KUALA LUMPUR (Nov 8): Communications Minister Fahmi Fadzil said on Friday it is too early to reveal the specific conditions that will be imposed on U Mobile Sdn Bhd to lead the second 5G network.
While the conditions have yet to be determined, Fahmi said they will likely mirror measures imposed on the first 5G network as well as the merger of Celcom Axiata Bhd and Digi.Com Bhd — now known as CelcomDigi Bhd (KL:CDB).
"For the second network, there will undoubtedly be specific conditions that will be set,” Fahmi told a weekly press conference on Friday. “But as for what those conditions are, we need to go through the process first.”
The Malaysian Communications and Multimedia Commission (MCMC) will call upon U Mobile to “understand the current discussions between U Mobile and any company interested in collaborating with U Mobile”, he said.
Fahmi reiterated that U Mobile has met the necessary requirements to be awarded the tender to lead the country's second 5G network, emphasising that the decision was made independently by the MCMC.
The award does not constitute a contract or licence, but involves the allocation of the 3.6 gigahertz (GHz) spectrum, which will be used to develop the new 5G network, he said.
“So there will be no public funds involved in developing the second 5G network. And in terms of management and governance, so far everything is in order. There is no intervention [by the ministry],” he said.
The minister was responding to questions from the media regarding U Mobile's eligibility to be appointed to lead the development of the second 5G network, and confirmed that only three companies — CelcomDigi, Maxis Bhd (KL:MAXIS), and U Mobile — were qualified to submit proposals.
The selection criteria included a thorough evaluation of business plans, technical proposals, and the companies’ past performance in fulfilling MCMC projects, Fahmi said.
“Ultimately, MCMC has decided to go with U Mobile. I comply with MCMC’s decision,” he added.
Last Friday (Nov 1), the MCMC announced that U Mobile had been selected to lead the second 5G network, although details of its structure, financing and rollout plans remain vague.
MCMC’s late-evening statement came as a surprise, as U Mobile is relatively smaller than its bidding competitors, namely CelcomDigi and Maxis, in terms of its subscriber base and financial strength.
U Mobile, in receiving the award, said it will collaborate with various stakeholders, including the MCMC and other telecommunications companies such as CelcomDigi and Telekom Malaysia Bhd (KL:TM) to deliver 5G advanced services to consumers.
Following the announcement, many quarters, including government backbenchers, opposition politicians, and industry players, have demanded that the authorities provide greater clarity on the merits of U Mobile’s proposals, as well as clear investment guidelines for telecommunications companies to consider ahead of partnering with U Mobile.
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