U Mobile, Malaysia’s next generation 5G network provider, has signed a term sheet agreement to appoint Celcom Timur Sabah (CT Sabah), a provider of high-speed fiber optic infrastructure in Sabah and WP Labuan, to deploy 5G leased circuits in the state and federal territory.

Upon finalization of the definitive agreement, U Mobile will be tapping into CT Sabah’s robust fiber infrastructure to support and accelerate its upcoming 5G rollout in the region, U Mobile said in a statement on last Thursday.

As part of the agreement, CT Sabah will upgrade its existing 4G leased circuit sites to 5G and develop additional new leased circuit sites to meet U Mobile’s requirements as the nation’s newest 5G network provider.

U Mobile will benefit from CT Sabah’s extensive fiber network, which spans over 10,000 kilometers across Sabah and WP Labuan, ensuring strong, stable and high-capacity connectivity for both enterprises and consumers in the region.

“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 accelerate 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,” said Woon Ooi Yuen, Chief Technology Officer of U Mobile.

According to him, U Mobile is ready to play an even greater role in narrowing the digital divide, aligning to national ambitions of making Malaysia a high-income digital nation.

Meanwhile, Zurinah Hanafiah, Chief Executive Officer of CT Sabah, said the firm is committed to advancing digital connectivity in Sabah ad WP Labuan.

“We view the 5G rollout as a critical step toward unlocking new opportunities for the region. This initiative will help 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,” she added.

The definitive agreement is anticipated to be finalized by the third quarter of 2025.

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