U Mobile has appointed Celcom Timur Sabah (CT Sabah) to deploy 5G leased circuits in Sabah and Labuan. Both providers have recently signed a Term Sheet agreement to kick start collaboration to enable U Mobile to accelerate its upcoming 5G network rollout.
Upon the finalisation of the Definitive Agreement, U Mobile will be able to tap on CT Sabah’s fibre infrastructure in the northern region of Borneo. The Definite Agreement is expected to be finalised by Q3 2025.
Under the agreement, CT Sabah will upgrade its existing 4G leased circuit sites to 5G and develop new additional leased circuit sites to meet U Mobile’s requirement to deploy the second 5G network. U Mobile is set to benefit from CT Sabah’s extensive fibre network which spans over 10,000km across Sabah and Labuan, which would ensure strong, stable and high-capacity connectivity for both consumers and enterprises in the region.
Commenting on the appointment, U Mobile CTO Woon Ooi Yuen said, “U Mobile is delighted to appoint CT Sabah as our fibre leasing partner in Sabah and WP Labuan in light of our upcoming 5G network expansion. We are committed to accelerate 5G coverage nationwide and with CT Sabah onboard, it further strengthens our ability to meet rollout goals and deliver a superior 5G experience that is highly reliable, supports massive capacity and delivers ultra-fast speeds to benefit enterprises and consumers across Malaysia. U Mobile is ready to play an even greater role in narrowing the digital divide, aligning to national ambitions of making Malaysia a high-income digital nation.”
Meanwhile, CT Sabah CEO Zurinah Datuk Hanafiah said, “CT Sabah is committed to advancing digital connectivity in Sabah ad WP Labuan, and we view the 5G rollout as a critical step toward unlocking new opportunities for the region. This initiative will help digital transformation, drive economic growth, and improve the quality of life for communities. Our partnership with U Mobile is a key enabler in this effort, and we are proud to support their 5G expansion by delivering robust and reliable fibre infrastructure.”
To recap, U Mobile has been appointed as the telco to carry out the deployment of Malaysia’s second 5G network, which will compete with Digital Nasional Berhad (DNB). After receiving its letter of award from the Malaysian Communications and Multimedia Commission (MCMC), U Mobile has appointed Huawei and ZTE as their 5G technology partner to rollout its 5G network. U Mobile has divided its 5G rollout into two zones with Huawei handling West Malaysia, while ZTE taking East Malaysia.
U Mobile aims to achieve 80% 5G population coverage within the first year of deployment, and to cover 90% in the following year.