KUALA LUMPUR – The Malaysian Communications and Multimedia Commission (MCMC) has the right to impose additional conditions on U Mobile Sdn Bhd before granting them the spectrum to operate the country’s second 5G network, said Communications Minister Fahmi Fadzil.
He explained that these conditions are necessary to maintain balance and ensure healthy competition among telecommunications (telcos) companies.
“This is standard procedure. We must distinguish between the criteria for selection and the conditions for spectrum allocation. These are two separate matters, and all telcos understand this,” he said after launching National Courier Day 2024, which was also attended by his deputy Teo Nie Ching, and secretary-general Datuk Mohamad Fauzi Md Isa.
Emphasising that the additional conditions are designed to ensure effective collaboration between U Mobile and Digital Nasional Bhd (DNB), Fahmi added a similar approach was taken with Celcom Digi Bhd during their merger in 2022.
“When Celcom and Digi merged, MCMC imposed conditions, including the return of some spectrum. If U Mobile plans to collaborate with any other telco to develop the country’s second 5G network, MCMC will apply similar conditions,” he said.
On Nov 1, MCMC announced U Mobile’s selection as Malaysia’s second 5G network operator, aiming to ensure the full benefits of 5G technology reach the public, industries, and the nation.
The selection was based on a combination of factors, such as business and technical plans, customer complaint rates, satisfaction records, and the company’s track record in executing other infrastructure projects. U Mobile is also allowed to collaborate with other partners in the ecosystem, subject to MCMC’s approval. – November 9, 2024