THE MERGER BETWEEN CELCOM AND DIGI - WHAT IS THE EFFECT ON UMOBILE? WHAT'S THE FUSS? - Personal Opinion - Nik Zafri

(Disclaimer : This is only my personal opinion and I am not representing any of the Telcos mentioned below - Please refer to the legit sources)

The merger of CelcomDigi may have impacted U Mobile in a few ways.

Firstly, CelcomDigi has emerged as a major competitor, holding a dominant market position in Malaysia with an estimated 50% revenue share. U Mobile, in comparison, holds about 13% of the market, making it the third-largest player behind Maxis and the newly formed CelcomDigi.

However, the merger has also opened opportunities for collaboration. U Mobile and CelcomDigi have engaged in infrastructure-sharing initiatives, such as sharing 4G sites across Malaysia, which helps both companies expand their network coverage while controlling costs. Additionally, U Mobile has continued to compete in the 5G space, having secured the rights to be one of the providers of Malaysia's second 5G network, which promotes competition and offers alternatives to CelcomDigi’s 5G offerings​

The recent news about the government not being able to revise U Mobile's 5G license relates to the broader regulatory environment and the ongoing development of the country’s dual 5G network.

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As of now, U Mobile has been selected as the second 5G network provider in Malaysia. This decision was based on several factors, including U Mobile's business and technical capabilities, as well as its contributions to previous telecommunications projects. The government’s stance suggests that the selection process for 5G licenses is largely settled, with U Mobile being confirmed as a major player in the country's 5G rollout.

However, U Mobile faces challenges, including the need for a strong financial partner to successfully deploy the second 5G network. Despite its smaller size compared to other providers like CelcomDigi and Maxis, U Mobile has expressed confidence in its ability to manage the 5G rollout independently if necessary. This confidence comes from its history of rapid network expansion and commitment to delivering competitive digital services in Malaysia.

U Mobile should also look on strategic partnerships and maintaining compliance with regulatory requirements. This includes aligning its shareholding structure to adhere to local guidelines, especially regarding foreign ownership limits. These steps are crucial to securing its position in the competitive 5G landscape and ensuring a smooth deployment of the second 5G network​