Malaysian telco U Mobile and Axiata-owned telecoms infrastructure company Edotco say they have formed a partnership to accelerate the rollout of 5G under the government’s planned dual network model.
Under an MoU signed on Thursday and announced on Friday, Edotco will provide U Mobile with information and access to its tower infrastructures, resources and expedited site delivery to facilitate the telco’s 5G network rollout.
U Mobile and Edotco will also jointly develop a streamlined process to drive efficiency in site tower infrastructure rollout and handover. This will include using AI and data analytics to identify suitable tower locations and structures, as well as working with various state agencies to enable faster and more efficient site acquisition and permissions.
The two companies will also discuss commercial arrangements for various infrastructure requirements, including built-to-suit sites, co-locations, site upgrades and indoor coverage.
All of this will enable faster on-air time for new 5G sites, expedite coverage expansion, and establish a cost-efficient and competitive offering to enable fast rollouts, the companies said in a joint statement.
U Mobile – which recently renewed its lease contract with Edotco for another term – also said it is working on a site consolidation plan that aims to enhance aesthetics as well as lower network opex, which it says will further advance deployment of 5G using existing infrastructure.
U Mobile CTO Woon Ooi Yuen said that leveraging Edotco’s tower infrastructure footprint was “in line with the Malaysian government’s mandate for dual 5G networks” and would strengthen U Mobile’s position to deploy the second 5G network.
The Ministry of Communications has been planning to launch a second 5G network to compete with existing wholesale 5G operator DNB since May 2023. The launch of the second operator has been contingent on two conditions, the first being that DNB achieve 80% coverage in populated areas. That condition was met at the end of last year.
The second condition was the finalisation of the share subscription agreements (SSAs) signed by Telekom Malaysia, Maxis, U Mobile, YTL and CelcomDigi’s Infranation in December 2023 take a collective 70% stake in DNB. That process was completed last month, with the exception of Telekom Malaysia, which is expected to finalise its SSA next month.
The SSAs come with an option that allows each telco to sell their DNB stake in order to take a stake in the second 5G network. They are not allowed to own stakes in both.
In their statements confirming that their DNB SSAs have been finalised, U Mobile, Maxis and CelcomDigi each said they were committed to play a role in the second network.
Last month, representatives from the Ministry of Communications, the Ministry of Digital, the Ministry of Finance, and the Ministry of Investment, Trade, and Industry met to discuss their respective roles and functions in implementing the dual 5G network model.