U Mobile, a prominent telecommunications provider in Malaysia, has announced a strategic partnership with Celcom Timur Sabah (CT Sabah) to facilitate the deployment of 5G leased circuits across the regions of Sabah and Labuan. This collaboration marks a significant step forward as both companies recently signed a Term Sheet agreement that sets the foundation for their partnership, aimed at accelerating U Mobile's forthcoming 5G network rollout.

The partnership is poised to take a major leap forward with the expected finalization of a Definitive Agreement, which is slated for completion by the third quarter of 2025. Once finalized, U Mobile will gain access to CT Sabahs extensive fiber infrastructure, which is particularly vital for enhancing connectivity in the northern region of Borneo.

As part of this agreement, CT Sabah will undertake the critical task of upgrading its existing 4G leased circuit sites to 5G technology. In addition to upgrading current sites, CT Sabah will also develop new leased circuit locations to meet the growing demands of U Mobiles second 5G network deployment. The substantial fiber network operated by CT Sabah extends over 10,000 kilometers across Sabah and Labuan, ensuring high-capacity connectivity and robust service for both individual consumers and businesses alike.

U Mobile's Chief Technology Officer, Woon Ooi Yuen, expressed enthusiasm regarding this partnership, stating, U Mobile is delighted to appoint CT Sabah as our fiber leasing partner in Sabah and WP Labuan in light of our upcoming 5G network expansion. We are committed to accelerating 5G coverage nationwide, and with CT Sabah onboard, it strengthens our capability to meet our rollout goals. Our aim is to provide a superior 5G experience that is not only reliable but also capable of supporting massive capacity and ultra-fast speeds for both enterprises and consumers throughout Malaysia. U Mobile is prepared to play an even greater role in narrowing the digital divide, aligning with national aspirations to establish Malaysia as a high-income digital nation.

In a related statement, CT Sabah's Chief Executive Officer, Zurinah Datuk Hanafiah, emphasized the importance of this collaboration, saying, CT Sabah is committed to advancing digital connectivity in Sabah and WP Labuan, and we view the 5G rollout as a critical step toward unlocking new opportunities for the region. This initiative will help drive digital transformation, stimulate economic growth, and enhance the quality of life for local communities. Our partnership with U Mobile is a vital enabler of this effort, and we take pride in supporting their 5G expansion by delivering robust and dependable fiber infrastructure.

To summarize, U Mobile has been entrusted with the responsibility of deploying Malaysias second 5G network, which will operate in competition with Digital Nasional Berhad (DNB). Following the receipt of its letter of award from the Malaysian Communications and Multimedia Commission (MCMC), U Mobile has enlisted Huawei and ZTE as its partners for 5G technology implementation. The company has strategically divided its 5G rollout into two distinct zones, with Huawei managing the deployment in West Malaysia and ZTE focusing on East Malaysia.

U Mobile's ambitious goal is to achieve 80% 5G population coverage within the first year of deployment, followed by a target of 90% coverage in the subsequent year. This initiative not only signifies a leap in technological advancement but also reflects U Mobile's commitment to bridging the digital divide and fostering economic development through enhanced connectivity.