TM is still assessing the impact of the MSAP structure on the group and, as such, is unable to provide any guidance for the its expected financial performance for 2023 said Imri.
PETALING JAYA: Telekom Malaysia Bhd
(TM) expects its commercial contracts with other telecommunications companies to be higher than the rates under the mandatory standard for access pricing (MSAP).
“While we do expect the rates of these commercial contracts to be lower than what they were previously, we do believe that they will be higher than what the MSAP rates will be.
“This very much depends, as we finalise the requirements of the various telcos on the infrastructure services that they will be leasing from TM,” said group chief executive officer Datuk Imri Mokhtar during an online media briefing yesterday.
In February, the telecommunications industry’s regulator had released the new wholesale access pricing as per the MSAP structure.
Imri said TM is still assessing the impact of the MSAP structure on the group and as such, is unable to provide any guidance for the its expected financial performance for 2023.
“We are still assessing or monitoring this. We will be reviewing the commercial contracts that are currently in place with the regulators and the telcos.
“Until that is finalised, which we expect to happen by the first half of this year, TM will not be able to provide the guidance or the outlook for 2023,” he said.
However, Imri pointed out that TM would continue to strengthen its core businesses and invest in new growth areas beyond connectivity.
“Against the backdrop of higher technology costs, industry developments in terms of regulatory policy and 5G, we are mindful of general headwinds that may lead to slower market growth.
“This will come from more measured spending by customers, businesses and possibly the government as well,” he said.
Imri added that TM will continue to leverage on Unifi’s three million subscriber base and provide more value-added services such as 5G mobile content.
“We are also committed to enhancing the digital business solutions for micro, small and medium enterprises (MSMEs).
“These include solutions such as cloud, eCommerce hub as well as device security solutions that are packaged together with Unifi broadband offerings,” he said.
Imri also pointed out that TM One, the group’s business-to-business arm, would continue to deliver digital connectivity, smart services, cybersecurity and data centre solutions.
“To accelerate the digital transformation journey of enterprises as well as the public sector, TM One, together with our cloud arm Credence, will continue to drive the adoption of cloud solutions for the country,” he said.
Imri said TM Global, the group’s wholesale domestic and international business arm, is aligned with the aspiration to position Malaysia as a digital hub in Asean.
“Building on our network of submarine cables, content delivery network and other digital infrastructure, TM Global has been expanding its service portfolio.”
He said this was not limited to only serving telcos but also other large hyperscalers as well as over-the-top players with connectivity and customised digital solutions.
Imri also expects the 5G take-up from TM’s customer base to increase as 5G coverage in the country expands in 2023.
When tabling the revised Budget 2023 last month, Prime Minister Datuk Seri Anwar Ibrahim said Digital Nasional Bhd’s 5G coverage had reached 50% in populated areas and is targeted to hit 80% by year-end.
“At TM, we are certainly looking forward to that accelerated 5G rollout,” said Imri.
