KUALA LUMPUR, Nov 7 — Communications Minister Fahmi Fadzil said he and his deputy were not involved in choosing U Mobile Sdn Bhd as the mobile network operator (MNO) for the country’s second 5G network.
Fahmi added that the decision to select U Mobile does not contravene the special licence conditions for individual licences.
“This selection was conducted like a ‘beauty contest’ — essentially, a tender — not a direct award,” he said during the Ministers’ Question Time in the Dewan Rakyat today.
He explained that the Malaysian Communications and Multimedia Commission (MCMC) was free to evaluate eligible MNOs via tender, taking into account business and technical plan factors, customer satisfaction and complaint rate records, and their performance in implementing other infrastructure initiatives.
“(The MCMC) has examined and ensured the shareholding issue of no more than 49 per cent foreign equity has been met, and U Mobile informed that its foreign ownership had been reduced to 20 per cent.
“From the aspect of ownership, be it foreign or local shareholding, (this) does not violate conditions for the decision made,” he said during the Ministers’ Question Time in the Dewan Rakyat today.
He said the government, through the MCMC, carried out thorough selection and considered both technical and commercial aspects to identify the MNO tasked with rolling out the country’s second 5G network.
“This includes contributions to Universal Service Provision projects, such as Jendela Phase One and the 4G upgrade project, which align with the MCMC’s commitment to improving user experience and service quality,” he added.
He assured regulatory commitments had been established to ensure compliance with required standards, and said the MCMC would monitor them closely.
Any non-compliance would result in regulatory and enforcement actions.
“The general foreign equity holding limit for individual Network Facility Provider and Network Service Provider licence is 49 per cent, with a minimum of 30 per cent Bumiputera ownership.
“This requirement is stipulated through special licence conditions. Currently, foreign equity in U Mobile remains within the compliance scope set by the conditions of its licence,” he added.
On November 1, the MCMC in a statement announced the selection of U Mobile as a second 5G network service provider, whereby the company would be allowed to collaborate with other ecosystem partners subject to MCMC’s approval.
Fahmi also noted that U Mobile had committed, in a media statement issued on November 2, to reduce foreign ownership to 20 per cent to ensure greater control by Malaysians and encourage participation from local investors.
He was responding to a question from Hassan Abdul Karim (PH-Pasir Gudang) about the rationale behind the federal government’s decision to grant a licence to U Mobile to implement the second 5G network, considering that 48.28 per cent of the company’s equity is held by Singapore-based Straits Mobile Investment Pte Ltd.
In response to a follow-up question from Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor) about U Mobile’s representation on the board of Digital Nasional Bhd (DNB), Fahmi said that as part of the conditions, MNOs are required to hold shares in DNB.
“This shareholding will also entitle them to board seats. In terms of governance, there is no issue with the shareholding structure or corporate governance in this regard,” he said.
— Bernama
