KUALA LUMPUR (Nov 12): U Mobile Sdn Bhd must achieve 80% 5G coverage in populated areas within the first year of operation and 95% by the third year under the company's detailed business plan (DBP) for leading Malaysia’s second 5G network, said Communications Minister Datuk Fahmi Fadzil.

The DBP also states that U Mobile will implement a standalone 5G network from the outset, develop in-building solutions (IBS) within four years to strengthen indoor coverage, provide fiber optic connectivity and support Enterprise 5G applications to accelerate digital adoption among businesses, said Fahmi in a written parliamentary reply on Wednesday.

According to him, U Mobile plans to upgrade 6,515 sites to 5G coverage in its first year of operation, beginning July 14, 2025. As of Oct 31, 2,976 sites had been upgraded, providing 58.2% 5G coverage in populated areas, while 11 buildings have been equipped with 5G infrastructure.

“These sites will become operational in stages under the company’s rollout schedule,” Fahmi said.

The minister was replying to Datuk Yusuf Abd Wahab (GPS-Tanjong Manis), who had asked about the latest developments on the nationwide 5G network following U Mobile’s appointment, and the current status of the company’s major shareholders.

Fahmi said the dual 5G network approach is expected to foster greater competition in the telecommunications sector, spurring innovation and improving service quality. The entry of a second network operated by U Mobile would allow Malaysia to diversify service options, ensuring consumers benefit from more competitive prices and better coverage, particularly in underserved rural areas, he added.

He also noted that under the Jendela initiative, the government and the Malaysian Communications and Multimedia Commission (MCMC) will continue to closely monitor the 5G rollout to ensure transparency, accountability, and adherence to national targets.

The MCMC had announced in November last year U Mobile’s selection to lead the second 5G network. The announcement came as a surprise, as U Mobile is relatively smaller than its competitors — CelcomDigi Bhd(KL:CDB) and Maxis Bhd(KL:MAXIS) — in terms of subscriber base and financial strength.

Confusion deepened when Temasek Holdings Pte Ltd’s wholly-owned subsidiary Singapore Technologies Telemedia Pte Ltd (ST Telemedia) announced in December that it was selling “a majority stake” — typically meaning more than 50% equity interest — in U Mobile.

The buyer of the stake was Mawar Setia Sdn Bhd, a company 70%-owned by tycoon Tan Sri Vincent Tan and 30% by Johor princess Tunku Tun Aminah Sultan Ibrahim.

According to Companies Commission of Malaysia (SSM) data as of December last year, the Yang di-Pertuan Agong Sultan Ibrahim is U Mobile’s second-largest shareholder with a 22.3% stake. Other shareholders include Magnum Bhd (7.83%), Singer (Malaysia) Sdn Bhd (6.09%), U Telemedia Sdn Bhd (5.59%), and Tan Sri Koon Poh Keong (2.35%). Both Singer and U Telemedia are Vincent Tan’s investment vehicles.

In his parliamentary reply, however, Fahmi did not elaborate on U Mobile’s current shareholding structure.

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