Fahmi: MCMC can ensure U Mobile 5G contract won’t unbalance telco ‘ecosystem’

PUTRAJAYA, Nov 8 — The Malaysian Communications and Multimedia Commission (MCMC) can set conditions to prevent an imbalance in the ecosystem as the nation develops its second 5G network, Communications Minister Fahmi Fadzil said.

This statement follows telecommunications provider U Mobile’s announcement of its readiness to collaborate with strategic partners in building the network.

“We can learn from what happened with CelcomDigi in the past, including the disposal of its subsidiary Yoodo and the return of spectrum,” Fahmi said.

The minister noted that MCMC has the authority to impose measures to prevent an imbalance, though he emphasised that it is still too early to specify what conditions might be applied.

Fahmi also stated that the MCMC’s decision to select U Mobile for the development of the second 5G network was made unanimously by the commission members.

“A large portion of MCMC’s assessment was carried out independently, with financial and technical evaluations conducted by an independent team,” he assured, adding that the administration was not involved.

MCMC evaluated U Mobile’s business plan, technical proposals for network development, consumer satisfaction metrics, and its track record in completing previous MCMC projects.

Fahmi emphasised that this arrangement is neither a contract nor a licence, and no public funds are involved.

He also explained that U Mobile qualified as one of the few companies meeting the criteria for developing the second 5G network.

“To qualify, a company must have a comprehensive shareholding agreement, shares in Digital Nasional Berhad (DNB), and only three companies meet these conditions: CelcomDigi, Maxis, and U Mobile,” he said.

CelcomDigi has 18,000 towers, Maxis has 12,000, and U Mobile has 10,000.

U Mobile was selected to implement the second 5G network in Malaysia on November 1 this year.