KUALA LUMPUR (Sept 1): U Mobile Sdn Bhd decided that it will not pursue the investment option in the state-owned fifth generation (5G) agency Digital Nasional Bhd (DNB), following extensive discussions and deliberations on the matter.

In a statement on Thursday (Sept 1), U Mobile said the decision not to invest in DNB does not affect its ability to provide 5G services to customers, as access to DNB’s 5G network infrastructure is governed by a separate access agreement, which is not linked to the equity investment in DNB.

“U Mobile is supportive of the government’s vision of a single wholesale network (SWN) model for 5G deployment in Malaysia and is grateful to have been invited by the government to invest in DNB.

“U Mobile has had extensive discussions and deliberations on the matter and after taking into consideration the terms of the investment as it currently stands, the telco has decided that it will not pursue the investment option in DNB,” it said in a statement.

The telco added that it would better serve Malaysians by focusing on its strengths of providing innovative connectivity and digital services that would realise the full potential of 5G technology.

“U Mobile, along with the other telcos, is in discussion to finalise the 5G access agreement with DNB. Once it is finalised and signed, DNB’s 5G access when combined with U Mobile’s existing 4G network will enable U Mobile customers to enjoy a truly seamless connectivity experience.

“U Mobile has full faith that DNB will be on schedule for the deployment of quality 5G network infrastructure and that it will carry out the government’s mandate to provide wholesale 5G coverage and capacity on an equitable and non-discriminatory basis via the 5G access agreement,” the telco added.

To recap, DNB had in a statement on Aug 31, said discussions on 5G access agreements are progressing with all six mobile network operators (MNOs) involved, and under a separate and independent track.

The six MNOs are Maxis Bhd, U Mobile, Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd, YTL Communications Sdn Bhd and Telekom Malaysia Bhd.

Following a media report that Maxis and U Mobile do not plan to take stakes in state-owned DNB, the 5G agency said the execution of share subscription agreements (SSAs) with the MNOs will be concluded soon.