KUALA LUMPUR: The Malaysian Communications and Multimedia Commission (MCMC) says U Mobile Sdn Bhd's selection to deploy the second 5G network is based on various considerations, including the business and technical proposals submitted.
U Mobile's history of customer satisfaction and complaint rates, along with its performance in executing other infrastructure projects, were also key factors in the decision, MCMC added.
"This includes their notable contribution to the Universal Service Provision projects such as Jendela Phase 1 and the 4G upgrading project, which align with MCMC's commitment to enhancing user experience and service excellence," it said today.
MCMC said with the selection, regulatory responsibilities over U Mobile can be enforced according to the established compliance.
"In the event of non-compliance, penalties will be imposed. As the second 5G network provider, U Mobile is allowed to collaborate with other ecosystem partners subject to MCMC's approval.
"MCMC will continuously assess these collaborations to ensure that the benefits can be enjoyed by all Malaysians," it added.
The commission said it is also aware of the current foreign shareholding held by U Mobile.
They added that it is the responsibility of the licensee to notify MCMC of any changes in the company's foreign shareholding.
MCMC first announced last Friday in a four-paragraph statement that it had chosen U Mobile, one of the country's smallest mobile network operators, after "rigorously undertaken processes."
Maxis, one of the two big local operators and one of the losing bidders, said it would seek talks with the MCMC over the decision.
"We will engage with MCMC to understand the rationale for their decision and we will consider our options after discussions with all stakeholders," Maxis said in a statement on Sunday.
U Mobile had said it looked forward to working with CelcomDigi Bhd and Telekom Malaysia Bhd, adding that it had been "engaging with leading global technology providers including Huawei."
It also said it would reduce its foreign ownership to 20 per cent.
Its 48 per cent-controlling shareholder Straits Mobile Investments Ltd is a subsidiary of ST Telemedia, a private company that is owned by Singapore government investment arm Temasek Holdings.
Meanwhile, MCMC said the establishment of the second 5G network paves the way for more flexibility and inclusiveness in future services.
"This development encourages competition and strengthens the industry's resilience, allowing Malaysians to enjoy high-speed connectivity at affordable prices.
"MCMC will continue to monitor the quality standards among all service providers to ensure a strong and reliable telecommunications landscape for the country's future," it added.