KUALA LUMPUR: Telekom Malaysia Bhd (TM) is eyeing a stronger foothold in mobile services through a three-year 5G wholesale arrangement with U Mobile, as part of the government’s dual-network strategy.
TM Group CEO Amar Huzaimi Md Deris told reporters the partnership provides TM with options to see which network best fits its strategy moving forward.
“Our mobile services remain a key pillar supporting TM’s unified convergent offerings,” he told reporters after presenting the group’s financial results today.
U Mobile, Malaysia’s newest 5G network provider, today signed a three-year 5G wholesale contract with TM, following a structured evaluation process.
The appointment underscores U Mobile’s strong technical capabilities, service expertise, and commitment to delivering high-performance next-generation 5G infrastructure solutions. It also reflects the successful rollout of its 5G network, which is on track to achieve 80% population coverage by the second half of 2026, with deployment currently progressing ahead of schedule.
Under the agreement, U Mobile will deliver end-to-end 5G Multi Operator Core Network services, encompassing comprehensive provisioning, seamless system integration, activation, rigorous testing, and ongoing optimisation. This will enable TM to provide robust, scalable, and high-quality 5G connectivity to its customers.
U Mobile CEO Wong Heang Tuck, in a statement, said the telco was selected after a structured evaluation process, and that the award is a testament to the strength of its next-gen 5G network capabilities.
“We are confident in our ability to deliver superior performance, reliability, robust security and enhanced customer experience to TM, supporting its ambitions to strengthen mobile competitiveness and advance its convergence strategy.
“This award is more than a commercial milestone; it underscores the value of healthy infrastructure competition in driving innovation and building a resilient, sustainable telecommunications ecosystem.
“We are grateful to the government for appointing us as Malaysia’s newest 5G network provider and for the opportunity to realise the intent of a dual network landscape.
“We look forward to working closely with TM to accelerate 5G adoption and create long-term value for the industry and the nation,” Wong said.
Amar Huzaimi said TM’s transition from the current Digital Nasional Bhdmnetwork to the new arrangement would be carried out over a few months and would be seamless for end users.
“We have come up with a plan of migration as required by law. When we issue the notice of termination, we want it to be with no interruption to the end user,” he said, emphasising that service continuity remains a top priority.
On the rationale for choosing U Mobile, he said the decision followed a structured evaluation aligned with TM’s long-term competitive and value objectives.
The tie-up will allow TM to deliver scalable 5G connectivity while advancing its convergence strategy, particularly in integrating mobile with existing fixed broadband, content, and digital services.
Amar Huzaimi noted that the move is strategic rather than speculative, aiming to strengthen TM’s position in Malaysia’s evolving mobile landscape.
In a Bursa Malaysia filing, TM reported a net profit of RM1.71 billion for the financial year ended Dec 31, 2025 (FY25), down 15.1% from RM2.02 billion last year.
The lower net profit reflects the absence of a material one-off tax credit recognised last year, as well as the lower earnings before interest and taxes (Ebit), but this was partially supported by gains from the group’s investment in a technology fund.
Revenue for FY25 rose by 1.4% or RM159.6 million to RM11.87 billion from RM11.71 billion previously, despite a challenging operating environment across the telecommunications sector.
TM, in the filing, said continued momentum in data, connectivity and digital services supported overall performance and reflects the resilience of its diversified revenue base.
Looking ahead, Amar Huzaimi said TM will continue to focus on disciplined execution of its strategic priorities.
“We are investing across fibre broadband, cloud, data centres, digital services, AI and GPUs. These investments will support our journey towards becoming a digital powerhouse by 2030, while positioning Malaysia as the region’s digital hub.”
On the business-to-consumer front, Amar Huzaimi highlighted that Unifi remains Malaysia’s convergent champion, driven by quad-play services spanning home, mobile, content, and lifetime solutions. “We have expanded Smart Home solutions and refreshed the Unifi TV experience to enhance engagement and stickiness.”
For enterprise and government clients, TM One continues to advance digital solutions, including cloud, cybersecurity, smart services and AI-powered initiatives across smart urban, forestry and smart tourism.
Amar Huzaimi said partnerships, such as the one with Serim Academy for cybersecurity training, will reinforce organisational alignment.
TM Global, the carrier-to-carrier segment, is targeting growth in regional connectivity through submarine cables, open landing stations, and AI-ready data centres offering GPU-as-a-Service.
“These initiatives strengthen Malaysia’s position as a regional digital hub and support rising demand from hyperscalers and carriers,” he said.
On efficiency and technology adoption, Amar Huzaimi noted, “We are adopting AI aggressively to improve efficiency and develop new products and services, but not to replace our workforce.”
He also reiterated TM’s commitment to sustainability and governance, citing improvements in global ESG benchmarks, FTSE For Good ratings, and the National Corporate Governance and Sustainability Awards.
The Sun Malaysia
