Malaysia’s U Mobile signs MoU’s with Huawei and ZTE for 5G network rollout

Malaysia’s second 5G network operator, U Mobile Sdn Bhd has signed separate memorandum of understandings (MoU’s) with Chinese technology leaders Huawei Technologies Co Ltd and ZTE Corporation to facilitate the implementation of Malaysia’s second 5G network. U Mobile has invested over RM8 billion in its network and technological infrastructure, with over 10,000 network sites. DNB, the country’s first wholesale 5G network, selected Ericsson as its network equipment provider.

U Mobile chairman Tan Sri Vincent Tan said Huawei will be responsible for deploying the 5G network in Peninsular Malaysia, while ZTE will manage the rollout in Sabah and Sarawak. “We are pleased to formalize our vendor agreements with Huawei and ZTE, two of the world’s leading 5G technology providers. The vendor selection process was conducted in a transparent manner to ensure we chose the most suitable technology partners to support our ambitious goals,” Tan said in his speech at the signing ceremony in Putrajaya. “Huawei and ZTE are no strangers to U Mobile. Having been our long-term infrastructure partners, they have a proven global deployment track record, hence, we are looking forward to pivoting our business together,” Tan added.

U Mobile chief technology officer Woon Ooi Yuen said the selection process began last year with invitations to tender issued to network equipment and software providers from various regions. “Ultimately, only two Chinese companies responded to our 5G tender and we are delighted to work with Huawei and ZTE on this significant endeavor. Apart from their global technology track record, they have also shared vision for an efficient and rapid rollout,” Woon said.

From left: Huawei M’sia CEO Simon Sun, Huawei president of Apac Terry He, U Mobile CEO Wong Heang Tuck and chairman Tan Sri Vincent Tan, Communications Ministry Deputy SecGen (Telecommunications Infrastructure) Mano Verabathran, Communications Minister Datuk Fahmi Fadzil, China’s Industry & IT Ministry Party Secretary Li Lecheng, Chinese Ambassador to M’sia Ouyang Yujing, U Mobile deputy CEO Kenneth Chang, ZTE vice president of marketing & solutions for Asia & CIS region Bai Yang, and ZTE Malaysia Managing Director Steven Ge.

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U Mobile chief executive officer Wong Heang Tuck said the company is targeting to achieve 80% 5G network penetration within 12 months of its rollout, which is scheduled to begin in the second half of this year (2H25). He said the goal is expected to be achievable through the appointment of Huawei and ZTE as strategic technology partners for the implementation of next-generation 5G networks in the country.

“Huawei and ZTE will play a key role in helping U Mobile meet its network expansion targets. We aim to achieve 80% coverage in populated areas within the first 12 months of rollout and subsequently reach 90% coverage in the following 12 months,” he said during the press conference.

Wong said this move aligns with U Mobile’s overall strategy to accelerate the adoption of 5G and 5G-A technologies in Malaysia, with a strong emphasis on supporting the enterprise sector. The signing with Huawei today was witnessed by Communications Minister Datuk Fahmi Fadzil, Tan, party secretary of China’s Ministry of Industry and Information Technology Li Lecheng and Huawei Asia Pacific president Terry He. U Mobile reaffirmed that it remains committed to going for a public listing, though it cautioned that timing would depend on global market conditions which are in an “upheaval state today,” Wong said.

The separate MOU with ZTE was approved by U Mobile’s Fahmi, Li Lecheng, Tan and Bai Yang, ZTE’s vice president of marketing and solutions for the Asia and CIS Region. Separately, the ZTE Privacy Protection White Paper (2025) was released today. The White Paper offers a systematic and comprehensive overview of the company’s achievements in privacy compliance, spanning privacy protection policy, framework, co-building, and practical implementation.

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Backgrounder:

The Malaysian government announced its dual 5G network model in May 2023 to ensure competition, better quality of service and wider coverage, especially in underserved and remote areas. It committed to allowing the construction of a second wholesale network once the DNB network reached 80% coverage. U Mobile was appointed by the government to deploy the second 5G network in November 2024, winning out over larger and more established telco rivals such as CelcomDigi and Maxis. Industry observers considered this a controversial choice. U Mobile is the smallest operator in Malaysia, raising questions about its ability to build a 5G network to rival DNB’s.

The Malaysian Communications and Multimedia Commission (MCMC) issued the official letter of award to U Mobile more than two weeks ago, paving the way for the construction of the country’s second 5G network.

The choice of the Chinese vendors was somewhat controversial in light of Western sanctions against them. In September 2023, Prime Minister Anwar Ibrahim sparked controversy when he said that the decision to allow a second wholesale 5G network would allow for “more effective participation by Huawei.” Ibrahim argued the construction of a second 5G network was made so that Malaysia could benefit from different technologies. “We in Malaysia, and I believe rightly, decided that while we get the best from the West, we also should benefit the best from the East,” he said.

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U Mobile’s other MoU:

Last week, U Mobile announced that it has signed a memorandum of understanding with EdgePoint Infrastructure to become one of its preferred partners for 5G in-building communications (IBC) infrastructure. U Mobile will leverage EdgePoint’s expertise for its 5G IBC infrastructure rollout, with plans to collaborate on 5G IBC innovations Both parties will also seek to achieve the most cost-effective rapid rollout through a competitive commercial offer.

References:

U Mobile picks Chinese giants Huawei, ZTE for 5G network rollout

U Mobile to roll out 5G network with Huawei, ZTE; sees ‘similar’ rates to DNB

U Mobile collaborates with Huawei, ZTE for 5G infrastructure rollout

U Mobile picks Huawei and ZTE to deploy Malaysia’s second 5G network

ZTE spearheads Malaysia’s 5G revolution with “Unfolding the Intelligent Future 2024” event, securing the Fastest 5G-A Live Trial award from Malaysia Books of Records

U Mobile Names EdgePoint as a Preferred 5G IBC Infrastructure Partner for Its Upcoming 5G Rollout

ZTE releases the privacy protection white paper, empowering the digital economy and leading ecosystem co-building