Malaysia’s second 5G operator U Mobile said on Tuesday it has selected Chinese vendors Huawei and ZTE as key tech partners in rolling out its next-gen 5G network with the ambitious goal of achieving 80% coverage within the first year of deployment.
At a press conference in Putrajaya International Convention Centre (PICC), U Mobile said that Huawei gear will be deployed in peninsular Malaysia, while ZTE equipment will be deployed in Sabah and Sarawak.
U Mobile said the new network will support both 5G and 5G-Advanced, and will be designed especially to support enterprise customers with network slicing and comprehensive indoor coverage. The telco said it will focus its non-consumer 5G efforts on key areas such as transportation hubs, medical and sports facilities, smart cities and data centres.
U Mobile chairman Vincent Tan said the telco aims to cover 80% of populated areas within the first 12 months of the start of deployment, and 90% coverage in the following 12 months.
“Huawei and ZTE are no strangers to U Mobile. Having been our long-term infrastructure partners, they have a proven global deployment track record, hence, we are looking forward to pivoting our business together,” Tan said at the signing ceremony.
U Mobile signed separate deals with Huawei and ZTE in September 2024 to explore and develop 5G use cases in Malaysia focused on verticals and the agriculture sector. U Mobile also signed an MoU with ZTE in August 2024 to collaborate on fast 5G deployment, which could be a factor in U Mobile hitting its deployment targets.
Those deals were signed before the Malaysian Communications and Multimedia Commission (MCMC) selected U Mobile to be the country’s second 5G wholesale operator in November 2024. U Mobile received its official letter of approval from MCMC at the end of last month to commence the rollout.
“We started this selection process last year with invitations to tender sent out to network equipment and software provider companies from all regions. Ultimately, only two Chinese companies responded and we are delighted to work with Huawei and ZTE on this significant endeavour,” said U Mobile CTO Woon Ooi Yuen. “Apart from their global technology track record, they have also shared vision for an efficient and rapid rollout.”
U Mobile didn’t supply any financial details about how much it will invest in the rollout. According to The Edge Malaysia, U Mobile CEO Wong Heang Tuck said it would involves “millions of ringgit", and that funding for the rollout would come from a mix of bank and vendor financing, as well as proceeds from it planned IPO.
Wong cautioned that the timing of the IPO would depend on global market conditions, given the current volatility in the midst of US President Donald Trump’s tariff war, the report said.
Wong also said U Mobile’s wholesale 5G rates would be similar to that of existing 5G wholesaler Digital Nasional Berhad (DNB), which currently charges RM30,000 (a little over US$6,790) per Gbps per month, the report added.
