NO ministers or deputies were involved in the decision-making process over the tender for Malaysia’s second 5G network provider that was eventually awarded to U Mobile Sdn Bhd, says Communications Minister Fahmi Fadzil.

U Mobile’s appointment was also decided by the Malaysian Communications and Multimedia Commission (MCMC) as an independent body, he said.

“This decision has to be respected by all because the appointment of the second 5G network provider was made based on good governance and not direct award.

“MCMC will continue to monitor developments of U Mobile’s second 5G network implementation to ensure that all laws under the Communications and Multimedia Act 1998 are followed,” said Fahmi during Minister’s Question Time yesterday.

He was responding to Hassan Karim (PH-Pasir Gudang), who asked for the justification behind U Mobile’s appointment as Malaysia’s second 5G network provider, especially when nearly half of its ownership, or a 48.3% stakes, rests with Singapore-based Straits Mobile Investments Pte Ltd.

Similar questions were also raised by Datuk Wan Saiful Wan Jan (PN-Tasek Gelugor) in a supplementary question.

“No ministers or deputy ministers were involved in the evaluation process.

“MCMC looked into it and ensured that foreign shareholding does not exceed 49%, and U Mobile has given its commitment to reduce it,” said Fahmi.

According to him, among other factors that contributed to U Mobile’s selection were based on the mobile network operator’s (MNO) business and technical plans, complaint and customer satisfaction records, and the company’s performance in executing other infrastructure initiatives.

“This includes contributions to Universal Service Provision (USP) projects such as Jendela Phase 1 and the 4G upgrade project, which aligns with MCMC’s commitment to improving user experience and service excellence,” he said.

On Nov 1, MCMC announced that the second 5G network in Malaysia would be implemented by U Mobile after it conducted a detailed technical and commercial evaluation to select the MNO for the project.

Presently, Maxis, CelcomDigi, U Mobile and YTL Communications Sdn Bhd each hold a 16.3% stake in DNB, the entity set up to operate the first 5G network in the country in 2021.

On Nov 4, U Mobile said it would reduce its foreign majority shareholding to 20% as it prepared itself for Malaysia’s second 5G network rollout.

According to the Companies Commission of Malaysia, other than Straits Mobile Investments, major shareholders of U Mobile are His Majesty Sultan Ibrahim, King of Malaysia (22.3%), Magnum Bhd (7.8%), Singer (Malaysia) Sdn Bhd (6.1%) and U Telemedia Sdn Bhd (5.6%).

https://www.thestar.com.my/news/nation/2024/11/08/no-direct-award-says-fahmi