In a significant move, Malaysian telecom operator U Mobile plans to withdraw its stake from the state-managed Digital Nasional Berhad (DNB) and focus on developing its own 5G infrastructure. This decision aligns with U Mobile’s aspiration to become the country’s latest 5G provider. The operator aims for its network to cover 80% of Malaysia’s populated areas within a year.
Despite selling its shares in DNB, U Mobile assured customers that their 5G connectivity would remain seamless. The company will retain a wholesale access agreement with DNB, allowing them to continue offering commercial 5G services while maintaining their independent rollout.
It’s noteworthy that U Mobile has partnered with major Chinese tech firms, Huawei and ZTE, as primary technology providers. This collaboration will support advanced features such as network slicing and 5G-A capabilities from inception. These features facilitate tailored network usage, benefiting sectors like healthcare, transportation, and smart cities.
An extensive focus on enhancing indoor coverage is also planned. Critical areas include transportation hubs, medical centers, sports venues, and data centers. The choice of Huawei and ZTE stemmed from a competitive tender process, demonstrating U Mobile’s strategic decision-making.
Previously, in 2024, the Malaysian Communications and Multimedia Commission (MCMC) greenlighted U Mobile to establish a secondary 5G framework. This approval followed DNB reaching 80% coverage in populated areas by late 2023. This milestone led to government endorsement for dual 5G networks, reversing an earlier directive that awarded sole 5G responsibilities to DNB.
The exiting decision from DNB paves the way for private telecommunications firms, including U Mobile, to explore independent strategies while potentially increasing competition in the industry. However, all operators, including CelcomDigi, Maxis, and YTL, currently provide 5G services through the state-administered network.