Following its statement issued on 21 September 2018, Telekom Malaysia Berhad (TM), the nation’s pioneer broadband provider and now convergence champion, today reiterated its commitment to enhance the broadband experience of Streamyx customers; and shared that discussions with the Government and the Ministry of Communications and Multimedia are underway to effectively address issues faced by Streamyx customers.
TM would like to reassure its 2.3 million broadband customers and all its stakeholders that TM plays an active part in the dialogue, debate and conversations that are ongoing in the industry towards building a more balanced and inclusive digital nation. This is in line with TM’s vision to deliver high speed broadband with a wider nationwide coverage to all Malaysians.
TM has been continuously investing in its infrastructure over the years, to provide connectivity and also in order to elevate the experience of both its unifi and Streamyx customers, concurrently. The primary focus is in expanding Malaysia’s high speed broadband coverage. The copper network which is a legacy network, faces many challenges, mainly technological limitations. This is more pronounced for Streamyx customers, whereby the copper network is only able to deliver speeds up to 8Mbps.This requires a longer term and more permanent solution, which will take time to implement and has heavy financial implications.
TM looks forward to a collaborative win-win approach with the Government to effectively address the challenges faced by Streamyx customers, once and for all. In order to do this, TM looks to accelerate discussions with the Ministry and the Malaysian Communications and Multimedia Commission (MCMC) to explore specific funding options, various fit-for-purpose technologies as well as optimising existing industry mechanisms in order to deliver a better broadband experience nationwide.
TM also shared a further update on the progress made with respect to the ongoing upgrade exercise for its Streamyx customers. To date, TM has successfully upgraded nearly 50% of over 340,000 Streamyx customers residing in unifi coverage areas to unifi; at the same price of their current plan. The rest of the 170,000 Streamyx customers who have yet to grab this opportunity for the free upgrade are encouraged to do so. TM aims to complete this unifi upgrade exercise by March 2019.
For Streamyx customers who are currently residing in non-unifi areas, TM is committed to continuously invest in the best fit for purpose technologies to bring high speed broadband to them. Meanwhile, where technology permits, TM is doubling the Streamyx speed at the same price of their current broadband plan. Close to 180,000 of those in non-unifi areas can look forward to receiving this free speed upgrade. TM aims to complete this speed upgrade exercise by December 2018.
Streamyx customers who are eligible for the speed upgrade will continue to be contacted via email and phone. TM urges customers to update their latest contact details i.e., telephone number and email address to facilitate this process. This can be done both via the unifi portal and unifi care app.
However, in order to address the remaining 500,000 Streamyx customers, TM is calling for the discussions with the Government to quickly reach a mutually beneficial outcome for these customers.
TM remains steadfast in its purpose to make life easier for a better Malaysia. In working towards a more definitive solution for an improved broadband experience and a more enhanced digital lifestyle for all its customers, TM would like to acknowledge their trust and loyalty; and values their continued patience and understanding.
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TM reports operational improvement for 3Q2018 despite challenging environment
Key Highlights of 3Q2018: Group Revenue of RM2.95 billion Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at RM941.4 million Group Reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million from impairment of network assets Key Highlights of YTD 2018: Group Revenue of RM8.73 billion Group EBITDA at RM2.55 billion Group Reported Profit After Tax and Non-controlling Interests (PATAMI) at RM83.5 million Announces Revised Dividend Policy Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2018. The Group saw steady operational performance, amidst heightened challenges in its operating environment, namely industry and market challenges impacting its revenue. The Group held revenue steady, at RM2.95 billion in 3Q2018, 0.3% higher from RM2.94 billion in the previous quarter, on the back of higher data as well as other telecommunication related services revenue. Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 3Q2018 grew 11.3% to RM941.4 million as compared to RM845.9 million in 2Q2018 mainly due to lower operating costs. Group Normalised EBITDA, which excludes non-operational items, increased 13.1%, at RM930.9 million. However, due to impairment loss on wireless and fixed network assets, the Group recorded Loss Before Interest and Tax (LBIT) at RM631.8 million for 3Q2018. Without the reported impairment and other non-operational items, the Group’s Normalised Earnings Before Interest and Tax (EBIT) is at RM315.6 million for 3Q2018, a 39.4% increase against Normalised EBIT of RM226.4 million in 2Q2018. Consequently, the Group reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million compared with RM102.0 million Profit After Tax and Non-controlling Interests (PATAMI) in the prior quarter. TM’s core net profit, or Normalised PATAMI excluding non-operational items, stood at RM266.4 million, a 71.0% improvement sequentially. The total capital expenditure (CAPEX) investment for the first nine months of 2018 at RM1.32 billion, or 15.1% of revenue. This is within TM’s full year capex guidance of 19-20% of revenue. By asset type, access comprised 62% of total spending, followed by core network at 15% and the remaining 23% was for support systems. Imri Mokhtar, Acting Group Chief Executive Officer, TM said: “We continue to face various headwinds from competitive market dynamics. Nonetheless, we held revenue steady over the quarter, and saw our cost reduction initiatives bearing fruit, by recording improved operational performance for QoQ and YoY. However, in light of the continued pressure from industry and market challenges and its impact on our revenue thus far, we have taken a prudent view, by undertaking the impairment of our network assets – this resulted in close to a RM1.0 billion impairment loss this quarter.” “The operational improvement in 3Q2018 is testament to the Group’s commitment to the four (4) pillars of our Performance Improvement Programme (PIP 2018) - Revenue Uplift / Preservation, Sustained Profitability, Improved Cash Flow and Increased Productivity that will navigate us through these headwinds. We are rationalising our business, reducing operating costs and focusing our resources on the opportunities that will have the most impact,” Imri elaborated. “We currently have 2.29 million broadband customers and our unifi customer base continues to grow at 1.26 million as at end of 3Q2018 as compared to 1.06 million as at the end of the corresponding quarter last year. In terms of convergence, we saw more customers moving up the value chain with having triple-play services and above, evidenced by our convergence penetration now at 48% of TM’s household penetration compared with 39% this time last year,” he added. “We will continue to strengthen our products and services portfolio and we are stepping up how we aggressively compete in the market, with greater sales and Go-To-Market activities on the ground. We are also working hard to reach more customers with various fit-for-purpose technologies to ensure that everyone can have the benefit of higher broadband speeds and enhanced experience. On top of that, we also have continuous engagements with the Ministry and the regulator to work toward mutually beneficial outcomes - for an improved broadband experience and help build a more balanced and inclusive digital nation, whilst at the same time balancing the business sustainability of the Group and the interests of our other stakeholders.” TM also announced a revised dividend policy which states that the Company intends to distribute yearly dividends of 40 to 60% from its PATAMI. Dividends will be paid depending on overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors. The dividend policy will take effect from the next dividend declaration. “This is a matter of great importance to us. In light of the current operating landscape and after careful consideration of the potential impact on our earnings alongside our efforts to transform the Company to adapt thereto, the Board has determined the review of our dividend policy to support TM’s long-term strategic objectives.” As Malaysia’s Convergence Champion, TM remains committed to fulfilling Malaysians’ digital and communication needs of all customer segments i.e., consumer, SME, corporate enterprises, public sectors, access seekers etc via our business clusters, unifi (consumer & SME), TM ONE (Enterprise and Public sectors) and TM Global (Global and Wholesale). Prospects for the Current Financial Year Ending 31 December 2018 The recent industry challenges and market environment have had major impact to the overall revenue estimates and earnings of TM Group in the financial year. TM anticipates that the challenging environment will persist for both its retail and wholesale segments. In the midst of these challenges, TM will continue to focus towards strengthening performance of its core business and operations.

TM One is services partner and managed services provider of the year
Awarded honours at Cisco Partner Appreciation Dinner 2018 TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) recently was recognised by Cisco as its Services Partner and Managed Services Provider of the Year 2017 for Malaysia at the Cisco Partner Appreciation Dinner. Commenting on the latest recognition, Azizi A Hadi, Chief Executive Officer of TM One said, "It is our great honour to receive these outstanding awards from Cisco. These awards appropriately depict TM ONE's role as the only enabler for businesses to realise the full potential of their digital opportunities. It is also a strong testament to our commitment in providing trusted business solutions to our enterprise and public sector customers leveraging on Cisco's leadership in technology and innovation to drive digitalisation." "Over the years, we have established many collaborative efforts and TM One will continue to leverage on strategic investments with Cisco towards delivering seamless digital experience and integrated business solutions for business communication needs, true to TM's vision of "Making Life and Business Easier, for a Better Malaysia"," Azizi added. Meanwhile, Naveen Menon, President of Cisco ASEAN, stated, "Malaysia is one of the most digitised nations in Southeast Asia. We are excited to see Cisco technology growing and delivering the digital journey for governments, large enterprises and small / medium businesses across Malaysia. Our continued partnership with TM One is critical for us to further drive the digital transformation of all industries." Through TM One, TM enables its customers and partners' digital journey with seamless vertical and horizontal solutions toward their digital transformation. Positioned as the only enabler for businesses to realise their full potential of their digital opportunities, TM One offers solutions based on Cisco's leading technology in the areas of Networking, Collaboration, Security, Wireless and Mobility as part of its portfolio in helping Malaysian enterprises effectively grow their digital business at an effective cost. TM One is also Cisco's Certified Gold Partner and the first partner to sign as the Managed Services Provider for Cisco Meraki in Malaysia. For more information on TM One and its product offerings, log on to www.tmone.com.my/

TM inculcates creativity and interest in science among students
Science made easier with TM Nano Maker Kit Learning process: Briefing session on the usage of Nano Maker Kit where students can connect the Kit to their smart devices via Bluetooth to collect experiment results data. Thrilled: Participating students conducting an experiment on force, acceleration and momentum of a car crash. In action: An outdoor experiment on water rocket launching takes the interest of the students as they measure the rocket acceleration using Nano Maker Kit. Telekom Malaysia Berhad (TM) under its Corporate Responsibility (CR) initiatives, recently collaborated with its partner, Creative Minds - a company specialised in Science, Technology, Engineering and Mathematics (STEM) subjects – to conduct a programme called TM Nano Maker Kit, involving several schools around Kuala Lumpur and Selangor. This innovation-oriented programme is an initiative by TM to inculcate interests in science and technology among the students. The programme also marked its continued commitment in promoting education exc ellence and empowering the learning of STEM in the classroom. Commenting on the programme, Izad Ismail, Head of Corporate Responsibility & External Stakeholder Management, Group Brand and Communication, TM said, “This programme requires students to innovate and create activities related to science and technology. Students in all the 10 participating schools around Kuala Lumpur and Selangor were indeed very creative. They have the potential and capabilities to innovate but they need proper guidance to express the innovation. We hope that the training and learning process shared with them during this programme will encourage them to be even more creative and excel in Science and Technology subjects.” TM Nano Maker Kit programme provides a platform for the students to collect and analyse experimental data conducted in Physic and Mathematics. TM Nano Maker Kit also aimed to boost the students' abilities through hands-on activities which involve the usage of a technology known as ‘Data Logging’ to collect real-time data for the students to analyse. There are many parameters and types of data that can be tested using the TM Nano Maker Kit, including temperature, altitude, speed, weather, acceleration, pressure, light intensity and magnetic fields. The TM Nano Maker Kit saw participation of more than 300 students from 10 schools around Kuala Lumpur and Selangor. The schools involved, which served as the pilot group were SMK Dato’ Onn, SM Sains Banting, SMK Keramat Wangsa, SMK Batu Laut, SMK Bandar Tasik Selatan, SMK Bandar Seri Putra, SMK Bukit Kucing Tengah, SMK Saujana Impian, SMK Dengkil and MRSM Sungai Besar.