• HSBB related contract work issued to almost 200 local vendors, more to come
• 1,400 TM contractors exposed to HSBB training
• RM600 mil contract for FTTH Passive infrastructure awarded, tender process for other components ongoing

Telekom Malaysia Berhad’s (TM) High-Speed Broadband (HSBB) project is making considerable impact on economic activity in the country, generating work worth hundreds of millions of ringgit for local companies and businesses, creating numerous jobs, providing thousands of workers with training in project and infrastructure-related technology, and boosting local capacity building in the process.

The investment so far in building the HSBB infrastructure has benefited Malaysian companies considerably, with HSBB-related contract work issued to about 200 local vendors from 2008 to date. In addition, the scope and technologies involved in the implementation of the project is enabling TM to contribute towards human capital development and capacity- building in the country, as well as the creation of job opportunities. This is through the provision of training in the latest Internet Protocol (IP) and broadband technologies, as well as the recruitment of additional staff by the various project consultants, contractors and vendors.

“Even at this early implementation stage, the HSBB project is already benefiting Malaysian companies and businesses, and this boost comes at time of difficult economic conditions for local vendors and businesses. TM has also invested resources and is continuing to do so in boosting human capital development to ensure that the workforce involved in the project is equipped with the relevant skill sets and know-how,” said Dato’ Zamzamzairani Mohd Isa, Group Chief Executive Officer, TM.

The HSBB project has propelled TM to the forefront, with the Company being among the few in the world to pursue early adoption of an end-to-end IP network implementation. This in itself will assist the Company to build its capacity and expertise in IP technology, which is fast becoming the network technology of choice in many countries around the world. With this expertise acquired via the “knowledge export” in hand, TM and local companies involved in this project will be able to move up the value chain by offering consulting and other related services to other Telcos in the region who are thinking of introducing IP technology into their networks locally and internationally.

TM’s involvement in new technology and systems for the HSBB project has resulted in the creation of almost 4,000 new jobs within the project’s eco-system, with both TM and the external project consultants and vendors involved to cater for the project scope in systems, fibre access and IP core infrastructure.

In line with TM’s efforts at boosting the development of human capital related to the HSBB Project, TM has also launched a three-year Vendor Development Programme to ensure that its external local contractors have the requisite capacity and capability to undertake HSBB-related work. Under the programme, TM has conducted a series of training sessions on fibre technology for nearly 600 employees of the various external local contractors at its TM Training College in 2008. 800 more will undergo training on fibre optic technology and on Fibre-to-the-Home (FTTH) deployment in 2009.

To date, over 6,500 people in TM’s contractor workforce are overseeing the physical fibre access roll-out for HSBB. In addition, the project has also seen the deployment of a vendor workforce of over 13,000 personnel.

On the physical infrastructure side, TM has committed over RM600mil for the deployment of FTTH Passive infrastructure over the next 3 years. The work involves rolling out fibre access in the areas designated to receive HSBB services. More is expected to be spent on other elements of the new network in the next two years. This will help pump-in additional business and value-add into the local economy, thus boosting local business activity.

“While local companies and businesses have been major beneficiaries of the implementation of the HSBB network to date, the continued rollout of the RM11.3bil project in the coming years will bring more benefits to a broader cross section of Malaysian society in terms of capacity building, local content development, IP technology transfer and end-user experience,” according to Dato’ Zamzamzairani.

“We expect HSBB to have an impact on a very wide scale. It is forecast that by 2017, HSBB will boost national GDP by 0.6% and create 100,000 jobs,” he said.

Under the Public Private Partnership (PPP), TM is investing its own RM8.9bil over 10 years to finance the HSBB network infrastructure roll-out, while the Government is co-investing RM2.4 billion, making up the total of RM11.3 billion. The Government, through the Ministry of Information, Communications and Culture and the Malaysian Communications and Multimedia Commission (MCMC), has put in place a stringent review process for HSBB project claims. The claim submitted by TM will first be audited and verified by an independent consultant appointed by the Ministry. The independent consultant would then recommend the reimbursement amount to the Ministry, upon which the Ministry would then proceed with payment of the claim. To date, the Government has reimbursed TM a total of RM290mil for work completed as at end of Q1 2009. The reimbursements covered expenditure for work on the HSBB access infrastructure and HSBB IP core deployment as well as international links capacity expansion covered under the PPP arrangement.

In the meantime, TM will continue to drive Malaysia’s broadband penetration through its services categorized under the Broadband for General Population (BBGP). BBGP is a broadband service offering network speeds of up to 4.0Mbps delivered via wired, wireless and mobile technologies such as ADSL, WiFi, WiMax and High Speed Downlink Packet Access (HSDPA) and is available nationwide.

As Malaysia’s leading Internet Service Provider (ISP), TM will continue to provide BBGP for customers nationwide and help to bridge the digital divide. TM currently has more than 1.3 million (excluding Streamyx Zone customers) as at Q1 2009. Enhancing customer experience for BBGP remains a key focus area and TM will continue addressing service and network-facing improvements. To this end, TM has embarked on various initiatives which include introduction of more customer touch points for greater accessibility to TM’s products and services, implementation of innovative approaches for speedier service at TMpoint outlets, customer loyalty programmes as well as more convenient payment channels.

About TM

Telekom Malaysia Berhad (TM), Malaysia’s leading integrated information and communications group, offers a comprehensive range of communication services and solutions in broadband, data and fixed-line. As a market leader in the broadband and fixed-line businesses, TM is driven to deliver value to its stakeholders in a highly competitive environment. The Group places emphasis on continuing customer service quality enhancements and innovations.

With its extensive global connectivity, TM is poised to position Malaysia as a regional Internet hub and digital gateway for South-East Asia. In line with this, TM is evolving into a Next Generation Network service provider enabling the Group to enhance its efficiency and productivity while providing enriched products and services.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, community/nation-building and environment. Under education, TM has spent some RM800 million to develop Multimedia University into one of the top universities in Malaysia with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. Under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large. TM was awarded the prestigious STAR-BIZ ICRM Corporate Responsibility Award under the workplace category for 2008.

For further information on TM, visit www.tm.com.my.