U Mobile’s Ambitious Timeline for 5G Rollout in Malaysia
U Mobile, a key telecommunications player in Malaysia, has announced its plans to roll out a nationwide 5G network by mid-2026. The company intends to launch the second 5G network in the country, competing against the current state-backed Digital Nasional Bhd (DNB) network. U Mobile is confident in its ability to achieve this independently, without additional backing from the government or new local partners.
Chairman Tan Sri Vincent Tan Chee Yioun revealed to the media last week that U Mobile has already identified its strategy and key suppliers for the 5G rollout, signaling a strong commitment to this major technological leap.
The Role of Chinese Suppliers Huawei and ZTE in U Mobile’s 5G Plans
As part of its network buildout, U Mobile has selected Chinese telecom giants Huawei and ZTE as the primary suppliers of its 5G equipment. Tan emphasized that both companies are leading providers in 5G technology and will also assist in financing the project, alongside U Mobile’s own capital expenditures. However, Tan clarified that the deal is not yet finalized, and further discussions are ongoing.
Huawei and ZTE’s involvement highlights the growing importance of Chinese technology firms in global 5G network infrastructure, despite ongoing geopolitical tensions. The selection of these suppliers marks a pivotal moment for Malaysia’s 5G landscape, as U Mobile seeks to ensure the network’s high performance and reliability.
Financing U Mobile’s 5G Network: Capital Expenditure and Bank Support
To fund the ambitious rollout, U Mobile will rely on a combination of its own capital expenditure and external financing through banks. The company has secured additional funding from CIMB Bank, a major Malaysian financial institution, which will support the project. The rollout is expected to occur within 15 to 18 months, with U Mobile confident that it can meet its deadlines without external assistance or new partners.
This financing strategy underlines U Mobile’s independent approach to the rollout, highlighting the company’s financial strength and long-term vision in the competitive telecom market.
Government Approval for Second National 5G Network
The Malaysian government’s decision to approve a second 5G network, led by U Mobile, is a direct response to the monopolistic concerns surrounding the existing DNB network. The government’s initiative aims to break the current 5G duopoly by introducing competition and ensuring greater transparency in the deployment of 5G services.
U Mobile’s entry into the 5G space is a significant development in Malaysia’s telecom sector, providing consumers with more choices and potentially lowering costs. The second network is expected to foster innovation and improve the overall quality of 5G services in the country.
U Mobile’s IPO Considerations and Future Prospects
In addition to its 5G rollout plans, U Mobile has hinted at the possibility of an initial public offering (IPO) by the end of 2025. Tan did not specify the amount the company aims to raise but indicated that the move could provide additional capital to support U Mobile’s growth, including its 5G network expansion.
The IPO plan reflects U Mobile’s long-term growth strategy, signaling confidence in its market position and ability to compete with major industry players.
The Impact of 5G on Malaysia’s Telecom Industry
The roll-out of a second 5G network is poised to disrupt the Malaysian telecom industry, offering faster, more reliable services to consumers and businesses alike. With the involvement of Huawei and ZTE, U Mobile is set to leverage advanced technology to meet the growing demand for high-speed connectivity.
The competition between U Mobile’s 5G network and DNB’s state-backed offering will likely drive innovation and improvement in services, benefiting consumers and positioning Malaysia as a leader in 5G adoption in Southeast Asia.
Frequently Asked Questions (FAQs)
1. When will U Mobile launch its 5G network in Malaysia?
U Mobile plans to complete its 5G network rollout by mid-2026. The company expects to have the network operational within 15 to 18 months from now.
2. Who are the suppliers for U Mobile’s 5G network?
U Mobile has chosen Huawei and ZTE as the primary suppliers of its 5G equipment. These companies are recognized for their advanced 5G technology and will assist with financing the network’s buildout.
3. How will U Mobile finance its 5G rollout?
U Mobile will fund its 5G network through a combination of internal capital expenditures and external financing, secured through CIMB Bank. The company is not seeking additional local partners for the project.
4. Why is Malaysia rolling out a second 5G network?
The Malaysian government approved a second 5G network to break the duopoly held by DNB and encourage greater competition. This initiative aims to enhance transparency and service quality in the 5G sector.
5. Will U Mobile’s 5G network be available nationwide?
Yes, U Mobile plans to launch its 5G network across Malaysia, providing nationwide coverage and positioning itself as a major player in the country’s telecom sector.
