U Mobile picks Huawei and ZTE to deploy Malaysia's second 5G network
U Mobile reportedly announced on Tuesday that it has selected Huawei and ZTE to build Malaysia's second 5G network.
According to local news reports, Huawei will handle the 5G rollout in Peninsular Malaysia, while ZTE will take the lead in East Malaysia, which includes the states of Sabah and Sarawak.
"Huawei and ZTE are no strangers to U Mobile. Having been our long-term infrastructure partners, they have a proven global deployment track record, hence, we are looking forward to pivoting our business together," said U Mobile Chairman Vincent Tan at the signing ceremony in Putrajaya, according to The Edge Malaysia.
Details regarding the timing of the project and the cost of the transaction were not disclosed.
The choice of Chinese equipment provider is bound to raise eyebrows in Malaysia, even if the choice seems preordained.
In September 2023, Prime Minister Anwar Ibrahim sparked controversy when he said that the decision to allow a second wholesale 5G network would allow for "more effective participation by Huawei."
He argued the construction of a second 5G network was made so that Malaysia could benefit from different technologies. "We in Malaysia, and I believe rightly, decided that while we get the best from the West, we also should benefit the best from the East," he said.
DNB, the country's first wholesale 5G network, selected Ericsson as the equipment supplier.
Dual 5G network model
The Malaysian government announced its dual 5G network model in May 2023 to ensure competition, better quality of service and wider coverage, especially in underserved and remote areas. It committed to allowing the construction of a second wholesale network once the DNB network reached 80% coverage.
U Mobile won the contract to build Malaysia's second 5G network last November, winning out over larger and more established rivals such as CelcomDigi and Maxis.
Industry observers considered this a controversial choice. U Mobile is the smallest operator in Malaysia, raising questions about its ability to build a 5G network to rival DNB's.
The Malaysian Communications and Multimedia Commission (MCMC) issued the official letter of award to U Mobile more than two weeks ago, paving the way for the construction of the country's second 5G network.
Last week, the telecom operator announced that it has signed a memorandum of understanding with EdgePoint Infrastructure to become one of its preferred partners for 5G in-building communications (IBC) infrastructure.
The two companies also agreed to develop and deploy solutions tailored to each site. Specifically, U Mobile and EdgePoint will work on high-speed connectivity solutions needed to run applications related to AI, smart cities and autonomous systems.
