U Mobile is poised to receive the go-ahead to build Malaysia's second 5G network in February 2025, pending the approval of its Detailed Business Plan. The announcement follows U Mobile's selection by the Malaysian Communications and Multimedia Commission (MCMC) in November 2024. However, several conditions must be met before U Mobile can offer 5G services on its network, including fulfilling obligations to Digital Nasional Berhad (DNB), the current sole 5G operator in Malaysia.
U Mobile is expected to receive its award notice to develop Malaysia 's second 5G network in February 2025, pending the approval of its Detailed Business Plan. The telco was selected by the Malaysia n Communications and Multimedia Commission ( MCMC ) in November 2024. However, U Mobile must fulfill several outstanding conditions before offering 5G services on its network.
These obligations include fulfilling requirements with Digital Nasional Berhad (DNB), the current sole 5G network operator in Malaysia. The process of fulfilling these obligations is estimated to take at least five months. While awaiting completion, U Mobile can begin preliminary site works based on the MCMC-approved Detailed Business Plan. Once operational, U Mobile's second 5G network 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 in DNB, while the Ministry of Finance (via MOF Inc) holds the remaining 35% plus a golden share.As U Mobile builds its own 5G network, it will be required to divest its interest in DNB. However, U Mobile can continue offering 5G services through its access agreement with DNB while developing its new network. Questions remain regarding the repayment of U Mobile's obligations to DNB. While U Mobile is expected to build the second 5G network independently, there is speculation about potential new local partners joining in the future. 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. DNB was established as a Single Wholesale Network with a budget of RM16.5 billion to develop and operate the 5G network over 10 years. The government has invested RM500 million as initial equity and a RM450 million shareholder loan into DNB. Gobind highlighted that DNB's 5G rollout was primarily funded through private borrowings, including government-guaranteed loans and other financing sources. As of last November, DNB had spent RM5 billion on 5G network development and implementation, 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 deployed until the Ministry of Finance recoups its investment in DNB
5G U Mobile Malaysia Digital Nasional Berhad MCMC Telecoms Network Deployment
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