TM's share price sees knee-jerk reaction

AT a time when valuations of Internet-based companies are hitting the roof, Telekom Malaysia Bhd’s (TM) move to buy into the country’s largest standalone fixed wireless broadband player makes sense.

While the lofty values ascribed to companies making applications like WhatsApp and Candy Crush are nowhere near the RM560mil that TM is forking out for Packet One Networks (M) Sdn Bhd (P1), one fact holds true: these and other increasingly popular Internet-based applications ride on the digital broadband highway.