U Mobile Sdn Bhd has officially received a letter of award from the Malaysian Communications and Multimedia Commission (MCMC) to spearhead the rollout of Malaysia's next-generation 5G network. The announcement marks a significant milestone for the telco, as it gears up to support the country's digital ambitions.

U Mobile's Vision: Powering Malaysia's Digital Future Expressing gratitude for the trust placed in them, U Mobile CEO Wong Heang Tuck said the company is honored by the government's confidence in its ability to lead the 5G rollout.

"We're committed to delivering a world-class, enterprise-grade 5G network. This mandate allows us to contribute meaningfully to Malaysia's goal of becoming a regional digital economy leader," he said.

Wong added that U Mobile aims to drive 5G adoption nationwide and support the broader mission of transforming Malaysia into a high-income, tech-forward nation.

Supporting the Government's Dual 5G Network Strategy

U Mobile also threw its support behind the government's dual network strategy, stating that the approach would boost industry competitiveness, encourage innovation, and ensure long-term sustainability in the telecom sector.

With more than 17 years of operational experience, the company expressed confidence in its ability to deploy an advanced 5G and 5G-Advanced network, accessible to all Malaysians.

A Surprising Contender

MCMC first named U Mobile as the implementer of the second 5G network on November 1, 2024, following what it described as a rigorous technical and commercial evaluation process.

The announcement surprised many, as U Mobile is notably smaller in terms of subscriber base and financial resources compared to giants like CelcomDigi Bhd and Maxis Bhd. Nonetheless, U Mobile stated it plans to collaborate with MCMC and other telcos—including CelcomDigi and Telekom Malaysia Bhd—pending regulatory approval.

Questions Around Ownership and Transparency

The appointment sparked questions from politicians, industry players, and other stakeholders about the selection process, investment transparency, and foreign shareholding in U Mobile.

Of particular concern was the reported 71% stake held by Singapore's Temasek Holdings through its subsidiary, Singapore Technologies Telemedia Pte Ltd. In response, the MCMC clarified that U Mobile's selection was based on its technical readiness, service track record, and customer satisfaction performance.

To address concerns, Temasek announced it would reduce its stake in U Mobile to 20%, selling the majority to Mawar Setia Sdn Bhd, a company owned by Tan Sri Vincent Tan and Tunku Tun Aminah Sultan Ibrahim, daughter of Malaysia's current King, Sultan Ibrahim.

The Bigger Picture: Transition from DNB to Dual Network

This development comes in the wake of ongoing industry lobbying for an alternative to Digital Nasional Bhd (DNB), the government-linked company initially tasked as the sole provider of 5G infrastructure.

The unity government eventually approved a dual network model, once DNB had achieved 80% 5G population coverage. Currently, U Mobile, CelcomDigi, Maxis, and YTL Communications each hold a 16.3% stake in DNB, with the government holding 34.9% through MOF Inc, along with a special share.

DNB had originally projected RM16.5 billion in private loan-based funding for 5G development, stating it wouldn't need public funds. However, the shift to a dual network prompted fresh concerns about DNB's long-term financial health, especially given its loan obligations.

Government Support and Future of DNB

Digital Minister Gobind Singh Deo revealed last month that DNB has been restructured, though details remain scarce. He confirmed that:

Looking Ahead As U Mobile prepares to roll out the second 5G network, all eyes will be on how it balances technical execution, market competition, and stakeholder collaboration. The dual network model represents a new chapter for Malaysia's digital infrastructure—and one that will undoubtedly shape the nation's tech future in the years to come.