U Mobile, a prominent telecommunications provider in Malaysia, has officially appointed Celcom Timur Sabah (CT Sabah) to spearhead the deployment of 5G leased circuits in the regions of Sabah and Labuan. This partnership marks an important milestone in the telecommunications landscape, as both companies have recently signed a Term Sheet agreement that sets the stage for a collaborative effort aimed at accelerating U Mobile's ambitious 5G network rollout.

Once the Definitive Agreement is finalized, which is anticipated to occur by the third quarter of 2025, U Mobile will gain access to CT Sabahs extensive fiber infrastructure located in the northern part of Borneo. This strategic collaboration will enable U Mobile not only to enhance its 5G services but also to leverage CT Sabahs existing resources to fortify its network capabilities.

The partnership includes a significant upgrade plan, wherein CT Sabah will transition its current 4G leased circuit sites to 5G technology. Additionally, new leased circuit sites will be constructed to cater to U Mobiles growing requirements for deploying the second 5G network in Malaysia. The fiber network managed by CT Sabah spans over 10,000 kilometers throughout Sabah and Labuan, ensuring that both consumers and businesses in these regions will benefit from robust, stable, and high-capacity connectivity.

Woon Ooi Yuen, Chief Technology Officer of U Mobile, expressed enthusiasm regarding the collaboration, 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 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 with national ambitions of making Malaysia a high-income digital nation.

In response, Zurinah Datuk Hanafiah, CEO of CT Sabah, highlighted the importance of this partnership, stating, 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 facilitate 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 fiber infrastructure.

In a broader context, its important to note that U Mobile has been selected as the telecommunications operator responsible for deploying Malaysia's second 5G network, a project which will compete directly with Digital Nasional Berhad (DNB). Following the receipt of its letter of award from the Malaysian Communications and Multimedia Commission (MCMC), U Mobile has also enlisted technology giants Huawei and ZTE as partners for the 5G rollout, with Huawei overseeing operations in West Malaysia and ZTE managing the East Malaysia segment.

U Mobile has set ambitious targets for its 5G deployment, aiming for 80% population coverage within the first year of launch and striving for a remarkable 90% coverage in the subsequent year. This aggressive strategy underscores the company's commitment not only to enhancing telecommunications services in Malaysia but also to contributing to the nation's digital evolution.