Malaysia’s telecom industry is moving into the next phase of its bid to roll out 5G, with Maxis and U Mobile now considering ways to share infrastructure to boost the country’s connectivity.
The proposed collaboration may impact the deployment of networks, the use of spectrum and regulatory supervision as per the Malaysian Communications and Multimedia Commission (MCMC).
The Malaysia Dual 5G Network framework is designed to provide more competition while ensuring coverage and infrastructure investments are efficient.
Malaysia Dual 5G Network Expands Through Maxis-U Mobile Talks
There is a discussion between Maxis and U Mobile on collaborating with the 5G network in Malaysia’s second wholesale network. The deal could include using infrastructure and commercial access, The Edge Malaysia reported. But the final agreement and the implications for regulators will be based on the structure approved by relevant authorities.
How MCMC Spectrum Rules Affect the Proposed Partnership
The Malaysian Communications and Multimedia Commission (MCMC) regulates the utilization of the spectrum, licensing of telecommunications, and network compliance. Shared radio infrastructure arrangements have to be carried out under the relevant radio authorisations. The transfer of spectrum rights between network operators does not happen automatically under a commercial network-sharing agreement.
Maxis-U Mobile Merger Could Reshape 5G Competition
On 2 November, reports surfaced that Maxis and U Mobile are once again talking about a merger, but no formal deal has been announced. U Mobile runs the second 5G network while Maxis has a stake in Digital Nasional Berhad. Overlapping ownership and competition could necessitate regulatory review of any merger.
What the Proposed Deal Means for Malaysian Consumers
The benefits of a merger would be increased efficiency of investments and better coordination of the networks; the disadvantages would be less competition in prices and consumer choice for mobile services. Previously, MCMC had attached conditions to the merger of Celcom-Digi, such as the spectrum related remedies. If it’s a future regulatory assessment, then similar requirements would apply to Maxis and U Mobile.
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