SINGAPORE: U Mobile, Malaysia’s fourth-largest mobile carrier, announced on Thursday that it will not invest in state-owned 5G agency Digital Nasional Bhd.
Malaysia has been one of Southeast Asia’s 5G laggards, and protracted delays in talks between the government and the country’s mobile operators to take a combined 70% stake in DNB could spell a further setback for the country’s 5G rollout.
“U Mobile has had extensive discussions and deliberations on the matter, and after taking into consideration the terms of the investment as they currently stand,” the company said in a statement.
The announcement backs up a Reuters report from Wednesday, which quoted sources as saying that U Mobile and rival Maxis had no plans to invest in DNB because neither could see the benefits of being a minority shareholder in the 5G agency. U Mobile, whose shareholders include Singapore’s Straits Mobile Investments and Malaysian tycoon Vincent Tan, stated that its decision will have no impact on its ability to provide 5G services because access to DNB’s 5G network infrastructure is governed by a separate access agreement that is unrelated to the equity investment in DNB.
“U Mobile, along with the other telcos, is in discussions with DNB to finalize the 5G access agreement,” U Mobile said. “Once finalized and signed, DNB’s 5G access will provide U Mobile customers with a truly seamless connectivity experience when combined with U Mobile’s existing 4G network.”
