G network is contingent upon the Ministry of Finance recovering its investment in DNB as part of the transition to a Dual 5G network model. Digital Nasional Berhad was established as a Single Wholesale Network with a budget of RM16.5 billion to develop and operate the 5G network over a ten-year period. The Malaysian government has invested RM500 million for initial equity and a shareholder loan of RM450 million into DNB. Gobind revealed that DNB's 5G rollout was primarily funded through private borrowings which include government-guaranteed loans and other financing sources. As of November last year, DNB had spent RM5 billion on developing and implementing the 5G network, achieving over 82% 5G population coverage. The Digital Minister emphasized that the government's total funding of RM950 million and government-guaranteed bank loans will be assumed and repaid by the telcos during the transition process. He stressed that the second 5G network will not be implemented until the Ministry of Finance's funding in DNB is returned
5G Malaysia U Mobile Digital Nasional Berhad DNB Ministry Of Finance Telecom Network Deployment
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