The Malaysian Communications and Multimedia Commission (“
MCMC”) announced on 1 November 2024 that mobile network operator, U Mobile Sdn Bhd (“
U Mobile”) has been selected to implement Malaysia’s second 5G network.
1
The MCMC also announced that, subject to its approval, U Mobile “
is allowed to collaborate with other mobile network operators” in the implementation of the second 5G network. While the MCMC did not elaborate on what this means, there appears to be room for other mobile network operators to participate in the implementation of the country’s second 5G network.
While the announcement signals the end of the MCMC’s selection process for the operator of Malaysia’s second 5G network which started on 1 July 2024
2, the award of the right to implement the second 5G network to U Mobile and any collaboration with other mobile network operators for the implementation of the new network is likely to lead to a realignment of the shareholders of Digital Nasional Berhad, the operator of the existing 5G network in Malaysia, whose shareholders currently comprise the Malaysian Government, U Mobile, CelcomDigi Berhad (
through its wholly-owned subsidiary, Infranation Sdn Bhd), Maxis Broadband Sdn Bhd and YTL Communications Sdn Bhd (
through YTL Power International Bhd).
Alert by Natalie Lim (Partner) and Cheam Tat Sean (Associate) of the Technology, Media and Telecommunications Practice of Skrine.