Telekom Malaysia Berhad (TM) and U Mobile have recently joined forces in a move that could reshape Malaysia’s telecommunications frontier, especially in the race to nationwide 5G coverage. At the heart of this collaboration is a hefty RM2.4 billion, 10-year contract, which sees TM stepping in as U Mobile’s chief fibre backhaul operator. This deal isn’t just a business handshake—it’s a strategic leap toward accelerating Malaysia’s 5G infrastructure, promising to set new standards in digital connectivity and economic growth.
TM’s fibre network is the silent powerhouse enabling this leap. The fibre backhaul infrastructure serves as the critical link between U Mobile’s 5G towers and the core network, providing the strong, fast, and reliable data pipelines necessary for 5G to perform as intended. Low latency, high capacity, and consistent reliability help ensure that 5G’s promise of lightning-fast speeds and seamless connectivity doesn’t just stay on paper but reaches Malaysians across the country.
This partnership amplifies TM’s key role in Malaysia’s ongoing digital transformation journey. As the nation shifts gears from 4G to 5G, the backbone—the fibre optic network—becomes non-negotiable. TM doesn’t just deliver that backbone; it’s been actively growing it. With recent expansions featuring new fibre optic hubs throughout northern Malaysia, Sabah, and Sarawak, TM is positioning itself to meet the surge in demand for high-speed data connectivity. By beefing up its infrastructure, TM is making Malaysia’s 5G dream a tangible reality, broadening the reach and robustness of digital access beyond urban centers into more remote regions.
But the story isn’t just about infrastructure—it has financial muscle behind it. CIMB’s projections point to a sweet bump in TM’s earnings, estimating that the fibre deal alone could increase revenue by RM100 million to RM230 million during fiscal years 2026 and 2027. These numbers highlight the profitability of infrastructure partnerships in Malaysia’s telecom scene, reinforcing the idea that backbone networks are as lucrative as they are vital.
TM’s growth story doesn’t stop there. They’re also cashing in on ventures like their data centre joint effort with Singtel, expected to add another RM80 million to RM85 million to earnings starting 2027. This signals TM’s broadening playbook, as the company diversifies beyond just fibre into digital infrastructure services like cloud computing and data management, which are becoming increasingly central to Malaysia’s digital economy.
On U Mobile’s side, their role as Malaysia’s second 5G service provider, with regulatory green light from the Malaysian Communications and Multimedia Commission, marks them as a rising contender hungry to carve out share in Malaysia’s telecom arena. Leveraging TM’s fibre network as their backbone means their 5G rollout can sprint ahead without having to build the expensive infrastructure from scratch. The RM2.4 billion, decade-long agreement underscores U Mobile’s commitment to expansive and rapid 5G deployment, aiming to provide not only consumer mobile services but also enterprise-grade solutions for IoT, smart city projects, and other digital applications that rely on 5G’s capabilities.
Moreover, U Mobile is not just resting on infrastructure gains — they’re actively working to improve user convenience with initiatives like multiple platform-driven bill payments and attractive service deals. This customer-first approach fuels their ambition to penetrate the market deeply, making 5G accessible and user-friendly for Malaysians.
Beyond individual business wins, this TM-U Mobile partnership captures a broader trend in Malaysia’s telecommunications evolution—collaborative infrastructure sharing as the foundation for advancing nationwide digital ecosystems. TM’s efforts to expand fibre coverage to hit 58% household penetration in Sabah by 2025, along with their investments in strategic points of presence and content servers, underscore a systemic commitment to closing connectivity gaps, a critical move for inclusivity and economic opportunity in less connected areas.
Government-led initiatives like the Jendela project, which aggressively promotes fibre adoption and broadband penetration, create a synergistic environment that complements TM’s infrastructure expansions and subscriber growth. As the fibre web widens, users across Malaysia can tap into faster speeds, reduced latency, and reliable connections—prerequisites for the full adoption of 5G and the digital future it enables.
Crucially, the partnership aligns well with national 5G strategies, including close cooperation with Digital Nasional Bhd (DNB), Malaysia’s first 5G network provider. This cooperation reduces redundant efforts and optimizes network sharing across stakeholders, reinforcing a more efficient and sustainable telecom infrastructure.
Taken together, the TM and U Mobile alliance marks a significant milestone in Malaysia’s 5G journey. It promises substantial financial rewards for TM while empowering U Mobile’s competitive presence with a robust fibre backhaul engine. This collaboration not only fast-tracks the deployment of next-generation digital infrastructure but also fosters an environment conducive to innovation and economic advancement driven by enhanced digital experiences. Consumers and businesses alike are poised to reap the benefits—ranging from faster internet speeds to enabling transformative technologies—that will steer Malaysia toward a more connected, competitive future.
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