U Mobile sells entire stake in DNB, pushes own 5G network plans

Malaysian mobile operator U Mobile has sold its entire stake in the country’s Digital Nasional Bhd (DNB) 5G network.

In an announcement this week, U Mobile said it has divested its 100,000 shares in the shared 5G network for RM100,000 (US$23,113) to fellow shareholders CelcomDigi, Maxis, YTL, and the Ministry of Finance (MOF).

The sale is part of U Mobile’s plans to build Malaysia’s second 5G network.

CelcomDigi, Maxis, and YTL will each take 33,333 shares, while the MOF will take the remaining one share at the same price, according to stock exchange filings this week.

This week, the carrier reiterated its plans to cover 80 percent of Malaysia’s populated areas within 12 months of launching.

U Mobile is looking to build Malaysia’s second 5G network, rivaling the first built by DNB under the country’s previous government.

Earlier this year, U Mobile chairman Tan Sri Vincent Tan Chee Yioun outlined plans to complete the 5G network rollout by mid-2026. He noted at the time that the company would not need any additional backing from the government or new partners.

U Mobile has selected Chinese vendors Huawei and ZTE as network technology partners for its 5G network, a stark contrast to DNB, which opted for Ericsson.

Launched in 2021, DNB has seen its network heavily scrutinized by Prime Minister Ibrahim’s administration over claims of transparency issues. This led Ibrahim’s administration to review DNB’s plan for a state-owned 5G network, with DNB quite clear that it was to be the only 5G network in the country.

After U Mobile’s exit this week, CelcomDigi, Maxis, and YTL have grown their ownership in the DNB to 19.44 percent each, meaning they collectively own 58.32 percent of the wholesale 5G network.

Meanwhile, the MOF has increased its stake from 34.88 percent to 41.67 percent following U Mobile’s exit.

Another carrier, Telekom Malaysia (TM), was previously a stakeholder in DNB, but saw its equity cut last year.