PUTRAJAYA: Telekom Malaysia Bhd (TM) will spend about RM40mil on infrastructure to develop a Malaysian-based Internet Protocol (IP) hub, group chief executive officer Datuk Abdul Wahid Omar said.
This would be done through a partnership with Verizon Business, a US-based global firm that provides communications and information technology.
The investment would allow TM to set up a physical node in Cyberjaya in June, which could be jointly operated by TM and Verizon, he told reporters after the signing of a memorandum of understanding with Verizon yesterday.
“This partnership will allow cost savings on international bandwidth connectivity for TM and other Internet service providers (ISP) as Internet queries and traffic are contained within the country,” he said, adding that at present a large portion of the Internet traffic from Malaysia went out of the country before returning here.
He also said currently most content developers hosted their websites in the US, but with the new global hub, it would be in their “best interest” to utilise the hub.
“This collaboration will also attract new opportunities for Internet peering by major regional Tier-1 ISPs from South Korea, Japan, China and India to Malaysia, to further establish the country as a leading IP hub,” he said.
Wahid also said the hub would be able to attract foreign ISPs from Indonesia and Sri Lanka, where TM had a presence.
On TM’s plans to invest in Vietnam and Laos, he said these were competitive markets, but the group was constantly seeking opportunities in these countries.
The Verizon Business IP network is one of the largest IP networks in the industry and one of the few universally recognised Tier-1 networks in the world.