Malaysia’s second 5G operator U Mobile reportedly intends to complete the rollout its 5G network by mid-2026, and says it won’t need to partner with other operators to do it.
According to a report from The Edge Malaysia, U Mobile chairman Vincent Tan told a media briefing that the telco – which is tasked with deploying the country’s second wholesale 5G network to compete with Digital Nasional Berhad (DNB) – will roll out the 5G network over the next 15-18 months.
Tan also said denied industry analyst comments that U Mobile would struggle to roll out the network all by itself, saying U Mobile has the experience and the funding it needs to get the job done, the report said.
Tan’s comments came after Hong Leong Investment Bank said in a research note last week that the 5G deployment will be “an uphill task for U Mobile considering its size and financials” unless it finds a partner or considers a merger. A research note from Kenanga Research said likewise, saying that CelcomDigi or Maxis would be viable partners to consider, the report added.
Concerns about U Mobile’s financials are nothing new – analysts made similar observations shortly after the Malaysian Communications and Multimedia Commission (MCMC) named U Mobile as the country’s second 5G operator last November.
Last week, U Mobile signed a MoU with CIMB Bank to extend financing support for its 5G network rollout.
Tan also said U Mobile is looking at Huawei or ZTE as potential vendor partners for the network. “They will be supplying the 5G equipment and provide financing,” he said.
Meanwhile, Tan confirmed that U Mobile is still looking at an IPO as a fundraising option to be launched by the end of 2025, the report added. “We hope to submit the proposal by the next few months and be listed on Bursa Malaysia by the end of this year,” he said.
Tan said it was too early to say how much money the IPO would pull in. However, when reports of a U Mobile IPO emerged in July 2024, Reuters said the listing could raise more than US$500 million, although that was on the assumption that the telco would file its IPO application the following month, which it didn’t. U Mobile has had IPO ambitions as far back as 2016.