In November 2024, the government announced a shift to a 5G dual-network wholesale model, and granted a second 5G wholesale network license to U Mobile, the country’s third-largest mobile network operator. The government’s decision to introduce a second 5G network reflects a strategic effort to increase competition, improve service delivery, and accelerate the nationwide rollout of 5G. Notably, U Mobile has committed to deploying this network independently, with a target completion by mid-2026, positioning itself as a major player in Malaysia’s next-generation connectivity landscape.
OOKLA believes the shift to a dual-network model is expected to bring several advantages to the market. Increased competition between two wholesale providers should lead to better network quality and more competitive pricing for mobile network operators and end consumers. This dual-network setup strengthens resilience in the national network infrastructure by reducing reliance on a single provider. Furthermore, it noted that having two competing 5G networks could drive innovation and encourage more aggressive investment in new technologies and service enhancements that will benefit sectors like healthcare, smart cities, and logistics, all of which are part of Malaysia’s digital transformation agenda.
However, telecommunication analysts reminded that the development does not come without challenges. Deploying a second nationwide 5G network requires significant investment in infrastructure, spectrum management, and network operations. There is a risk of resource duplication and inefficiencies if the two operators do not coordinate their efforts, especially in areas where coverage overlaps.
Additionally, a dual wholesale network could become an issue, potentially slowing the unified growth of the 5G ecosystem. Interoperability between the two networks, as well as integration with existing 4G infrastructure, will also require careful management to ensure seamless service quality for consumers and businesses alike.
