5G: MCMC chose U Mobile on its own, Fahmi says amid shareholder query

PARLIAMENT | Top officials from the Communications Ministry were not involved in the decision to appoint U Mobile as the country's second 5G network operator, said its minister Fahmi Fadzil.

He said this when Hassan Abdul Karim (Harapan-Pasir Gudang) grilled the minister on whether the U Mobile shareholders were a factor in the decision-making.

"Regarding the issue of shareholdings, as I mentioned, the Malaysian Communications and Multimedia Commission (MCMC) independently (chose U Mobile). The minister, deputy minister were not involved in any evaluation process," Fahmi told the Dewan Rakyat today.

The MCMC's decision to appoint U Mobile has come under scrutiny due in part because of its shareholders.

The company's largest shareholder is Singapore's Temasek-linked Straits Mobile Investments Pte Ltd with a 48.3 percent stake.

The company's second-largest shareholder is Sultan Ibrahim Sultan Iskandar - who is the Yang di-Pertuan Agong - with a 22.3 percent stake in the company.

U Mobile had said it would divest its foreign ownership and bring it down to 20 percent.

U Mobile’s track record

Similar to the MCMC's statement on the matter yesterday, Fahmi did not specify why U Mobile's bid was preferred over other competitors.

Instead, he elaborated on the factors considered in the decision, such as the submitted business and technical plans, complaint and customer satisfaction records, and the company's performance in executing other infrastructure initiatives.

“This includes contributions to Universal Service Provision (USP) projects like Jendela Phase 1 and the 4G upgrade project, which align with MCMC’s commitment to improving user experience and service excellence,” Fahmi said.

He further highlighted U Mobile's 17-year track record, adding that it is well-positioned to undertake the country’s second 5G network rollout.

“It has also been recognised as Malaysia’s ‘Best Mobile Service Provider’ by Frost & Sullivan on six occasions,” he concluded.

READ MORE: 'Harapan wouldn't accept MCMC answer on U Mobile if it was in opposition'

Following the decision, mobile operator Maxis announced it would engage with MCMC to understand why its bid had been overlooked.

It was previously reported that the MCMC only stated it had conducted "rigorous processes, including comprehensive deliberations on technical and commercial aspects" when announcing its selection decision.

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