The commission maintained that U Mobile was chosen following a stringent selection process which evaluated the various bidders’ ability to implement the second network.
“U Mobile’s selection was based on a combination of several factors, such as the business and technical planning submitted, its complaints and customer satisfaction record, as well as its performance in implementing other infrastructure initiatives.
“This includes its contribution to projects like phase one of the National Digital Network Plan (Jendela) and 4G upgrade projects,” it said in a statement.
MCMC said it would ensure U Mobile, which has tycoon Vincent Tan as its chairman, would be closely supervised as it implements the second 5G network, adding that the telco would face fines for any non-compliance in the project.
It reiterated that U Mobile could work with other mobile network operators in the project, subject to its approval, adding that the commission would evaluate such partnerships.
“MCMC acknowledges the current foreign shareholding in U Mobile. It is the responsibility of licence holders to inform MCMC of any changes in the company’s shareholding.”
Among U Mobile’s major shareholders are ST Telemedia of Singapore, which is backed by the Singapore government’s investment vehicle Temasek Holdings.
In July, Tan was reported to have told Bloomberg that a takeover offer from Maxis had been rejected and that a public listing for U Mobile, valued by its owners at RM10 billion, was being contemplated.
Maxis, ranked as the country’s second-largest mobile operator and controlled by billionaire T Ananda Krishnan, had been reported to be in the driving seat to lead the rollout of the second 5G network.
Maxis has since said it would hold talks with MCMC to “understand the rationale” of choosing U Mobile instead.
The company said its 5G network, with enhanced capabilities, would have taken far less time and resources to cover the same percentage of populated areas as the first 5G network, and would also be able to provide 5G coverage inside buildings in these areas.
Malaysia’s leading network operator, CelcomDigi, has also said it would have been able to begin a rollout almost immediately to build a 5G network that would match the coverage of its existing network.