KUALA LUMPUR, Nov 7 — Communication Minister Fahmi Fadzil today said that U Mobile Sdn Bhd was chosen as Malaysia’s second 5G network provider via an open tender process, and not a direct award.

He said that the Malaysian Communications and Multimedia Commission (MCMC) had conducted appropriate evaluation on the telecommunication company.

"The MCMC, as an independent body, has conducted an appropriate evaluation through the implemented tender process.

"This decision must be respected by all parties, as the appointment of the second 5G network provider was made based on good governance, not through a direct award,” he said in the Dewan Rakyat during Question Time.

Fahmi was responding to Pasir Gudang MP Hassan Karim, who asked why the government granted a licence to U Mobile to implement the second 5G network.

He explained that the selection of the company to implement the second 5G network was based on several factors, including the business and technical plans submitted, the track record of complaint rates and customer satisfaction, and their performance in implementing other infrastructure initiatives.

"This includes contributions to the Universal Service Provision projects, such as Phase 1 of Jendela and the 4G upgrade projects, which align with MCMC’s commitment to enhancing user experience and service excellence.”

"For this selection, regulatory commitments have been established to ensure compliance with the set standards. MCMC will closely monitor these commitments, and regulatory actions and enforcement will be carried out against any non-compliance,” he said.

Fahmi also said that the general requirement for foreign equity ownership in individual Network Facility Provider (NFP) licences and individual Network Service Provider (NSP) licences is a maximum of 49 per cent, while the Bumiputera equity holding must be at least 30 per cent.

"These requirements are stipulated through special licence conditions for individual licences.”

"Currently, U Mobile’s foreign equity ownership complies with the special licence conditions issued to them. U Mobile has also committed, in a media statement released on November 2, 2024, to reduce foreign ownership to 20 per cent to ensure greater control by Malaysians and invite participation from local investors.”

"Therefore, the decision to select U Mobile as the provider of Malaysia’s second 5G network is not in conflict with the special licence conditions for an individual licence,” he said.

Fahmi added that U Mobile is committed to implementing Malaysia’s second 5G network by collaborating with various stakeholders, including other telecommunications companies, to provide world-class 5G services to users.

"U Mobile is allowed to cooperate with other MNOs to leverage their respective strengths in the implementation of Malaysia’s second 5G network, subject to MCMC’s approval.”

"For your information, U Mobile has a track record of over 17 years and is well-positioned to implement Malaysia’s second 5G network. It has also been named ‘Best Mobile Service Provider in Malaysia’ by Frost & Sullivan six times,” he said.