TM to complete broadband speed upgrades by year-end


  • Telcos
  • Thursday, 27 Apr 2017

KUALA LUMPUR: Telekom Malaysia Bhd (TM) aims to complete broadband speed upgrades by year-end in line with the government’s Budget 2017 mandate to double broadband speeds.

Speaking after the group’s AGM yesterday, TM deputy CEO Datuk Bazlan Osman said to date, 22% or 640,000 Unifi customers have had their broadband speeds upgraded.

“The broadband speeds will be upgraded in phases according to network availability.

“This service upgrade has no major impact on our average revenue per user (arpu) as the higher broadband speeds will entice more subscriptions to our value added services, such as security and surveillance, and premium channels on HyppTV,” he said.

TM expects 3%-4% growth in its revenue for the financial year ending Dec 31, 2017, driven by its convergence services.

Bazlan added that the convergence services entails going beyond connectivity, with Internet data services and value added services like cloud storage and management.

“We have just established our Iskandar Puteri Data Centre (IPDC), and we are going to complete another data centre in the Klang Valley by year-end, if not, early next year.

“The group’s earnings before interest and taxes (EBIT) is expected to remain the same for this year, as we are currently in investment mode.

“We are investing in 4G LTE, value added services, data and data centre, cloud services, Unifi, as well as marketing activities for webe,” said Bazlan.

In addition, TM is targeting to have 8%-10% of its household base to subscribe to its mobile service webe.

The group has already secured 2% of its 2.66 million customer base as webe users.

Bazlan explained that the strategy behind webe was not for it to solely be a mobile operator.

The group has launched webe for small and medium enterprises (SMEs) and will later extend webe to larger companies and ultimately the government.

TM expects to share the number of households and businesses subscribed to webe in the announcement of its first quarter results soon.

TM has allocated capital expenditure (capex) amounting to 30%-35% of group revenue.

Last year TM spent 27.5% of its revenue on capex, which translates to RM3.3bil.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Next In Business News

Zafrul: Strict MCO remains under phase two of NRP
Govt remains committed to help those adversely affected by pandemic
UK's Morrisons rejects takeover proposal from CD&R
Wall St week ahead - Fed shift causes rally in value stocks to wobble
Bank stocks lurch into ranks of June’s worst as rally unravels
Fernandes: Aviation industry likely to return to normal in 2022
KPower energises global energy, solar market
MEF: Well-coordinated enforcement activities on businesses crucial
Mustapa: 12MP includes National Recovery Plan
Maybank IB clinches top awards at FinanceAsia Country Awards, Alpha SEA

Stories You'll Enjoy


Vouchers