KUALA LUMPUR – The court of public opinion should not be so quick to pass judgement on telecommunications company U Mobile Sdn Bhd’s performance as the nation’s second 5G network operator, said Internet veteran Mohamed Awang Lah.
Mohamed, who is the former chief executive of Malaysia’s first internet service provider, Joint Advanced Research Integrated Networking (Jaring), said that U Mobile, as one of the country’s youngest telcos, requires time to demonstrate its capabilities.
“Since U Mobile was only just appointed for the deployment and have yet to implement steps yet, we should only make our judgement after they have rolled out services (as the second 5G network operator),” Mohamed, known as Malaysia’s father of the internet, told Scoop.
“I don’t think it’s fair to assess them now. In regards to developing services, we don’t know how much they can do, so we should wait for them to do it first before we judge.”
Mohamed also addressed concerns over U Mobile’s ownership structure, particularly the involvement of big-name shareholders.
“Of course, there is the issue of shareholders and big names. It’s difficult to say whether it’s good or bad, fair or not—let’s put that aside,” he said, emphasising that the focus should remain on U Mobile’s performance moving forward.
While expressing confidence in U Mobile’s financial capability to deliver on its tasks, Mohamed noted that key issues such as the telco’s 5G coverage and its ability to compete with Digital Nasional Bhd (DNB) remain uncertain.
DNB, a special-purpose vehicle under the Finance Ministry, was established in 2021 during the Perikatan Nasional administration to develop the nation’s 5G infrastructure under a single wholesale network model.
However, in May 2023, Prime Minister Datuk Seri Anwar Ibrahim’s unity government announced a shift to a dual network system, effectively breaking DNB’s monopoly in the 5G sector.
On November 1, the Malaysian Communications and Multimedia Commission (MCMC) confirmed U Mobile’s appointment as the country’s second 5G network operator. The regulator stated that U Mobile would be allowed to collaborate with other mobile network operators (MNOs) for the rollout.
The decision sparked criticism from some quarters, particularly over U Mobile’s ownership structure. Critics noted that its largest shareholder, with a 48.26% stake, is Straits Mobile Investments Pte Ltd, a subsidiary of Singapore’s Temasek Holdings.
Additionally, Yang di-Pertuan Agong Sultan Ibrahim Sultan Iskandar holds a significant 22.3% stake in the company.
Addressing the concerns, Communications Minister Fahmi Fadzil assured the Dewan Rakyat that the selection of U Mobile was not influenced by the telco’s shareholders. He emphasised that MCMC’s decision was based on thorough technical and commercial evaluations conducted through an open tender process.
U Mobile has since announced that Straits Mobile will reduce its stake in the telco to 20%, fulfilling its commitment to limit foreign ownership. – December 2, 2024
