U Mobile has renewed its device supply chain contract with Singapore-listed TeleChoice International at an estimated S$1.3 billion, keeping the telco's distribution running across Malaysia into the next decade. TeleChoice's wholly-owned arm, Planet Telecoms Managed Services (PTMS), will continue to supply phones, accessories and wearables to U Mobile's stores nationwide.
Quick facts
- Deal value: estimated S$1.3 billion, higher in annual value than the first contract
- Term: three years firm from February 2027, extendable by two more
- Who: PTMS, the managed services arm of SGX-listed TeleChoice
- Scope: stock, warehousing, fulfilment, distribution, inventory financing and delivery insurance for U Mobile in Malaysia
- Up from: the first S$500 million, three-year contract signed in February 2024
The renewal roughly doubles the annual value of the 2024 deal, reflecting a wider scope of work. TeleChoice expects it to lift the group's earnings and net tangible assets for the financial year ending December 2027.
What PTMS actually runs
PTMS manages U Mobile's device supply chain from procurement to the shop floor: stock management, warehousing, order fulfilment and distribution. It also finances the device inventory and insures deliveries, and uses real-time data to keep products in stock during campaigns and promotions, which is where a telco most often runs short.
The footprint has grown quickly. TeleChoice says the network it manages for U Mobile has expanded from over 600 to more than 1,000 touchpoints, which it credits for faster procurement and a broader range of brands, models and accessories on U Mobile's shelves.
Why it matters for U Mobile
The deal lands as U Mobile pushes its ULTRA5G network out nationwide. The telco hit 90% 5G coverage across Malaysia ahead of schedule, and is lining up coverage for projects such as the Johor-Singapore RTS Link. A faster, better-stocked device pipeline is what turns that network reach into phones and plans sold in stores.
"In just three years, the network we manage for U Mobile has grown from over 600 to more than 1,000 touchpoints across Malaysia," said Pauline Wong, President and CEO of TeleChoice. "As U Mobile extends the nationwide reach of its ULTRA5G network, we will invest further in our people, systems and automation."
"Our renewed agreement with TeleChoice builds on the operational capabilities our teams have developed together," said Wong Heang Tuck, CEO of U Mobile. "It will help us respond to changing demand across our sales and distribution channels as we expand our 5G network nationwide."
What is next
PTMS plans to explore AI in demand forecasting and inventory planning, and to use the U Mobile partnership as a template to grow its managed services business across the region. For shoppers, the read is simpler: the company that keeps U Mobile's stores stocked has signed on for several more years, with more money and a wider brief behind it.
