THE government’s decision to appoint U Mobile as the second operator of Malaysia’s 5G network last week has come under scrutiny.
According to reports in the New Straits Times, CIMB Securities in its note today said the Malaysian Communications and Multimedia Commission's (MCMC) decision came as a surprise to the firm and the market.
"Maxis or CDB (to a lesser degree) were widely expected to win, being the two largest MNOs in Malaysia (in terms of subscribers and earnings, with relatively stronger balance sheets)," it said.
In a statement yesterday, Maxis said it will engage with the MCMC to understand the rationale for the decision and consider its options after discussions with all stakeholders.
Maxis emphasised they are a homegrown Malaysian company led by Malaysians and principally owned by Malaysians with 77% of its shares owned by Malaysians.
Maybank Investment Bank Bhd (Maybank IB) believes that U Mobile is unlikely to independently deploy a 5G network and will likely seek a partnership with either CelcomDigi Bhd or Maxis Bhd.
Current shareholders in U Mobile include Singapore-based Straits Mobile Investments Pte Ltd with a 48.3% stake.
The Malaysian investors are, His Majesty Sultan Ibrahim, the King of Malaysia, with 22.3%; Magnum Bhd with 7.8%; Singer (Malaysia) Sdn Bhd with 6.1% and U Telemedia Sdn Bhd, owned by Malaysian tycoon Tan Sri Vincent Tan, at 5.6%.
Industry experts were also reported as asking the government to spell out why it had chosen U Mobile. - Nov 3, 2024
