KUALA LUMPUR (May 26): U Mobile Sdn Bhd has signed a RM2.4 billion, 10-year deal with Telekom Malaysia Bhd (KL:TM) to speed up its nationwide 5G rollout.
Under the agreement, TM will provide fibre infrastructure services, including leased lines, data-centre access, and network connectivity, to support U Mobile’s 5G network.
Using TM’s 740,000km fibre network, the widest in Malaysia, U Mobile aims to reach 80% population coverage by July 2026. The deal was formalised at a ceremony officiated by Communications Minister Datuk Fahmi Fadzil.
“Together with TM and other partners, we are committed to reaching 80% coverage of populated areas within 12 months, while ensuring a superior 5G experience that is highly reliable, supports massive capacity, and delivers ultra-fast speeds to benefit enterprises and consumers across Malaysia,” said U Mobile chief executive officer Wong Heang Tuck.
TM group CEO Amar Huzaimi Md Deris said the partnership supports Malaysia’s digital goals and TM’s aim to become a “digital powerhouse” by 2030.
He added that it shows TM’s commitment to building strong, inclusive infrastructure that boosts innovation, connectivity, and digital growth nationwide.
Fahmi said 5G prices will stay competitive, as Malaysia shifts to a dual-network model with Digital Nasional Bhd (DNB) and U Mobile.
He believes U Mobile’s partnership with TM will help control costs by using TM’s large fibre network, which will benefit consumers.
Fahmi also encouraged U Mobile to share networks with DNB to maximise efficiency, and said government pricing rules (MSAP) will help keep 5G affordable.
“We apply MSAP to Telekom Malaysia, and it’s one of the tools that enables the Malaysian Communications and Multimedia Commission (MCMC) to ensure pricing remains reasonable,” said Fahmi. “The last MSAP review was done last year, and this will continue to be updated every two or three years.”
On Nov 1, 2024, the MCMC named U Mobile — linked to tycoon Tan Sri Vincent Tan Chee Yioun — as the provider of Malaysia’s second 5G network.
The decision was based on a detailed review of technical and commercial factors, though specifics were not shared. The choice surprised many, as U Mobile is smaller than rivals CelcomDigi (KL:CDB) and Maxis (KL:MAXIS) in both subscribers and financial strength.
DNB planned to spend RM16.5 billion over 10 years on 5G, funded by private loans without government support. But the shift to a dual network has raised concerns about DNB’s future role and ability to repay its debts.