U Mobile Shocks Market Over 5G Win

U Mobile just won Malaysia’s second 5G network, surprising the market. Many expected Maxis or CelcomDigi (CDB) to secure the bid due to their size and financial strength.

The news may cause a dip in Maxis' and CDB’s stock prices, but CIMB Securities sees this as a chance to buy.

To cover the high 5G rollout costs, U Mobile might partner with Maxis or CDB or charge 5G wholesale fees.

If terms aren’t favorable, Maxis and CDB could stay with Digital Nasional Bhd (DNB). This decision shifts Malaysia from a single 5G network to a dual-network model, with telcos soon expected to own and operate both networks commercially, expanding 5G access across the country.