13 November 2024
U Mobile has defended its qualifications to run Malaysia’s second 5G network after enduring a week of criticism from rivals, industry analysts and politicians who expressed bafflement at the government’s decision to give U Mobile the nod.
On 1 November, the Malaysian Communications and Multimedia Commission (MCMC) picked U Mobile to implement Malaysia’s second 5G network to compete with original 5G operator Digital Nasional Berhad (DNB). Most of the criticism has focused on the fact that U Mobile is the youngest and smallest of the contenders, having only started services in 2007.
The MCMC has issued a statement defending the decision, saying that the decision was ‘based on a combination of factors,’ from its business and technical plans, consumer complaints and satisfaction records to its performance in carrying out other infrastructure initiatives, including Universal Service Provision (USP) projects such as JENDELA Phase 1 and other 4G upgrade projects.
U Mobile Chairman Vincent Tan has defended the telco’s ability to roll out the second 5G network in a column published in Business Today. Tan cited U Mobile’s 95% network population coverage, its success in the JENDELA and USP programmes, and its ability to undersell the competition, particularly with 5G.
“As the first telco in the country to offer 5G service at no additional costs for all Malaysians and consistently offering similar services at 20-25% cheaper than competitors, U Mobile’s aggressive investments and innovations have and will continue to challenge our competitors resulting in cheaper and better services for all Malaysians,” said Tan. Tan also reiterated earlier comments from MCMC that the second network will be funded entirely by U Mobile, as opposed to being subsidised with taxpayer money, as was the case with DNB.
