No direct award in U Mobile’s appointment as second 5G network provider


KUALA LUMPUR: U Mobile Sdn Bhd was appointed as Malaysia’s second 5G network provider through a tender process that was overseen by the Malaysian Communications and Multimedia Commission (MCMC), says Communications Minister Fahmi Fadzil.

U Mobile’s appointment was also decided by MCMC as an independent body through the tender process, added Fahmi.

“This decision has to be respected by all because the appointment of the second 5G network provider was made based on good governance and not direct award.

“The MCMC will continue monitoring developments of U Mobile’s second 5G network implementation to ensure that all laws are abided to, under the Communications and Multimedia Act 1998,” said Fahmi in Parliament during Minister’s Question Time on Thursday (Nov 7).

Fahmi was responding to Hassan Karim (PH-Pasir Gudang), who asked about the reasons behind U Mobile’s appointment as Malaysia’s second 5G network provider.

Hassan said U Mobile is nearly half-owned by Singapore-based Straits Mobile Investments Pte Ltd with a 48.3% stake.

Similar questions were also raised by Datuk Wan Saiful Wan Jan (PN-Tasek Gelugor) in a supplementary question.

On Nov 1, the MCMC announced that the second 5G network in Malaysia will be implemented by U Mobile after it conducted a detailed technical and commercial evaluation to select the MNO for the project.

Presently, Maxis, CelcomDigi, U Mobile and YTL Communications Sdn Bhd each hold a 16.3% stake in DNB, the entity set up to operate the first 5G network in the country in 2021.

On Nov 4, U Mobile said it will reduce its foreign majority shareholding to 20% as it readies itself to be Malaysia’s second 5G network rollout.

According to the Companies Commission of Malaysia, U Mobile is nearly half-owned by Singapore-based Straits Mobile Investments Pte Ltd with a 48.3% stake, and others were Magnum Bhd (7.8%), Singer (Malaysia) Sdn Bhd (6.1%) and U Telemedia Sdn Bhd at 5.6%

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U Mobile , 5G Network , Malaysia , MCMC , Fahmi Fadzil

   

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