CelcomDigi considering viable options after losing out on Malaysia's second 5G network

• Decision has no impact on its 5G customers, will continue delivering services
• Contends it would have been best choice to speedily & affordably deliver network

In a statement issued today in reaction to the Malaysian government’s announcement on 1 Nov, that it has selected U Mobile Sdn Bhd to operate Malaysia’s second 5G network, CelcomDigi, the largest telco in the country with 20.2 million subscribers, reiterated its view that it had presented a compelling technical and commercial proposal to build the second 5G network leveraging on its financial standing and track record of investing in and deploying large-scale mobile networks, and delivering high-quality services to the rakyat.

“This includes the ability to commence nationwide rollout almost immediately after spectrum award, to build a 5G network that will match the population coverage of our 4G and 4G+ network within the shortest time possible,” it said.

In a recent interview with business publication The Edge, before Friday's decision by the government, Idham Nawawi, CelcomDigi’s CEO, made the case that the telco was best equipped among the parties that bid for the second 5G network to quickly and at a more cost-efficient rate, roll out its 5G network for the benefit of the rakyat.

Idham pointed out that post the merger between Celcom and Digi in 2021, the merged entity had made rapid progress to consolidate its combined network from 21,000 towers to 18,000 towers that could be converted to be 5G ready within two years with additional and software upgrades. 

Looking forward now, the telco reiterated that the priority remains to ensure its customers have affordable access to a competitive and efficient 5G network. “We will discuss with various stakeholders to consider several viable options ahead of us, to the benefit of our customers and shareholders.”

CelcomDigi will continue to focus on merger integration to realise savings and synergy targets with network integration ahead of target. At 68% complete, it said 65% of customers have benefited from improved experience on the new intelligent network.

Stressing that the announcement will have no impact on CelcomDigi’s 5G customers, it vowed to continue delivering the best choice and value in connectivity services and the best customer experience for Malaysian consumers and enterprises in support of the nation’s transformation into a 5G-AI powered digital society.

With the country’s 5G drama finally over – it went from a world leading Single Wholesale Network (SWN) approach that would have had all telcos competing on purely service delivery and marketing, to giving in not just to industry lobbying post its SWN decision, but royalty lobbying as well, and opting for a Dual Wholesale Network approach, attention now moves on.

As the owner and operator of the second 5G network, U Mobile will be partnering with other telcos to build the second network. Those that partner with U Mobile and happen to be Digital Nasional Bhd (DNB) shareholders, as U Mobile is, will have to exit (DNB) selling their stakes back to it. U Mobile has mentioned CelcomDigi (a shareholder in DNB) and Telekom Malaysia Bhd (not a shareholder in DNB) as those it will be approaching to partner.

No mention was made of Maxis Bhd (a shareholder in DNB), which in August was speculated to be interested in acquiring U Mobile, should it successfully win the bid for the second 5G network.