Maxis Bhd intends to engage with the Malaysian Communications and Multimedia Commission (MCMC) to understand the rationale for picking U Mobile Sdn Bhd to build and operate the nation’s second 5G network, a service it claimed it would have been able to deliver at a better rate.

“With Maxis’ robust network infrastructure and know-how, our 5G network would have taken far less time and resources to cover the same percentage of populated areas that the first 5G network covered. We would also have provided in-building 5G coverage in those areas,” it said in a statement released on Sunday (Nov 3).

On the same day, rival telecommunication company CelcomDigi Bhd said it intended to discuss with stakeholders to ‘consider several viable options’ without elaborating them further.

On Friday (Nov 1), MCMC said it has decided that Malaysia’s second 5G network shall be implemented by U Mobile.

It said the selection of the mobile network operator (MNO) to implement the network underwent a rigorous process ‘encompassing detailed deliberations on technical and commercial aspects’.

“U Mobile Sdn Bhd, subject to the approval of MCMC, is allowed to collaborate with other MNOs in the implementation of Malaysia’s Second 5G Network.

“MCMC will continue to oversee the progress of the implementation of Malaysia’s Second 5G Network to ensure total compliance with all regulatory requirements as provided for in the Communications and Multimedia Act 1998 (Act 588),” it said in the statement.

Maxis said it would engage with MCMC to understand the rationale for the decision and it would consider its options after discussions with all stakeholders.

It underlined the fact that it was a ‘homegrown Malaysian company, led by Malaysians and principally owned by Malaysians’ and that Malaysians with 77% of its shares.

“As a strong advocate for the dual 5G network model, we submitted a comprehensive technical and commercial proposal in response to MCMC’s invitation to tender for the second 5G network.

“Our proposal encapsulated our 30 years of experience in financing, building, and operating first-rate networks and in providing top-notch service to our customers in Malaysia,” it added.

Maxis stated that it was ‘primed to help improve 5G adoption’ among enterprises, which it said was a key goal of the government.

“With Maxis’ robust network infrastructure and know-how, our 5G network would have taken far less time and resources to cover the same percentage of populated areas that the first 5G network covered,” it said.

Maxis said it would continue to explore its 5G options and that its services would continue with its existing access agreement with Digital Nasional Bhd (DNB), the Ministry of Finance-owned (MOF) special purpose vehicle tasked with the country’s initial 5G rollout.

In its statement, CelcomDigi said it believed that it had ‘presented a compelling technical and commercial proposal to build the second 5G network’.

CelcomDigi, Malaysia’s largest mobile network operator with 20.2 million users, said it will continue to focus on merger integration.

In a statement on Saturday (Nov 2), U Mobile said it was ‘excited to collaborate with various stakeholders, including MCMC and other telecommunications companies such as CelcomDigi and Telekom Malaysia.’

It said it has been proactively engaging with global technology providers including Huawei and will also be working with DNB.

“In alignment with our commitment to the national agenda, U Mobile will reduce its foreign majority shareholding to 20%, ensuring greater Malaysian control and inviting participation from local investors,” it added.

Commenting on the decision, Telekom Malaysia Bhd (TM) said it remained ‘supportive of initiatives that enhance the benefits of 5G technology’.

“As Malaysia’s leading fibre infrastructure provider, TM has extensive nationwide fibre coverage, robust digital platforms, and proven rollout experience. We leverage our core competencies to support the industry’s technological advancement, including the 5G ecosystem.

“TM is committed to providing high-quality converged digital offerings across various segments of its customers. We remain focused on delivering 5G services and solutions to our consumers and business segments. Our priority is to ensure that all customers continue to have seamless access to reliable 5G services and ecosystem,” it said. – TMR