Telekom sees higher revenue with higher speed, faster network

  • Business
  • Friday, 13 Jul 2018

From Right: Datuk Bazlan Osman, acting group CEO, TM and Imri Mokhtar, executive vice president, Unifi, TM make a conference call to media members about Unifi's new broadband plans.

KUALA LUMPUR: TELEKOM MALAYSIA BHD (TM) will be able to grow its revenue with wider access and higher speed to its broadband network from the previous expectation that revenue would fall in 2018.

Acting group chief executive officer Datuk Bazlan Osman said revenue improvements would come from giving better value to customers on the day the telecommunications firm announced it was increasing broadband speeds by up to 10 times for home users in stages from Aug 15.

A larger migration of users to its Unifi service could also see cost improvements, he said.

“We have plans on how to better manage under the performance improvement plan since we are giving better value to our customers. The first one is in terms of revenue uplift: you have to note that revenue is not only coming from Unifi but from (other areas) such as TM One: from the banking sector, from healthcare and education,” Bazlan told the media yesterday.

“TM One contributes some RM5bil of our RM12bil revenue, we will continue to work on this. Another area is on wholesale offering; as you know. The other LTE and 4G service providers will increasingly look to us to provide the platform. So, this is an opportunity for us,” Bazlan added.

TM had guided the market previously that for 2018, its revenue would be either flat or dip by 1% from a previous forecast of growth between 3.5% and 4%.

TM shares were up six sen to RM3.46 yesterday after announcing a mammoth boost in Internet speeds for home users.

On Unifi, Bazlan hopes that the new plans would lead to a higher take-up rate among consumers, which would then improve its revenue outlook.

“There are about 340,000 Streamyx customers in Unifi areas. So, we plan to have more and more of them moving up to Unifi and (we can minimise) in terms of maintaining our network on the ADSL or copper in these areas,” Bazlan said.

“Currently, we are maintaining copper and fibre in these areas. For example, if you take Bangsar, we have both copper and fibre since we have our Streamyx (ADSL) customers in Bangsar. So, just imagine if all Bangsar residents or in the Klang Valley, if all of them move to Unifi, we do not have to maintain our copper network and this will reduce our cost,” he added.

Bazlan noted that this was part of its plans to improve productivity and “sweat” its assets.

“We hope that this would be able to mitigate the new plans that we have introduced from today onwards because we want our customers to move up to fibre and Unifi so that we will have lesser copper to manage and maintain,” he said.

Among other measures, TM also plans to reduce its capital expenditure plans from the high 20s to the low 20s as a percentage of its revenue.

“In areas where the other telcos have fibre, we will be the access seeker. We don’t have to do it ourselves. We don’t have to put our own fibre network there,” he said.

Bazlan said that these planned measures would help it reduce cost, improve cashflow and reinvest the extra cashflow into growth areas such as WiFi and LTE/4G.

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