KUALA LUMPUR: Straits Mobile Investment Pte Ltd has agreed to reduce its stake in U Mobile to 20 per cent, thereby increasing the mobile operator's Malaysian ownership.
The Singapore-based company, a wholly owned unit of ST Telemedia, had a 48.3 per cent stake in U Mobile.
Other shareholders of U Mobile are Magnum Bhd, with a 7.8 per cent stake; Singer (Malaysia) Sdn Bhd, with a 6.1 per cent and U Telemedia Sdn Bhd, with a 5.6 per cent.
In a statement, U Mobile said it is ready to spearhead the second 5G network in line with national priorities by strengthening local engagement and participation in critical telecommunications infrastructure.
"While foreign ownership is common in the telecommunication (telco) sector, U Mobile's strategy prioritises Malaysian industry development and strengthening of local ownership," it said.
U Mobile said it is confident that it will be able to deliver a rapid and cost-efficient 5G rollout for Malaysia.
The telco noted it has been an industry champion of affordability by offering products and services that are of similar or better specifications but at a 20 to 25 per cent reduction below competitor prices.
Being the most recent entrant and market challenger to the industry, U Mobile's subscriber base reached nine million customers at the end of 2023.
"With more than RM5 billion invested in its network infrastructure, U Mobile currently has over 10,000 network sites, and its national population U Mobile's coverage stands at 95 per cent, on par with its industry peers, supported by a staff strength of over 1,000 Malaysian employees.
"The Single Wholesale Network (SWN) model was introduced in 2021, designated by Digital Nasional Berhad (DNB), a wholly owned unit of the Ministry of Finance, to be the sole operator responsible for managing and providing wholesale 5G network services to all mobile network operators (MNOs).
"By establishing a second network, Malaysia moves away from a monopolistic model towards a comprehensive competitive landscape," the company said.
The telco said it has achieved consistent growth, with its EBITDA turning positive since 2017, with a track record of strong operating cash flow.
"U Mobile, with its shareholders and vendor partners, has successfully completed its national 3G and 4G network rollouts and is committed to investing in the 5G deployment, using private sector funding only."
It added that it will continue to innovate products and services whilst actively deploying the second 5G network.
"We would like to assure all stakeholders that it will continue to be well supported with no reliance on government funding."