At the end of last week, MCMC made a surprise by choosing U Mobile to develop the country's Second 5G Network, over CelcomDigi or Maxis. As many are aware, U Mobile is a smaller telecommunications company than others. CIMB Securities analysts said the MCMM's decision to choose U Mobile was unexpected, with the names of Maxis and CelcomDigi initially expected to win the licensing for the development of the country's Second 5G Network.
This is because, U Mobile has a lower number of users compared to Maxis and CelcomDigi, in addition to the financial position that is not as strong as the two telecommunication companies. CIMB Securities targets the development of the Second National 5G Network will require an investment of between RM2 billion to RM3 billion for a period of up to the next 24 months to reach 80% of populated areas, in addition to an investment of RM1 billion per year for each subsequent year.
In addition, BIMB Securities aims that this move will enable U Mobile to raise funds through an IPO listing, in addition to further strengthening their position in the telecommunications arena. Previously, it was said that U Mobile will do an IPO listing around 2025.