U Mobile Sdn Bhd was appointed as Malaysia’s second 5G network provider through a tender process that was overseen by the Malaysian Communications and Multimedia Commission (MCMC), says Communications Minister Fahmi Fadzil.
U Mobile’s appointment was also decided by MCMC as an independent body through the tender process, added Fahmi.
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U Mobile’s appointment was also decided by MCMC as an independent body through the tender process, added Fahmi.
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NewsTranscript
00:30Mobile is held by a foreign company from Singapore, namely Strait Mobile Investment Private Limited.
00:40Is the government's decision not in line with the principles of the contract approval?
00:48Honourable Minister of Communications, please answer.
00:52Thank you, Mr. President. Thank you, my friend, Mr. Kudang.
00:56Mr. President, before I start, I would like to admit that I misused the word in the question.
01:04But the first thing I said was license. The second word is contract.
01:10I would like to clarify that what has been announced by MCMC is not a license,
01:15not a license provider, but a spectrum provider.
01:19And it is not a contract that does not involve public funds,
01:23which does not involve public funds for the second 5G network.
01:27Honourable Minister, the government, through the Ministry of Communications and Multimedia Malaysia or MCMC,
01:33has implemented a detailed process from the technical and commercial aspects
01:37to choose the operator of the Mudah Aleh network or Mobile Network Operator, MNO,
01:42which will implement Malaysia's second 5G network.
01:46This choice has been made through the Beauty Contest process,
01:50or in simple terms, through the tender process,
01:54and not directly or indirectly.
01:58The choice of the operator of the second 5G network is based on several factors,
02:04such as the business and technical plan that has been presented,
02:09the record of customer complaints and satisfaction,
02:12as well as the performance of these companies in implementing other infrastructure initiatives.
02:18This includes the contribution factor to the global service provision project, or USP,
02:23such as phase 1 windows, and the 4G escalation project,
02:28which is in line with MCMC's commitment to improve user experience and service efficiency.
02:35For this selection, commitment-to-commitment control has been established
02:39to ensure compliance with the established standards.
02:43MCMC will monitor this commitment closely
02:46and will not control and enforce it against any inconsistencies.
02:52The need for foreign equity holdings for individual license holders of network facilities, or NFPs,
02:58and individual license holders of network services, or NSPs, is a maximum of 49%,
03:05while the holdings of Putra land is at least 30%.
03:09This need is established through a special license requirement for an individual license holder.
03:18Currently, the holdings of foreign equity in UMobile
03:21are still within the scope of the special license requirements issued to UMobile.
03:26This is different from the NFP license that Mr. Gudang mentioned earlier.
03:33Spectrum regulation is not this license.
03:38UMobile has also made a commitment in the media statement issued on 2 November
03:43to reduce foreign holdings by 20%
03:46to ensure greater control by Malaysians and invite participation from local investors.
03:53Therefore, the decision to choose UMobile as the provider of Malaysia's second 5G network
03:59is not contrary to the special license requirements for an individual license holder.
04:05UMobile is also committed to implement Malaysia's second 5G network
04:09by collaborating with various stakeholders, including other telecommunications companies,
04:14to provide worldwide 5G services to users.
04:17UMobile is allowed to collaborate with other MNOs
04:21to benefit each other's strengths in the implementation of the second 5G network
04:26related to MCMC qualification.
04:29For your information, UMobile has a record of performance for more than 17 years
04:33and is in a good position for the implementation of Malaysia's second 5G network
04:37and has been named as the best easy-to-use service company in Malaysia
04:41by Frost & Sullivan six times.
04:44Your Honour, MCMC as a free body has made a fair assessment
04:52through the tender process that has been carried out.
04:55This decision must be respected by all parties
04:57because the implementation of this second 5G network
05:01has been carried out based on good management
05:04and not by direct award.
05:09MCMC will continue to monitor the progress of the implementation of Malaysia's second 5G network
05:13by UMobile
05:14to ensure full compliance with all regulatory requirements
05:18as stipulated in the Communication and Multimedia Act 1998.
05:23That's all. Thank you.
05:24Your Honour, Mr. Kudan, additional questions.
05:27Thank you, Mr. Prime Minister, for your long answer.
05:33Some of your answers can still be discussed
05:38and some of them can still be discussed.
05:41Mr. Speaker, the additional question for Mr. Kudan is
05:46whether the choice of UMobile
05:50as the provider of the second 5G network
05:54takes into account the factors of individuals
06:00who have shares in UMobile.
06:07Your Honour, Mr. Prime Minister.
06:10Thank you, Mr. Speaker. Thank you, Your Honour, Mr. Kudan.
06:14So, regarding the issue of handling,
06:17as I said in my answer,
06:19MCMC is a free body
06:23and ministers are not involved in this assessment process.
06:30So, they have investigated and ensured that
06:34the issue of shareholding, as I said earlier,
06:38which is no more than 49% of foreign holders,
06:41has been fulfilled.
06:45And UMobile has also informed that
06:49foreign holders will be reduced to 20%.
06:52So, from the aspect of handling,
06:55whether foreign or local holders,
06:59it does not violate issues or conditions
07:04for the decision that has been made.