U Mobile – Connecting next-gen communications

U Mobile, the youngest full-fledged telecommunications company in Malaysia, has seen rapid growth as a challenger and disruptor in a competitive four-operator market.

In its early years, U Mobile focused on innovative prepaid data packages and built a data-centric network. After the company was awarded additional spectrum, U Mobile and UOB signed a landmark RM1 billion credit facility agreement in 2018, which helped accelerate their expansion and network infrastructure development in a short span of five years.

UOB, with its deep expertise in the telecommunications, media, and technology (TMT) sector, was also banking U Mobile’s key global suppliers. This meant that the Bank was able to support U Mobile and its value chain in a more efficient manner.

In 2021, UOB extended a club loan to further support U Mobile as they continued to grow exponentially, with the latter offering a wider range of innovative and digital product offerings.

As part of their corporate strategy, sustainability is a key focus for U Mobile. UOB shares the same agenda towards sustainability and is able to offer industry-specific, sustainability-linked financing to support and incentivise companies to achieve their sustainability targets.

Today, U Mobile oversees a vast 5G-ready network of more than 9,000 network sites nationwide, serving more than eight and a half million subscribers.

With comprehensive solutions tailored to clients’ needs, UOB’s “One Bank” approach connects businesses to growth opportunities in the region, and beyond.

About this series

Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.

U Mobile – Connecting next-gen communications was first aired on 19 June 2023 under the Building Asia with UOB series. Discover how UOB supported U Mobile’s rapid rise as a challenger and disruptor in a competitive market as Malaysia’s youngest telco.

Transcript

Chen Chiat Chiat (Chief Financial Officer, U Mobile):

Hi, Andy. Welcome to U Mobile.

Andy Cheah (Head of Wholesale Banking, UOB Malaysia):

Very nice to see you again Chiat.

Chen Chiat Chiat:

Come, let's take a walk around our office.

We are so proud to be the youngest full-fledged telco in Malaysia. We have become an example of a successful and sustainable business in a four-mobile operator environment.

Andy Cheah:

U Mobile's transformation in just the past five years has been absolutely fantastic.

Chen Chiat Chiat:

In our initial years, we had very limited spectrums. We had to focus on building a data-centric network in Peninsular Malaysia and to extend our network coverage nationwide, we had a 3G RAN (Radio Access Network) share arrangement with partners.

Since then, U Mobile has actually gained a lot of customers and market share and we are so happy that the regulators recognised our efforts and rewarded us with additional spectrums.

Andy Cheah:

So, with the additional spectrums that you have got from the Malaysian authorities, UOB recognised that U Mobile was very well poised to bring innovation and disruption to the Malaysian telco market.

Chen Chiat Chiat:

We were so pleased that we signed the RM1 billion landmark deal with UOB. That helped to support our network roll out.

Andy Cheah:

Our relationship goes beyond just financing.

For instance, U Mobile's key equipment suppliers are global players and they are also UOB customers. Because of that key competitive advantage, we are able to then support U Mobile and your equipment suppliers in a very efficient way in terms of supporting the supply chain.

It was quite clear to us that U Mobile was ready to bring the business to the next level and with the additional financing, UOB was able to further help accelerate the expansion and the network infrastructure build for the business.

Chen Chiat Chiat:

U Mobile continues to adapt. Apart from delivering quality products and services and network experience, we have embarked on our sustainability journey as a responsible corporate in Malaysia.

Andy Cheah:

UOB shares the ambition of U Mobile in relation to the sustainability agenda towards net zero.

The availability of sustainability-linked finance benefits companies such as U Mobile in relation to supporting and incentivising them to achieve a set of sustainability targets.

Chen Chiat Chiat:

We look forward to UOB’s continued support as one of our core bankers as we pivot to our next phase of growth and in our quest to be Malaysia's preferred digital telco for 5G and beyond.

Andy Cheah:

And UOB will continue to be there to support the industry's ambitions for greater nationwide connectivity.