Malaysian telco CelcomDigi officially submitted its proposal to build Malaysia’s second 5G network, while rival telco U Mobile has signed more MoUs – including a new financing deal – geared towards making its own case to be the new 5G operator.
CelcomDigi said it has submitted its proposal for the deployment of Malaysia’s second 5G network to the Malaysian Communications and Multimedia Commission (MCMC), claiming it's in the best position to deliver “the most affordable, fast, and efficient rollout” of the new 5G network.
Among its qualifications, CelcomDigi said it operates the widest 4G network in the country (with 18,000 sites) that’s also 5G-ready, and also has the biggest network of tower and infrastructure companies to facilitate expedient deployment. CelcomDigi also noted that over two-thirds of its network will be modernised by the end of this year.
Then there’s CelcomDigi’s service portfolio, which includes digital solutions increasingly powered by AI via its recently launched ‘CelcomDigi AI Experience Centre (AiX) collaboration hub.
CelcomDigi also touted its ecosystem of global and local technology partners, and the global expertise of its shareholders Axiata and Telenor “to drive rapid innovation of new emerging technology solutions for consumers and enterprises.”
“We have an opportunity to capitalise and build on the existing solid infrastructure, financial strength and robust ecosystem that we have invested in,” said CelcomDigi CEO Idham Nawawi in a statement.
CelcomDigi isn’t the only one angling to lead construction of the second 5G network. Maxis and U Mobile have also stated their intentions to be part of the action, although U Mobile has been the most aggressive in terms of publicly signing deals in preparation for it.
U Mobile gets 5G financing and more
On Wednesday, U Mobile said it has signed an MoU with AmBank Group, who will provide financing solutions to cover the cost of rolling out the second 5G network.
“We appreciate their commitment in providing us with the financial solutions to accelerate the deployment of the second 5G network in Malaysia," said U Mobile CFO Sandy Tsang, who added the deal would further strengthen U Mobile’s ability to implement the network cost-effectively and efficiently.
The AmBank Group deal is one of several U Mobile has signed in the past month to position itself as a contender for the second network.
Earlier this week, U Mobile signed an MoU with Time dotCom to develop customised backhaul solutions using Time’s fibre backhaul network to support U Mobile’s 5G deployment strategy and technical requirements.
Last Friday, U Mobile announced it had formed strategic partnerships with eight state-backed network facility provider companies (SBCs) from the PPIT Consortium (AKA Persatuan Penyedia Infrastruktur Telekomunikasi Malaysia) to streamline the 5G rollout process by collaborating on knowledge sharing and provision of access to tower structures, space, power and expedited site implementations.
Under that deal, U Mobile and the eight SBCs – which include D’ Harmoni Telco Infra, Konsortium Jaringan Selangor, Perlis Comm, Infra Quest, Sacofa, Desabina Industries, PDC Telecommunication Services and PINS Network Solutions – will also establish “cost-efficient commercial models for various infrastructure requirements including built-to-suit sites, co-locations and site upgrades, with the goal of establishing a competitive and sustainable offering between U Mobile and PPIT Consortium.”
U Mobile has also signed tower-related MoUs with PPIT Consortium member EdgePoint Towers and Edotco (whose subsidiary Yiked Bina is also a consortium member) to further its 5G ambitions.
While both CelcomDigi and U Mobile are keen to be the new 5G player, they’re also 5G collaborators. The two operators signed an MoU at Mobile World Congress 2024 in February to collaborate on developing use cases for 5G-Advanced as part of a broader agreement to share 100 multi-operator core network sites across Malaysia.
CelcomDigi and U Mobile also signed a separate deal with ZTE at the event to demonstrate the capabilities of 5G-A, AI and digital solutions for real-time live broadcasting. On Tuesday, the three companies announced they will run a live TV broadcast using 5G-A during the opening ceremony of the 2024 Sukma Games on August 17.
Decision by the end of this year
The Malaysian government has been planning to launch a second 5G wholesale network to compete with existing 5G operator DNB since May 2023. U Mobile and CelcomDigi (via subsidiary Infranation) completed a deal to buy stakes in DNB via share subscription agreements (SSAs) in June, along with Maxis and YTL, while Telekom Malaysia’s SSA is expected to finalised this 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.
According to The Edge Malaysia, Digital Minister Gobind Singh Deo has said the process of selecting an operator to switch from DNB to the second network should be completed by the end of this year.