U Mobile Sdn Bhd is optimistic about deploying Malaysia’s second 5G network independently within the next 15 to 18 months, according to chairman Tan Sri Vincent Tan. Speaking during a media briefing, he dismissed concerns about the company’s capability to undertake the project without government funding or local partners.
Tan highlighted plans to collaborate with Chinese telecommunications giants Huawei Technologies Co Ltd and ZTE Corp for equipment supply and financing. He noted that both companies are the best choices in terms of 5G technology, adding that U Mobile will rely on its capital expenditure and bank financing to support the rollout. However, details regarding the total capital required remain undisclosed.
Industry analysts remain sceptical about U Mobile’s ability to manage the project. Hong Leong Investment Bank expressed doubts over the company’s financial position and suggested a merger might be a viable option. Similarly, Kenanga Research noted potential delays stemming from the need to finalise partnerships, appoint technology vendors, and secure financing. It is speculated that the telco may collaborate with CelcomDigi or Maxis, but as mentioned earlier by its chairman earlier, any local partnerships are looking to be unlikely.
On a related note, U Mobile last week announced the signing of a memorandum of understanding (MoU) with CIMB to secure financial support for its upcoming 5G network rollout. Its CEO, Wong Heang Tuck, emphasised the bank’s role in aligning with Malaysia’s digitalisation goals and strengthening the telco’s ability to deliver a rapid and cost-efficient rollout as the country’s second 5G network provider.
In addition to the 5G rollout, Tan revealed plans to list U Mobile on Bursa Malaysia by the end of 2025. The company’s IPO, originally slated for 2018 and later delayed, is now being actively developed, with a proposal expected in the coming months.
Tan’s renewed commitment to an IPO follows his decision in 2022 to reject a buyout offer from Maxis, opting instead to retain independence and pursue growth. U Mobile is reportedly aiming to raise over RM2.25 billion through the public offering.
(Source: The Edge)
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