U Mobile is pushing ahead with its own 5G network rollout and it’s turning to Telekom Malaysia (TM) to expedite deployment. The orange telco has appointed TM as its key fibre backhaul partner, leveraging the national operator’s extensive fibre infrastructure to support its next gen 5G deployment across Malaysia.
The 10-year agreement is valued at RM2.4 billion and was formalised at a signing ceremony held on 26 May 2025 at Sofitel Kuala Lumpur Damansara. The ceremony was witnessed by Communications Minister Datuk Fahmi Fadzil.
As part of the deal, TM will provide U Mobile with a comprehensive suite of backhaul services which include:
- Leased fibre line access to U Mobile’s 5G Radio Access Network (RAN)
- Data centre and TM Edge Facility leasing for Points of Interconnect (POIs)
- Trunk line connectivity for inter-regional data transport
According to U Mobile, the partnership will enable faster and more efficient rollout by tapping into TM’s 740,000km fibre footprint, the widest in Malaysia. They added that the strategic partnership will allow U Mobile to tap into TM’s comprehensive 5G Mobile Backhaul Service to ensure high network performance and reliable connectivity for both enterprises and consumers.
Having an extensive and reliable fibre backhaul partner is crucial for U Mobile as the orange telco aims to deploy a 5G Standalone (5G SA) network from Day 1 with 5G-Advanced capability and network slicing.
U Mobile CEO Wong Heang Tuck said, “U Mobile is pleased to have TM as our fibre backhaul partner as their coverage is the widest in Malaysia, enabling us to further accelerate our 5G coverage deployment. Together with TM and other partners, we are committed to reaching 80% coverage of populated areas within 12 months, while ensuring a superior 5G experience that is highly reliable, supports massive capacity and delivers ultra-fast speeds to benefit enterprises and consumers across Malaysia.”
Meanwhile, TM Group CEO Amar Huzaimi Md Deris said, “TM is proud to support U Mobile’s 5G network with high-capacity fibre backhaul — the essential backbone of a resilient and high-performance 5G ecosystem. This collaboration underscores our commitment to building inclusive, future-ready infrastructure that fuels innovation, enhances connectivity, and drives digital progress across the nation. This is central to TM’s role as the enabler of a Digital Malaysia — a cornerstone in our aspiration to become a Digital Powerhouse by 2030.”
In an earlier announcement, U Mobile confirmed that it aims to achieve 80% 5G population coverage by the second half of 2026. This follows the government’s award to U Mobile to roll out Malaysia’s second 5G network which will compete with Digital Nasional Berhad. During the transition, U Mobile customers can still get access to 5G with its existing access agreement with DNB.
A few weeks ago, U Mobile has started disposing its entire 100,000 shares in DNB for RM100,000. The 3 remaining telcos – CelcomDigi, Maxis and YTL will acquire 33,333 shares each, while MoF Inc will take the remaining 1 share.
It was also mentioned that MoF Inc shall exercise the Put Option to sell its ordinary shares to transfer its shareholding advance in DNB within a month after 12 November 2025. From the looks of it, MoF could dispose its shareholding by end of this year, turning DNB into a fully private-led 5G network managed by CelcomDigi, Maxis and YTL.
