Chinese telecom network vendor ZTE today said it signed deal with U Mobile to expand its 3G and 4G LTE networks in Malaysia.

The strategy of U Mobile is to better customer experience.

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Under the co-operation framework agreement, ZTE will expand and optimize U Mobile’s networks in major cities of Malaysia.

ZTE will be supplying 3G wireless access, LTE wireless access, core network, power supply, bearer network and microwave transmission, among others.

U Mobile, according to earlier reports, will be spending RM1.5 billion or $470 million over the next 15 months to expand its network in Malaysia.

The privately owned mobile operator aims to increase its market share to 10 percent and increase its revenue by 50 percent in 2015, up from the slightly less than RM1 billion revenue in 2013.

U Mobile  is looking at adding 1,000 3G and 1,000 4G LTE sites in key cities and areas within Malaysia including the Federal Territory, Selangor, Seremban, Port Dickson, Nilai, Ipoh, Lumut, Penang, Johor Baru, Muar, Kluang, Segamat and Batu Pahat.

U Mobile aims to increase its subscriber base to 7 million from 5 million subscribers in September 2014. More than 80 percent of its subscribers comprise prepaid data users.

In December 2014, Reuters reported that U Mobile is planning to expand its network as bigger rivals such as Maxis and Axiata face declining profits mainly due to intense competition.

By the end of December 2014, ZTE had signed 170 commercial contracts for 4G LTE and EPC (evolved packet core) networks, covering 70 percent of countries with investments in 4G LTE.

Baburajan K
[email protected]