29 Sep 2021
TM & Astro collaborate to deliver high quality digital experience
TM provides Astro with full suite of wholesale infrastructure and connectivity solutions to enable Astro to serve its customers with reliable broadband and content services.
Telekom Malaysia Berhad (TM) and Astro Malaysia Holdings Berhad’s wholly-owned subsidiary, MEASAT Broadcast Network Systems Sdn Bhd (Astro) today inked deals to collaborate in delivering a high quality digital experience to all Malaysians. The collaboration also signifies both companies' commitment to support the “Jalinan Digital Negara” (JENDELA) initiative in providing wider broadband coverage and a better experience nationwide.
Through this strategic collaboration, TM, via TM WHOLESALE, its global and wholesale business arm, will provide Astro with a full suite of infrastructure and connectivity solutions that comprises the whole range of wholesale services inclusive of high speed broadband (HSBB), bandwidth, backhaul and Internet access. This extensive and robust fibre network infrastructure will enable TM together with Astro to provide high-quality and reliable connectivity to their end-users.
With TM’s HSBB service, Astro also will be able to provide broadband services to its customers without having the need to build a new infrastructure while extending its coverage to wider areas across the country via a fibre network. As for Internet services, TM’s internet access solution will enable Astro to offer high performance internet connectivity and a comprehensive solution to its customers.
To complete the services, TM will also provide Astro with its Content Delivery Network (TM CDN), a newly developed content platform service that delivers seamless, faster and secure digital content. This will enable Astro to strengthen its video streaming efficiency to its current service offerings.
Commenting on the collaboration, Imri said: “TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry’s broadband growth. We are also the primary mobile backhaul infrastructure provider for the industry with extensive coverage and capacity. As the digital infrastructure accelerator in Malaysia, we have always been a strong advocate of infrastructure sharing. Thus we are honoured to be given this opportunity to leverage each other’s expertise to provide Malaysians with high quality broadband and content services that we have. This strategic collaboration also demonstrates our commitment to ensure Malaysians are provided with a seamless and “always-on” connectivity experience. We are happy to work with Astro and this is yet another testament to our pivotal role as the enabler of Digital Malaysia aspirations.”
Meanwhile, Henry Tan said: “This strategic partnership with TM lays the foundation for Astro to be an internet service provider. Astro’s goal is to provide Malaysians with the best digital experience and broadband value proposition. Leveraging on the strength of TM’s wide HSBB network will enable Astro to realise new revenue streams, scaling our broadband service with content bundles, or standalone broadband and other product lines. This deal gives us more flexibility to offer great value and convenience to our customers.”
YOU MAY ALSO LIKE
TM announces another steady full year performance (FY2021) with EBIT up 6.6% at RM1.71 billion; revenue up 6.4% at RM11.53 billion; declares 6 sen per share dividend
As a result of jump in revenue and continuous cost optimisation initiatives, Earnings Before Interest and Tax (EBIT) increased 6.6% to RM1.71 billion from RM1.60 billion in 2020 despite one-off provisions, impairments and accelerated depreciation Telekom Malaysia Berhad (TM or the Group) delivered yet another healthy set of financial results for the Full Year 2021 ended 31 December 2021 as compared to the same period last year (YoY), despite protracted impact from the ongoing pandemic on the economic and business front. Fueled by strong growth in unifi revenue and fixed broadband subscribers, as well as sharp growth in the TM Wholesale business which registered increasing data demands from hyperscalers, and international and domestic service providers, TM recorded a 6.4% rise in revenue to clock in at RM11.53 billion from RM10.84 billion in 2020. This marked revenue improvement as well as the Group’s continuous cost optimisation initiatives led to the increase in Earnings Before Interest and Tax (EBIT), up 6.6% YoY to RM1.71 billion, from RM1.60 billion last year. Profit After Tax and Non-Controlling Interests (PATAMI) at RM895.2 million dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income and forex losses, as well as impairment of TM’s mobile assets as the Group prepares itself for 5G. Based on its steady financial position and strong Free Cash Flow generation, the Board of Directors proposed the final interim dividend at 6 sen per share, resulting in a total dividend of 13 sen per share for 2021, in line with the Group’s growth investment strategy. CAPEX for the year was reported at RM1.70 billion, or 14.7% of revenue, reflecting TM’s commitment to reinvest in business expansion, new growth areas and provide great experience and services for its growing base of customers. Free Cash Flow at RM2.19 billion rose 9.5% from RM2.00 billion, ensuring steady growth ahead of a demanding future. unifi: Record-breaking revenue, total subscribers It was a landmark year for unifi, contributing to the Group’s strong performance. Overall unifi revenue grew by 10.3% driven by increased fixed broadband subscribers, with 2.78 million cumulative registered subscribers - the highest number of unifi and fixed broadband customers registered, as well as highest number of ports installed. In addition to unifi’s drive to reduce broadband downtime to the absolute minimum for its customers, the business introduced five #unificares initiatives to refine its end-to-end customer experience, with the highlight being unifi’s 24-hour service restoration guarantee, the first of its kind in the Malaysian telecommunications industry. In its effort to support SME recovery and growth, unifi has offered more than 377,000 local SMEs special packages with complete digital ecosystem to help them to grow their business and stay competitive. unifi will continue to maintain its leadership in convergence of broadband, content, mobile and solutions for both home and SMEs customers. With online connectivity playing a central role to enable Digital Malaysia, unifi bridges the connectivity gap by serving customers with innovative and high-quality products and services. TM Wholesale (TMW): Realising 5G and Malaysia’s digital hub aspiration TM continues to drive wholesale business for both domestic and international segments via TM Wholesale (TMW). With a strong performance last year, TMW’s posted revenue grew by 14.7% due to solid partnership expansion with domestic and international customers. Domestically, as the preferred fibre service provider, TMW will continue to pursue 4G and 5G fibre infrastructure deployment as well as promoting collaboration with domestic service providers, in line with the Government’s JENDELA initiative. The 5G fibre leasing services (worth RM2 billion over 10 years) for Digital Nasional Berhad (DNB)’s 5G infrastructure needs, is a testament of TM’s commitment to infrastructure sharing in enabling excellent wireless solutions and services. TMW also recorded the highest active ports subscription for wholesale High-Speed Broadband (HSBB) access with more than 550,000 cumulative ports for Malaysian fibre broadband providers. On the international front, TMW continues with its aspiration to become a digital hub for the ASEAN region through strategic collaborations with hyperscalers and global service providers. The year saw a solid achievement with 190 new deals from hyperscalers and global service providers for various wholesale International Data offerings. This translated into the highest annual revenue contribution from major hyperscalers worldwide, a milestone year in building a regional hub position for Malaysia. TM ONE: Custom solutions and digital adoption amid a challenging landscape TM ONE is expected to remain competitive amidst the challenging economic and business environment. This is driven by its strong value proposition of offering the end-to-end managed services and digital solutions, backed by robust digital connectivity and infrastructure. As the only home-based Cloud Service Provider (CSP) with data sovereignty assurance, TM ONE will continue enhancing its Cloud service as a complete digital solution by embedding analytics, smart services/IoT and cybersecurity to cater for the key industry verticals. Enterprises and public sector services are on an accelerated path to digitally transform, leveraging on cloud architecture and smart services as a foundational pillar to unlock innovation opportunities, stay resilient and maintain a competitive edge, all in line with Malaysia’s MyDIGITAL aspirations. In becoming a trusted cloud partner, TM ONE focused its efforts in boosting proficiencies and competencies of its solution consultants, technology experts as well as international certifications. It has attained four (4) International Standard certifications (ISO/IEC) for Cloud α (pronounced as Cloud alpha) on Information Security Management System (ISMS), Personal Data Protection Act (PDPA), Business Continuity Management System (BCMS) and Cloud Specific Controls. Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer “As the enabler of Digital Malaysia, TM remains steadfast in its efforts to realise the national digital aspirations. We are committed to support the Government’s efforts to re-build the economy post-pandemic. For 2021, TM has shown positive results, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the Group’s profitability. As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory. TM’s revenue growth is expected to remain intact, in line with the Group's market guidance, which is between low to middle single digit growth, while EBIT is projected to be more than RM1.80 billion, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale. We expect to invest between 14% to 18% of our revenue this year on Capex, reflecting our continued commitment to reinvesting into growth areas, capability, and capacity building, as well as enhanced customer experience. In promoting sustainability, TM aligns its ESG (Environmental, Social, Governance) vision and commitments to national and global aspirations. For Environmental, TM is committed to achieve carbon emission reduction by 30% in 2024, 45% by 2030 and Net-Zero emission by 2050. On Social, TM is set to enable MyDIGITAL Blueprint 2025 targets by ensuring at least 70% of premises have access to high-speed Internet. Under Governance, TM works hand-in-hand with the Malaysian Anti-Corruption Commission (MACC) to continue upholding our zero-tolerance to any form of corruption and maintaining the highest standards of corporate governance. This year, we will continue to power a digital nation, by delivering great Customer Experience, Solutions and Connectivity Excellence. This is made possible with unwavering support from its core execution engine; the employees or "Warga TM" who are fully dedicated and committed to enabling a Digital Malaysia, bridging the digital divide and in step, reducing the income divide.” In its pursuit to strengthen its core connectivity and invest more in digital, TM is future-proofing the organisation with future-ready skills and digital workforce, as part of its aspiration in becoming a human-centred technology company.” Guidance for 2022 is summarised below: Revenue Growth Low to middle single digit growth Low to middle single digit growth EBIT More than RM 1.8 billion CAPEX / Revenue Between 14% - 18%
Statement from TM on Government's decision to retain Single Wholesale Network (SWN) for 5G
1. TM welcomes and supports the Government's decision to continue with the Single Wholesale Network (SWN) model for the deployment of 5G in the country. We believe this reflects the national aspiration for an inclusive digital Malaysia. 2. The SWN model reflects the shared responsibility to meet the collective objectives of 5G for Malaysia: Telcos to focus on investing and developing innovative 5G products and solutions for end customers. DNB shall focus on network-build towards faster rollout of coverage and capacity in a cost efficient manner. TM will continue to provide the fiber backhaul as committed in the signing of the agreement with DNB on 16 Dec 2021. This is another example of public-private partnership in the rollout of critical telecommunications infrastructure to boost economic development and enhance the well-being of Keluarga Malaysia. 3. We look forward to rolling out 5G-enabled products and solutions to our unifi and TM ONE customers. As such, we are currently undertaking internal customer and network trials to bring an improved convergence proposition of fiber plus 5G services to our unifi and TM ONE customers. This is subject to finalising our wholesale agreement with the DNB.
TM collaborates with 14 financial institutions to establish Vendor Financing Programme
PERINTIS Launched to Empower Local SME Vendors; Boost Growth of Businesses Towards Ensuring Sustainability PERINTIS to provide comprehensive and flexible financing facility as well as consultation for TM local SME vendors TM committed to strengthen its vendor ecosystem and accelerate vendor transformation through continuous upskilling and development programmes TM continues to support and develop local entrepreneurs especially in the new and emerging economy supporting Industrial Revolution 4.0 (IR4.0) towards ensuring their sustainability and growth As part of its nation building effort towards ensuring the sustainability of local vendors, Telekom Malaysia Berhad (TM) today announced its collaboration with selected financial institutions to embark on a TM Vendor Financing Programme called "PERINTIS". The programme will see the involvement of 14 financial institutions providing financing facilities and consultations for TM local SME vendors. The institutions are Bank Islam Malaysia Berhad, Maybank Islamic Berhad, CIMB Bank Berhad, Bank Muamalat Malaysia Berhad, RHB Islamic Bank Berhad, United Overseas Bank (Malaysia) Bhd, HSBC Bank Malaysia Berhad, Small Medium Enterprise Development Bank Malaysia Berhad, Bank Kerjasama Rakyat Malaysia Berhad, Perbadanan Usahawan Nasional Berhad, PMB Tijari Berhad, Bay Group Holdings Sdn Bhd, Commerze Capital Sdn Bhd and El-Nuwr Capital Sdn Bhd. To signify the collaboration for the PERINTIS programme, a Memorandum of Understanding (MoU) was signed between TM and all the 14 institutions. Imri Mokhtar, Group Chief Executive Officer of TM signed the MoU on behalf of TM while the participating financial institutions were represented by their respective heads. The signing ceremony was witnessed by YB Dato' Sri Dr. Hj. Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Cooperatives, accompanied by Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM. Also present at the event were Dato' Sri Haji Mohammad Mentek, Secretary General of the Ministry of Entrepreneur Development and Cooperatives and his Deputy, Datuk Haji Zamri Salleh, Deputy Secretary General of Entrepreneur Development. Commenting on the collaboration, Tan Sri Dato' Seri Mohd Bakke said: "TM is committed to continuously strengthen our vendor ecosystem through upskilling and development programmes. The programmes are aimed at boosting the growth of the vendors towards ensuring their sustainability, while at the same time upholding integrity in all activities undertaken. This PERINTIS programme was initiated to provide TM's local SME vendors with flexible financial support and convenience towards enhancing their capabilities and viability. It is also in line with the Government's efforts to promote vendors' business viability and to create employment opportunities in the country." "Our vendors are our strategic business partners and they play a pivotal role in our business operations. With their undivided support, TM is on the right path to deliver more innovative digital products and solutions to all our customers; preparing them with the right foundation for Industrial Revolution 4.0 (IR4.0)," he added. PERINTIS: Providing comprehensive and flexible financing facilities towards building the capacity and capability of its vendors The PERINTIS programme will provide TM vendors with added convenience through various financing facilities and financial advisory. Under this programme, TM vendors will enjoy comprehensive financing packages across all levels and sizes of business including those with sub-contractors; with the value of up to RM10 million, depending on the number of contracts obtained from TM. The offering will start from the stage of preparation of equipment and requirements to obtain a contract from TM. The disbursement processes will also be expedited to ensure that the vendors are viable and are able to support the business. In addition, the programme offers accelerated loan approval, made possible through a cooperation between the financial institutions and a credit guarantor which acts as a guarantor based on the Risk Acceptance Criteria and Eligibility Criteria agreed with the participating financial institutions. Being at the frontier of each telecommunication technology evolution of the nation, TM remains steadfast to support and develop local entrepreneurs, particularly Bumiputera vendors to accelerate the Digital Malaysia's aspirations.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!