30 Mar 2023
TM’S NEW FIBRE OPTIC NETWORK HUB (POINT OF PRESENCE) BRINGS FASTER, MORE RELIABLE INTERNET CONNECTIVITY TO RURAL AND REMOTE AREAS
Telekom Malaysia Berhad (TM) has today announced the completion of its new fibre optic network hub or point of presence (PoP) project phase one (1) installations, across northern region, Sabah and Sarawak. The launch ceremony, which was officiated by YB Fahmi Fadzil, Minister of Communications and Digital, took place at SMK Padang Terap, Kuala Nerang, Kedah. Also present were Dato’ Haji Pkharuddin Bin Haji Ghazali, Director-General of Education and Dato’ Sri Haji Mohammad Bin Mentek, Secretary-General, Ministry of Communications and Digital.
PoP is a place where different devices connect to each other and to the internet. In simple terms, PoP brings fibre closer to users. By setting up PoP locations near schools, people in rural and remote areas can get better and faster internet services in their homes, instead of relying on mobile internet. This will improve internet access and connectivity for more people in the community.
During the ceremony, YB Fahmi highlighted the significant benefits and opportunities that the new PoPs would bring. The new PoPs represent a major step forward in the Government's efforts to narrow the digital gap and promote digital inclusion across Malaysia.
A total of 4,370 PoPs had been planned under the 12th Malaysia Plan (12MP) where 4,323 PoPs will be installed near rural schools and 47 PoPs near industrial area. Phase one (1) of the project, involves 677 sites and the remaining will be implemented under phase two (2) over the span of three (3) years, 2022-2025. A total of 233 PoP circuits were installed under phase 1, with 100% completion achieved by TM, ahead of other industry players.
“We are thrilled to see the progress and achievements of this project, which will bring significant benefits and opportunities to the community, including improved internet quality, economic development and the development of new infrastructures,” said Shazurawati Abdul Karim, Executive Vice President of TM One.
PoP will create a more balanced and inclusive regional development, boosting the growth of new technologies like 5G and future generations of communication technologies. Through this initiative, users in TM's PoP area have now reached over 9,000 and are increasing. A total of 58 of its users are schools that have subscribed to Unifi services. The widespread internet accessibility will not only help to develop the rural economy but more importantly allow learning materials to be downloaded, to improve the quality of education in schools, equipping the future generations with a wealth of knowledge.
“As the nation's telecommunications leader, and enabler of Digital Malaysia, TM is committed to support the nation's development agenda through the benefits brought by hyperconnectivity and digital solutions, which will accelerate digital adoption and new economic growth,” added Shazurawati.
“The presence of PoP can attract technology companies, start-ups and other businesses that require a high-speed internet connection to operate. This can create more job opportunities, increase innovation, and stimulate economic growth in local communities,” concluded Shazurawati.
The collaboration between TM and the Government demonstrates the shared commitment to deliver digital inclusivity throughout Malaysia. For phase two (2) of PoP project, TM has been awarded with 174 sites in the central region. This phase is expected to further boost digital connectivity and economic development for Malaysia.
YOU MAY ALSO LIKE
TM and Telin collaborate to enable opportunities and enhanced experience for the region’s digital ecosystem
TM Wholesale, the wholesale domestic and international business arm of Telekom Malaysia Berhad (TM) and Telin, a subsidiary of PT Telkom Indonesia, Tbk (Telkom), have recently signed a Memorandum of Understanding (MoU) to strategically collaborate and jointly explore opportunities on subsea cable business arrangements. The signing ceremony was held at the Grand Hyatt Hotel, Dubai recently, where TM was represented by Amar Huzaimi Md Deris, Executive Vice President of TM Wholesale and Telin was represented by its Chief Executive Officer, Budi Satria Dharma Purba (Budi). This new partnership will further strengthen the Business to Business (B2B) relationship between the two parties and broaden the collaboration while continuing to provide their customers with reliable, diversified and uninterrupted connectivity solutions. Commenting on the partnership, Amar Huzaimi Md Deris, Executive Vice President of TM Wholesale said, "TM Wholesale is committed to deliver greater reachability and resilient connectivity to our customers. This collaboration allows us to gain immediate submarine capacity in response to the growing demand for high bandwidth services. It also gives us more diverse connections and alternative routes connecting Malaysia to the rest of the world, while optimising our existing submarine capacity. Additionally, it will enable us to begin exploring the most cost-effective approach for future submarine cable investment projects that will benefit both parties and this region." Meanwhile, Budi Satria Dharma Purba (Budi), Chief Executive Officer of Telin said, "Telin and TM Wholesale share mutual interests, with the aim of serving our stakeholders with excellence. This time, we are excited to jointly explore opportunities in buying, selling, upgrading and investing activities, especially with regard to subsea cables. Telin's participation in global connectivity focuses on ensuring reliable connectivity in order to meet surging demand for fast internet due to trends such as flexible working arrangements, video streaming, and gaming. We believe that this collaboration will serve our stakeholders' needs accordingly." Currently, TM has 30 submarine cable systems, owned and leased, spanning more than 320,000 kilometres around the globe and Telin has 22 submarine cable system, owned and leased, with over 222,260 kilometres. Together, both parties can leverage on their respective capabilities to provide the highest service performance and best quality experience to all its customers. TM has been a long-standing partner of Telin in many aspects related to business solutions and are mutually delighted to work together in supporting ASEAN and other region's future digital demands for connectivity, digital infrastructure and solutions.
TM’s response to the national crisis and assurance to customers, communities and businesses affected
As a result of the extreme and continuous heavy rainfall since Friday (17 December 2021), some telecommunication services provided by Telekom Malaysia Berhad (TM) have been impacted. A number of telecommunication equipment particularly in Selangor, Negeri Sembilan and Pahang were damaged resulting in service disruption in several areas. At the time of reporting, TM’s National Crisis Command Centre is up and running, and we are closely monitoring our network sites. The flash floods and landslides have caused several of our nodes in the three (3) states to be inaccessible due to high water and unsafe conditions. In the meantime, we have had to shut down power supply and network equipment in some areas as a precautionary measure to ensure the safety of those in the vicinity and minimise any potential risks. We have mobilised our front-liners and as conditions permit, we are actively pursuing network restoration in the flood-stricken zones to minimise any service interruption, ensuring customers remain connected. Our immediate concern is of 50,000 of our valued customers on unifi, streamyx, fixed line and unifi mobile who are affected, and we are working hard to ensure communication services are being safely re-established. Concurrently, the GLC/GLIC Disaster Recovery Network (GDRN) has been activated to provide welfare aid and support to those affected by this disaster. As a start, a total of RM50 million has been allocated for relief initiatives comprising of a matching grant of RM25 million by the Government, while the GLCs/GLICs will jointly contribute another RM25 million. As part of GDRN, which TM co-leads as the Secretariat together with Yayasan Hasanah from Khazanah Nasional Berhad, we are collaborating with the National Security Council (NSC) through NADMA (“Agensi Pengurusan Bencana Negara”) and other agencies to assist in furthering other disaster relief assistance. Together with the members of GDRN, we will mobilise rescue and aid efforts to ensure that basic necessities and healthcare can be provided to those in need. The 56th Royal Signals Telekom Army Reserve Regiment (56 Rejimen Semboyan Pakar Telekom Askar Wataniah) which comprises of volunteers from TM has been deployed on the ground to provide assistance and emergency services involving internet and telephone lines nationwide. “Though the situation remains uncertain, I am grateful for the quick action especially on the part of the TM engineering and customer care team for keeping our customers updated and working towards restoring the much-needed connectivity services. As we brace ourselves in anticipation of worsening conditions, we remain hopeful that Malaysians in need will receive the help they require. Our front-liners will be on the ground around the clock to restore services and bring the impacted States back on its feet,” said Imri Mokhtar, Group Chief Executive Officer of TM.
TM delivers double digit revenue, EBIT and PATAMI growth in Q2; on track to achieve its 2022 market guidance
2Q2022 Key Highlights (vs 2Q2021) Increased demand for Internet and Data translated to an 11.8% growth in Operating Revenue, at RM3.09 billion compared to RM2.76 billion Manpower and other OPEX cost optimisation contributed 81.3% EBIT growth, recorded at RM702.7 million PATAMI up 73.0% at RM378.0 million from RM218.5 million, as a result of higher operating profit and lower net finance cost Invested 15.7% of revenue in CAPEX or RM484.5 million in fibre expansion, network upgrades and support systems Free Cash Flow increased 36.4% at RM730.5 million, mainly attributed to increase in revenue and cost optimisation initiatives Interim Dividend of 9.0 sen per share declared with Dividend Reinvestment Scheme applicable (DRS) On track to achieve its 2022 market guidance, TM continues to strengthen core businesses while investing in new growth areas Telekom Malaysia Berhad (TM) has sustained its growth trajectory, delivering an excellent set of financial results across all key metrics for the second quarter ended 30 June 2022, offering converged services and solutions and demonstrating its resilience against increasing competition from other telco and technology players. The Group’s operating revenue grew by 11.8% to RM3.09 billion, compared to RM2.76 billion in the same quarter last year (YoY), on a foundation of strong performance across every customer segment and a sharp increase in revenue from all lines of service, particularly Internet and Data. Optimisation efforts enabled TM to record lower manpower and other OPEX costs, which led to higher Earnings Before Interest and Taxation (EBIT), up 81.3% at RM702.7 million compared to RM387.6 million YoY. Profit After Tax and Non-controlling Interest (PATAMI) was up 73.0% at RM378.0 million from RM218.5 million YoY, on the back of accelerated demand for connectivity, services and digital solutions. The Group applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter. In addition to Group-wide cost optimisation initiatives, the revenue jump helped drive an increase of Free Cash Flow by 36.4% to RM730.5 million YoY, putting TM in a solid position to make future investments and further reduce debt. TM also declared an Interim Dividend of 9.0 sen per share in line with its policy to distribute yearly dividends of 40% - 60% from its PATAMI. The DRS is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation into the Group’s continuous growth momentum.unifi: Maintaining growth momentum As the leading convergence provider in Malaysia, unifi recorded a 10.3% revenue increase from RM1,272.0 million to RM1,402.6 million in the current quarter, driven primarily by continuous growth of fixed broadband subscribers, which recorded a 14.1% increase from the same quarter last year. unifi continues to innovate the home entertainment landscape, rapidly adapting to consumer consumption patterns through more attractive content that can be viewed both at home via high-speed broadband as well as on mobile devices via the playTV@unifi app. Its growing content ranges from Hollywood to Hallyu, offering variety for everyone. unifi's focus also extended to local SME businesses with the month-long #BelanjaDiSME campaign, as well as the SME Digitalisation Grant (SDG), which provides entrepreneurs with up to 50% savings for internet subscriptions and digital solutions.TM Wholesale (TMW): Leading the charge in positioning Malaysia as a digital hub TMW continues its march to be the nation’s preferred network infrastructure provider and to position Malaysia as a digital hub. Revenue for the current quarter increased by 26.4% from RM585.3 million YoY to RM739.9 million, contributed mainly by higher revenue from data and voice services. TMW’s compelling performance is underpinned by escalating domestic data demand and new deals secured on the international front. It recorded the highest installation for High-Speed Broadband (HSBB) Access in June 2022, driven by mobile network operators (MNOs) and content service provider under JENDELA. TMW also delivered more than 4,500 cumulative 4G and 5G backhaul sites in supporting the MyDIGITAL blueprint for enhanced digital inclusivity nationwide. On the international front, TMW has secured new deals with a US-based hyperscaler and a North Asian digital provider. Simultaneously, its collaborative agreement with Globe Telecom will enable its customers to enjoy superior gaming experiences, a strategic move to expand its business beyond its telco offerings.TM One: Stronger performance amidst market challenges The Group’s enterprise and public sector arm, TM One, recorded an increase in revenue of 4.1% YoY to RM854.6 million, with growth from recurring business across the enterprise and government sectors. Global supply chain challenges and delays, however, continued to impact its operations and subsequent delivery of several customer projects. As the sole local provider for the Government’s MyGovCloud initiative, TM through TM One, is the only hyperscale cloud provider to offer data residency, data locality and data sovereignty for the Malaysian Government and its citizens. This eliminates potential risks from international regulations, policy interventions, or risk of Malaysian data housed beyond Malaysia’s borders.Credence: Spearheading TM’s growth into the digital tech space Responding to the fast-growing market demand for the digitalisation of enterprises, Credence was recently launched to drive greater levels of digital capabilities and technology skills for the Group’s corporate customers. Established as a start-up, Credence is TM’s new cloud and digital services company, focusing on becoming a trusted technology partner to accelerate the digital transformation of large enterprises and the public sector. Leveraging TM’s existing technology partners and new ventures, Credence will also accelerate the Group’s transformation in the digital tech space.Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer “At the mid-point of 2022, our financial performance and results demonstrate TM’s ability to manage our businesses effectively despite the headwinds arising from a challenging and competitive business environment. These results are also a powerful testament of our transformation journey, and our commitment to deliver a sustainable and inclusive Digital Malaysia. “unifi will continue its trajectory to provide converged solutions to both residential and SME customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options. “TM One remains focused in enabling the digital transformation of the enterprise and public sectors. Complemented by its global partner ecosystem, TM One continues to make inroads on bespoke solutions engineered and supported by its in-house ICT capabilities. “TM Wholesale is on course to provide a comprehensive suite of advanced wholesale communication services and solutions for both domestic and global fronts. TMW is poised to position Malaysia as a digital hub for the ASEAN region. “As part of TM’s commitment to empower businesses on their digital transformational journey, the Group will also address the digital and tech skills gap through Credence. This new digital services subsidiary will deliver a differentiated advantage for enterprise digital solutions, providing greater and faster time-to-value with customised options for enterprises. “Looking ahead, 5G will level the playing field and move the industry away from network-based to service-based competition. TM welcomes the Government’s call for the industry to take up equity stakes in DNB. 5G will open up and expand the opportunities and growth areas for all of TM’s business segments – consumers, SMEs, enterprises, wholesale as well as digital services. We look forward to rolling out 5G-enabled products and solutions and unlocking value to meet customers’ demands. “As Malaysia’s convergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term. “Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience, as we continue on our evolution towards becoming a human-centred technology company.”
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!