KUALA LUMPUR – Telecommunications provider U Mobile has confirmed it will exit the Digital Nasional Bhd (DNB) shareholders’ agreement as part of its transition to becoming Malaysia’s newest 5G network provider.
In a statement, the telco said it will divest its 100,000 shares in DNB for RM100,000, in line with the government’s dual network plan.
However, it assured customers that their current 5G services will not be affected. U Mobile will continue to use DNB’s 5G infrastructure through a wholesale access agreement while building its own network.
The company said it remains on track to reach 80% coverage of populated areas within 12 months.
The company has partnered with Huawei Technologies Co Ltd and ZTE Corp for the rollout, with Huawei handling deployment in Peninsular Malaysia and ZTE in East Malaysia, according to reports.
U Mobile said its new “Next Gen 5G” network will offer better connectivity and innovative services, contributing to a more competitive digital landscape in Malaysia.
The announcement from the telco came in less than two months following its March 29 announcement that it had received the official letter of award from the Malaysian Communications and Multimedia Commission (MCMC) to develop Malaysia’s second 5G network.
MCMC announced in November last year that U Mobile had been selected to deploy the second 5G network, marking the end of a prolonged debate over the country’s 5G implementation strategy. The commission confirmed that the telco would be allowed to collaborate with other network providers on the rollout.
Malaysia had initially adopted a single wholesale 5G network under DNB, with five mobile network operators – CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd, and YTL Communications Sdn Bhd – taking equity stakes in DNB to facilitate its development.
The government later shifted to a dual network model to prevent monopolies. In August last year, CelcomDigi, Maxis, Telekom Malaysia, and U Mobile submitted their bids to MCMC to establish the second 5G network.
Proposals for an alternative network were first made in late 2021 but were rejected in March 2022. The government then offered a 70% stake in DNB to telcos, leading to protracted negotiations. Celcom, Digi, Telekom Malaysia, and U Mobile eventually reached an agreement in October 2023 to provide 5G services through DNB.
The development of the second 5G network is expected to accelerate nationwide 5G adoption and further Malaysia’s goal of becoming a leading digital economy. – May 15, 2025