By Nabiha Safian
KUALA LUMPUR: U Mobile Sdn Bhd has partnered with Telekom Malaysia Bhd (TM) to enhance the rollout of its Next Generation 5G network nationwide, in a deal valued at RM2.4 billion.
Under this 10-year agreement, TM will provide U Mobile with leased fibre connectivity backhaul services.
U Mobile chief executive officer (CEO) Wong Heang Tuck said the partnership further accelerate its 5G coverage deployment by utilising TM's expansive fibre network.
"TM's network is the widest in Malaysia and we are committed to reaching 80 per cent coverage of populated areas within 12 months," Wong said in a statement.
He said the agreement includes access to TM's infrastructure, such as the 5G radio access network, data centres, TM Edge facilities and trunk leased lines for regional connectivity.
TM's fibre footprint spans more than 740,000 kilometres, providing what is described as the broadest backhaul coverage in the country.
This collaboration underscores the central role of TM as the enabler of a Digital Malaysia, in line with the national aspiration to become a Digital Powerhouse by 2030, said its group CEO Amar Huzaimi Md Deris.
"TM is proud to support U Mobile's 5G network with high-capacity fibre backhaul, which is the essential backbone of a resilient and high-performance 5G ecosystem across the nation," Amar said.
The deal was formalised at a signing ceremony in Kuala Lumpur, witnessed by Communications Minister Datuk Fahmi Fadzil.
Speaking after the event, Fahmi said the agreement would ultimately deliver tangible benefits for consumers, particularly in terms of affordability and service quality.
"We have certain mechanisms in the Malaysian Communications and Multimedia Commission in place to monitor and regulate prices.
"A key tool is the mandatory standards on access pricing (MSAP), which is something we apply to major infrastructure providers such as TM, and review every 2–3 years," he added.
Fahmi also highlighted that MSAP serves as a safeguard to keep service prices competitive and ensure telecom operators do not pass on excessive costs to consumers.
"I believe that by leveraging on TM's extensive fibre backhaul network, it will help to keep costs manageable," he added.