KUALA LUMPUR (Feb 6): U Mobile Sdn Bhd must first fulfill certain obligations under the shareholder agreement signed with Digital Nasional Bhd (DNB) before it can deploy Malaysia’s second 5G network.

The process is expected to take at least five months, Communications Minister Fahmi Fadzil said without elaborating on the obligations. However, U Mobile may proceed with preliminary groundwork based on the detailed business plan to be approved by the Malaysian Communications and Multimedia Commission (MCMC), he noted.

“The ministry, through the MCMC, is currently evaluating the detailed business plan submitted by U Mobile,” Fahmi said in a written parliamentary reply to Chong Zhemin (Pakatan Harapan-Kampar).

U Mobile, controlled by tycoon Tan Sri Vincent Tan Chee Yioun, was selected in November 2024 over its larger competitors to deploy Malaysia’s second 5G network. Tan said in January that U Mobile aims to deploy the second 5G network within 15 to 18 months.  

Fahmi was responding to Chong’s inquiry on the time frame given to U Mobile to launch the second 5G network, and when consumers could expect to benefit from it.

The official letter of award is expected to be issued to U Mobile in February 2025, allowing the company to proceed with the second 5G network roll-out, subject to the approval of the detailed business plan, Fahmi added.

U Mobile also holds a 16.3% stake in DNB under share subscription agreements between mobile network operators and the government. DNB was set up by the government to roll out Malaysia's first 5G infrastructure across populated and rural areas to be leased out to mobile network operators.

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