KUALA LUMPUR (Nov 9): Eighteen months following its decision to abandon the single wholesale network (SWN) structure and transition to a dual 5G network, Malaysia sprang yet another surprise by selecting U Mobile Sdn Bhd, the third and smallest of the three bidders that qualified, for the coveted second 5G spectrum bid on Nov 1.
The decision announced late last Friday evening, which snubbed larger rivals Maxis Bhd (KL:MAXIS) and CelcomDigi Bhd (KL:CDB) — the country’s two largest mobile network operators (MNOs) that openly resisted the SWN and were seen as lead lobbyers for a second 5G network in Malaysia — sparked spirited conversations over the reasons backing the selection, casting the spotlight on U Mobile’s top three shareholders, including the King, Sultan Ibrahim Sultan Iskandar, who acquired a 10% minority stake in 2014 but now has 22.3%.
Now that the entity leading Malaysia’s second 5G network has been named, the SWN structure under government-led Digital Nasional Bhd (DNB) is officially no more.
“DNB is unable to comment on issues that fall under the jurisdiction of regulators or the government, or on matters bound by confidentiality agreements. Currently, DNB is awaiting further details from the Malaysian Communications and Multimedia Commission (MCMC) and other stakeholders regarding the transition plan. We look forward to collaborating with our stakeholders as we progress into the next phase of our development,” a DNB spokesperson replied to questions from The Edge.
The terms surrounding the award of the second 5G network licence remain uncertain. Without clarity, what do industry insiders and observers have to say about the matter?
Is it clear which MNO will choose to partner U Mobile for the second 5G network? Has U Mobile's foreign shareholder, Singapore Technologies Telemedia Pte Ltd, been given a deadline to reduce its equity holding to 20%?
To read what decisions lie ahead for the telecommunications industry, the players involved and why it matters, pick up a copy of the Nov 11, 2024 issue of The Edge Malaysia weekly available at the newsstands.
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