The Malaysian Communications and Multimedia Commission (MCMC) has released a statement explaining its decision in selecting U Mobile as Malaysia’s second 5G network provider, highlighting various business and technical factors, including the telco’s record in customer satisfaction and infrastructure projects. It also pointed out the telco’s efforts on the Universal Service Provision projects, such as Jendela Phase 1 and the 4G upgrade, aligning with the commission’s goals of improved user experience and service quality.
Additionally, MCMC stated it can enforce regulatory responsibilities over the telco, ensuring compliance with established standards, and penalties will be applied in cases of non-compliance. As a 5G provider, U Mobile is also permitted to collaborate with ecosystem partners, though the regulator will oversee these partnerships to ensure benefits extend to all Malaysians.
KENYATAAN MEDIA
PEMILIHAN U MOBILE SDN BHD SEBAGAI PENYEDIA RANGKAIAN 5G KEDUA#MCMC pic.twitter.com/XEwPB08wJw
— MCMC (@MCMC_RASMI) November 6, 2024
MCMC also acknowledged U Mobile’s foreign shareholding, noting that any changes must be reported to it. The telco recently confirmed it intends to reduce its foreign ownership to 20 percent, addressing potential regulatory concerns. Currently, 48% of U Mobile is held by Straits Mobile Investments Ltd, a subsidiary of Singapore government-linked ST Telemedia.
Maxis, one of the unsuccessful bidders, expressed its intention to engage MCMC to better understand the regulator’s decision, noting it would explore options after consulting stakeholders. U Mobile, on its part, said it anticipates cooperation with CelcomDigi and Telekom Malaysia (TM), and disclosed ongoing engagements with leading technology providers, including Huawei.
Meanwhile, MCMC stated that the introduction of a second 5G network aims to foster competition and offer greater flexibility in telecommunications services. It believes that this setup will strengthen industry resilience and provide Malaysians with affordable high-speed connectivity options. Lastly, the regulator also assured that it would continue monitoring service quality among providers to support a robust telecommunications infrastructure for the country’s future.
(Source: MCMC, via X)
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