- As the 5G ecosystem grows, Malaysia plans to move towards a dual wholesale 5G network by the end of the year
- CelcomDigi and U Mobile are in the fray to build the second 5G network
- Other Malaysian telcos are likely to join the race
Malaysian service providers, CelcomDigi and U Mobile are vying to build the country’s second 5G network due to the demand for capacity to handle growing 5G traffic.
CelcomDigi recently announced that it has submitted a proposal to the Malaysian Communications and Multimedia Commission to deploy Malaysia’s second 5G network. In addition, U Mobile has signed several Memorandum of Understanding (MoU) to demonstrate its preparedness to deploy the country’s 5G network.
As 5G traffic increases, one network may not be enough to handle the growing demand. Malaysia had around 13.2 million 5G subscribers at the end of April 2024. Two 5G networks will allow service providers to build resilience and not over-depend on one network.
Other Malaysian telcos are likely to join the race to build the country’s second 5G network.
“CelcomDigi’s proposal sets out to build the most advanced 5G network to realize this ambition and accelerate widespread adoption for consumers and enterprises. We have an opportunity to capitalize and build on the existing solid infrastructure, financial strength and robust ecosystem that we have invested in,” said CelcomDigi’s CEO, Datuk Idham Nawawi, in a press note.
“We believe that we have submitted a compelling case to deploy Malaysia’s second 5G network – either alone or in partnership with others – towards ensuring a thriving 5G ecosystem built for the nation, with the rakyat in mind,” added Nawawi. (Ed. note: Rakyat means ordinary citizen.)
CelcomDigi is Malaysia’s largest service provider and claims to have 18,000 5G-ready base stations that are “primed to enable fast deployment” of 5G and 5G-Advanced technology. It also claims that by the end of 2024, over two-thirds of CelcomDigi’s network will be modernized, making it “the largest and most modern digital network in the country.” The company also noted that it has more than three decades of experience in deploying and running mobile infrastructure at scale.
The service provider has built an ecosystem of global and domestic technology partners along with the expertise of its shareholders, Axiata and Telenor, which it believes will help it “drive rapid innovation of new emerging technology solutions for consumers and enterprises.”
U Mobile goes on MoU-signing spree
CelcomDigi is facing competition from U Mobile which has signed multiple agreements to highlight its seriousness to build the second 5G network.
For example, U Mobile has an MoU with AmBank Group, which will provide financing solutions to meet the telco’s 5G network deployment requirements. It has also partnered with Time dotcom to use the latter’s fiber backhaul network to prepare for its rollout of the second 5G network.
Apart from these, U Mobile has also partnered with eight state-backed Network Facility Provider companies (SBC) – D’ Harmoni Telco Infra, Konsortium Jaringan Selangor, Perlis Comm, Infra Quest, Sacofa, Desabina Industries, PDC Telecommunication Services and PINS Network Solutions – to quickly roll out the 5G network if it is assigned the project.
“U Mobile is committed to bringing affordable, high-quality 5G to Malaysia, in line with the government's plan for a second 5G network to boost competition and drive sustainability of the country’s telecommunications industry,” said Woon Ooi Yuen, Chief Technology Officer, U Mobile in a press release.
Digital Nasional Berhad (DNB) was established in 2021 as Malaysia’s first wholesale 5G network that can be leased by the telcos to provide 5G services to their subscribers. Now, the Malaysian Government is keen to transition to a dual 5G wholesale network by the end of 2024. It decided to start the process last year once DNB achieved 80% coverage in populated areas. At the end of April 2024, DNB had touched 86.5% coverage in the country.
Malaysia’s five telcos, CelcomDigi, Maxis, Telekom Malaysia, U Mobile, and YTL Power International, each own a 14% stake in DNB, bringing their collective share to 70%. The Ministry of Finance owns the remaining 30% stake in DNB. The telcos will be allowed to own stakes in either of the two 5G networks.
It is not clear on what basis the Malaysian Government will award the contract to build the country’s second 5G network.