KUALA LUMPUR: The decision to appoint U Mobile Sdn Bhd as Malaysia’s second 5G network provider adheres to the special licence conditions for individual licences, Communications Minister Fahmi Fadzil affirmed. He stated that the government, through the Malaysian Communications and Multimedia Commission (MCMC), had conducted a comprehensive selection process, considering both technical and commercial factors to identify the mobile network operator (MNO) responsible for deploying the country’s second 5G network.
According to BERNAMA News Agency, Fahmi emphasized that the selection was carried out through a “beauty contest” process, akin to a tender process, rather than a direct award. During the Minister’s Question Time session in the Dewan Rakyat, Fahmi explained that the criteria for choosing the second 5G network provider included the MNO’s business and technical plans, customer satisfaction and complaint records, and its track record in executing other infrastructure projects.
He further elaborated that t
he decision also considered contributions to Universal Service Provision (USP) projects, such as JENDELA Phase One and the 4G upgrade project, aligning with MCMC’s commitment to enhancing user experience and service quality. Fahmi assured that regulatory commitments had been established to ensure compliance with the required standards, with MCMC set to monitor these closely. Any non-compliance would lead to regulatory and enforcement actions.
Fahmi highlighted that the general foreign equity holding limit for individual Network Facility Provider (NFP) and Network Service Provider (NSP) licences is set at 49 percent, with a minimum of 30 percent bumiputera ownership. He noted that U Mobile’s foreign equity remains within the compliance scope established by its licence conditions. Moreover, U Mobile has committed to reducing foreign ownership to 20 percent to ensure greater control by Malaysians and encourage local investor participation.
In response to inquiries from Hassan Abdul Karim (PH-Pasir Gudang) abou
t the federal government’s rationale behind granting U Mobile the licence, given that 48.28 percent of its equity is held by Singapore-based Straits Mobile Investment Pte Ltd, Fahmi clarified that U Mobile is working towards reducing foreign equity. Additionally, when questioned by Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor) regarding U Mobile’s representation on the board of Digital Nasional Bhd (DNB), Fahmi stated that MNOs are required to hold shares in DNB, which entitles them to board seats. He asserted that there are no issues concerning the shareholding structure or corporate governance in this context.