This strategic move comes in the wake of Malaysia’s May 2023 policy announcement to transition from a single wholesale 5G network to a dual network system. The policy aims to foster competition, increase efficiency, and dismantle monopolistic structures in the nation’s telecommunications landscape.
U Mobile, which was awarded the contract to build and operate the second 5G network last month, confirmed on Tuesday that Huawei and ZTE will serve as key infrastructure partners. Huawei will oversee the deployment in Peninsular Malaysia, while ZTE will be responsible for network development in East Malaysia, which includes the states of Sabah and Sarawak. The financial details of the partnership were not disclosed.
Speaking on the selection of the two companies, U Mobile Chairman Vincent Tan cited their “proven global deployment track record” as a major factor in the decision. Both Huawei and ZTE have been instrumental in the rollout of 5G infrastructure in various parts of the world, particularly across Asia, the Middle East, and Africa.
The involvement of Huawei in Malaysia’s 5G ecosystem marks a significant policy shift. Prime Minister Anwar Ibrahim had earlier stated that the inclusion of Eastern technology providers such as Huawei would bring balance to the market, which has been traditionally dominated by Western firms. While several Western countries, including the United States, have expressed security concerns over the use of Huawei equipment, Malaysia has opted for a pragmatic approach focused on accelerating its digital transformation and closing connectivity gaps.
The dual-network initiative is expected to encourage healthy competition, improve service quality, and provide better pricing for consumers and businesses. Industry analysts believe it will also enhance Malaysia’s appeal as a regional tech and investment hub.
As U Mobile moves forward with the rollout, the Malaysian government has reiterated its commitment to ensuring both networks operate independently yet collaboratively to meet national coverage targets and maintain interoperability.
The deployment of the second 5G network is anticipated to significantly boost Malaysia’s digital infrastructure, supporting the country’s ambitions in the areas of smart cities, Internet of Things (IoT), Industry 4.0, and digital inclusion.