U Mobile’s Bold 5G Gamble: Exiting DNB to Build Malaysia’s Second 5G Network

Malaysia’s telecommunications landscape is undergoing a seismic shift as U Mobile, one of the country’s leading telcos, makes a daring strategic pivot. The company recently announced its exit from Digital Nasional Berhad (DNB), Malaysia’s state-owned 5G infrastructure provider, to focus entirely on constructing and operating the nation’s *second* 5G network. This move isn’t just corporate reshuffling—it’s a high-stakes bet on Malaysia’s digital future. With aggressive coverage targets, cost-cutting ambitions, and a fiercely independent rollout plan, U Mobile is positioning itself as a disruptor in a market hungry for faster, more affordable connectivity. But will this gamble pay off, or will it leave consumers tangled in rollout delays and patchy coverage?

The Great 5G Shake-Up: Why U Mobile Left DNB

U Mobile’s departure from DNB wasn’t a sudden impulse—it was a calculated chess move in Malaysia’s ongoing 5G saga. DNB, established as a single wholesale network provider, initially aimed to streamline Malaysia’s 5G deployment by centralizing infrastructure. However, critics argued that this monopoly model stifled competition and innovation. U Mobile, sensing an opportunity, decided to break free and go solo.
By divesting its stake in DNB, U Mobile gains full control over its 5G destiny. No more waiting in line for DNB’s infrastructure—now, the company can build its own towers, optimize coverage, and tailor services to its customer base. This independence comes with risks, though. Constructing a nationwide 5G network from scratch is a colossal undertaking, requiring billions in investment and meticulous execution. But U Mobile seems undaunted, setting an audacious goal: 80% coverage of populated areas within the first year, scaling up to 90% by Year Two. If achieved, this would outpace DNB’s current footprint, which stands at just 38% population coverage—a sluggish rollout that has frustrated both consumers and rival telcos.

The Price War: Can U Mobile Deliver Cheaper 5G?

One of the biggest promises of U Mobile’s solo venture is cost efficiency. By cutting ties with DNB, the company claims it can slash operational expenses and pass those savings onto consumers. Industry analysts speculate that U Mobile could soon offer the most affordable 5G plans in Malaysia, undercutting rivals like Maxis and CelcomDigi.
But how? For starters, U Mobile won’t be paying DNB’s wholesale access fees—a significant cost burden for telcos still tied to the state-run network. Instead, the company plans to optimize its own infrastructure, leveraging existing 4G towers and strategically deploying new 5G nodes. Additionally, U Mobile has hinted at innovative pricing models, possibly introducing budget-friendly, no-frills 5G packages aimed at cost-conscious users.
However, skeptics warn that building a standalone 5G network isn’t cheap. While U Mobile insists it won’t seek government funding or new partners, some question whether the company has the financial muscle to sustain such an ambitious rollout. If costs spiral, those promised “affordable 5G plans” might remain a pipe dream.

The Race for Coverage: Can U Mobile Outbuild DNB?

DNB’s sluggish 5G expansion has been a major pain point for Malaysia. Despite launching in late 2021, the state-run network still doesn’t cover most rural areas, leaving millions stuck on slower 4G. U Mobile sees this as its golden opportunity.
The company’s 18-month rollout plan is nothing short of aggressive. Unlike DNB, which relied on a centralized approach, U Mobile will focus on high-demand urban zones first, ensuring quick wins in cities like Kuala Lumpur, Penang, and Johor Bahru. From there, it plans to expand into semi-urban and rural regions—areas often neglected by DNB.
But speed comes with risks. Rushing deployment could lead to patchy coverage, dropped signals, or network congestion—issues that plagued early 5G rollouts in other countries. U Mobile must balance speed with reliability, or risk alienating the very customers it hopes to attract.

A New Era for Malaysia’s Telecom Sector

U Mobile’s bold exit from DNB marks a turning point for Malaysia’s 5G future. If successful, the company could reshape the market, forcing competitors to lower prices and accelerate their own rollouts. Consumers stand to benefit from more choices, better coverage, and cheaper plans—a win for digital inclusion.
Yet, challenges loom. U Mobile’s go-it-alone strategy is risky, and any missteps in execution could leave Malaysia with two fragmented 5G networks—one state-run, one private—neither delivering seamless nationwide coverage.
Ultimately, U Mobile’s gamble hinges on execution. If the company hits its targets, it could emerge as Malaysia’s 5G champion, proving that competition, not centralization, drives progress. But if it stumbles, the fallout could delay Malaysia’s digital ambitions for years. One thing’s certain: the race for 5G dominance just got a lot more interesting.