U Mobile has chosen Huawei Technologies and ZTE Corporation as partners for the deployment of Malaysia’s next-generation 5G network using a dual network model.

U Mobile chairman Vincent Tan said that Huawei will oversee deployment in West Malaysia, while ZTE will manage operations in East Malaysia.

The company aims for 80% coverage of populated areas within 12 months, increasing to 90% in the following year.

Regarding pricing, U Mobile’s wholesale rates would be similar to those of the current 5G operator, Digital Nasional Berhad (DNB), which charges RM30,000 (US$6,300) per gigabit per second per month.

🔗 Source: The Edge Malaysia

🧠 Food for thought

1️⃣ Malaysia’s embracing of Chinese vendors contrasts with Western security stance

U Mobile’s selection of Huawei and ZTE places Malaysia among countries taking a different approach than Western nations that have restricted these vendors over security concerns.

Despite Huawei being banned from 5G networks in all Five Eyes intelligence alliance nations (US, UK, Canada, Australia, New Zealand) due to potential backdoor security risks, the company has maintained a strong global presence, securing contracts in over 90 countries versus just 8 that have fully banned its equipment 1.

The security concerns stem from China’s legal framework, specifically the 2017 National Intelligence Law and 2014 Counter-Espionage Law, which can compel Chinese companies to assist in state intelligence operations 2.

This dual-vendor strategy for different regions (Huawei in West Malaysia, ZTE in East Malaysia) reflects a pragmatic approach that prioritizes technological advancement and existing vendor relationships over the security concerns that have dominated Western discourse.

2️⃣ Strategic investment amid intensifying global 5G competition

U Mobile’s multi-billion ringgit investment highlights the substantial financial commitment required to deploy competitive 5G networks in today’s market.

Huawei’s market dominance stems from its aggressive pricing strategy and substantial R&D investments, having begun 5G development as early as 2009 and secured 3,325 5G patents by early 2020, more than any competitor 3.

The company’s competitive edge has been enhanced by receiving up to $30 billion in financing from the China Development Bank, allowing it to offer favorable terms to telecom operators 3.

By 2020, Huawei had captured 29% of the global telecom equipment market, significantly ahead of competitors like Nokia (17%) and Ericsson (13%), demonstrating how state support has helped Chinese vendors gain substantial market share 3.

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