08 Mar 2018
TM and Huawei seal strategic partnership to further enhance malaysia’s broadband reach and digital economy
As pioneers in the rollout of high speed broadband in the country, Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) are once again collaborating for the betterment of broadband and digital economy for the nation. The companies recently signed a Memorandum of Understanding (MoU) for both parties to work hand-in-hand in multiple collaboration activities, leveraging on each other’s core expertise and capabilities to accelerate fibre broadband network reach, in line with the Government’s move to drive Malaysia’s digital economy.
The collaboration will leverage on the combined strengths and capabilities of both companies to further accelerate national broadband reach and leap-frog the adoption of a connected digital lifestyle and the Internet of Things (IOTs) amongst Malaysians. Via the strategic partnership, both TM and Huawei will play a more proactive developmental role in providing ready infrastructure and ecosystem to support the nation’s growth.
The MoU was signed by Datuk Bazlan Osman, Executive Director / Deputy Group Chief Executive Officer, TM and Foo Fang Yong, Vice President of Huawei Technologies (M) Sdn Bhd. The signing ceremony was witnessed by Dato’ Sri Mohammed Shazalli Ramly, Managing Director / Group Chief Executive Officer, TM and Baker Zhou, Chief Executive Officer of Huawei Technologies (M) Sdn Bhd.
Commenting on the partnership, Dato’ Sri Mohammed Shazalli Ramly said, “We are indeed excited to be working hand in hand with a leading global name such as Huawei to accelerate the offering of digital services and solutions to the nation thus further support the Government’s aspirations of digital economy. As the trusted partner in key nation-building initiatives, TM ensures the safety and security of the nation's strategic and critical infrastructure, and in accelerating the broadband reach for all Malaysians. We believe that strategic collaborations such as this MoU is yet another testament of our role as the country’s key enabler for the national communications infrastructure.”
Meanwhile, Baker Zhou said: “Telekom Malaysia and Huawei have been working hand-in-hand for 15 years. In the past 15 years, we have worked together to connect more people than ever before. We are now at the crossroads of digital transformation. With today's MoU, we can share more, innovate better, and work more closely than ever before. Huawei will fully support TM’s vision of “Making Life and Business Easier”, and will work together with TM to building a better connected and intelligent Malaysia.”
The inking of the MoU marks the parties’ commitment to collaborate to deliver digital solutions for businesses and public sector, explore innovative solutions for network optimisation and implement initiatives that will capture TM customers’ share of moments.
The MoU also envisages other areas across TM Group of Companies including network and technology planning, exploration of innovative business model for unifi, transformation of Information and Communications Technology (ICT) to enhance overall efficiency of TM’s IT and Business support platform, smart device cooperation, establishment of Multimedia University (MMU) Smart Campus model and knowledge sharing on innovative technology. According to the MoU, Huawei will share its extensive global best practices to help TM capitalise emerging opportunities quickly through big data aided network design and deployment, intelligent Smart Capex solution to respond fast to TM customer needs, and simplify business engagement between both organisations via inter-connecting IT processes.
Through this strategic partnership, TM aspires to pursue the innovation and commercialisation of technology which includes Internet of Things (IoTs), cloud technology and artificial intelligence towards delivering digital experience to more Malaysians nationwide. TM will also explore alternative wireless technology deployment to further expand high speed broadband reach across Malaysia; bridging the digital divide and meeting the Government’s objective of a truly connected society.
The MoU is subject to a definitive agreement to be signed between the parties in specific areas. Further announcements will be made in due course, as and when appropriate.
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TM appoints Dato’ Mohd Rais Azhar as the new CTIO
Bids farewell to Dato’ Rafaai Samsi on his retirement after 40 years of service in TM Telekom Malaysia Berhad (TM) today announced the appointment of Dato' Mohd Rais Azhar as its new Chief Technology & Innovation Officer (CTIO) with effect from 18 February 2018, following the retirement of Dato' Rafaai Samsi as the CTIO of TM on 14 February 2018. Prior to this, Dato' Rais was the Deputy CTIO, and in addition to his role as the new CTIO, Dato' Mohd Rais remains the Chief Information Security Officer of TM - the position that he has served since 2017. Dato' Mohd Rais joined TM in 1988, and 2018 marks his 30th year with the Company. As TM's CTIO, he will be responsible for Network, IT and overall technical delivery, fulfilment and assurance for TM Group. In addition, Dato' Rais will strategise, formulate, direct and lead the implementation and operations of Information Security organisation. This covers Information Security Strategy, Architecture, Governance, Risk, Compliance, Development, Threat Intelligent and Operations in order to ensure the Confidentiality, Integrity and Availability of information assets protection for TM Group. Commenting on the new appointment, Dato' Sri Mohammed Shazalli Ramly, Group Chief Executive Officer, TM said, "We are pleased to congratulate Dato' Mohd Rais on his promotion as TM's CTIO. As a TM home grown leader, he has the experience and expertise to elevate innovation at TM in the era of digital natives." Dato' Rais has vast experience in Malaysia's telecommunications industry and he was also one of the pioneers in establishing Corporate Information Superhighway (COINS) team, providing the first TM's Frame Relay service back in 1997. In addition, Dato' Mohd Rais has been involved in and actively led numerous transformation projects in TM including both High Speed Broadband (HSBB) projects. Meanwhile, Dato' Sri Shazalli also expressed his utmost gratitude to Dato' Rafaai Samsi for his dedication, contribution and loyalty to the TM Group during his tenure, "We would like to express our highest gratitude to Dato' Rafaai for all that he has done for TM. In the 40 years that he has served TM and the nation, he has engineered not just our technical transformation, but more importantly, our transformation from being a network-oriented company, to one that is service-oriented." "As the former CTIO, Dato' Rafaai's behind-the-scenes contribution and efforts towards TM's success goes beyond Information Technology & Network Technology. The change that he pioneered at Customer Experience has been transformational. He has changed the mindset of Warga Keluarga TM to become even more customer-centric. This is certainly in line with our consistently above global telco average Customer Satisfaction Measure (TRI*M) index scores over the years - a testament to our concerted efforts in improving customer experience. This laid the foundation of TM as Malaysia's Convergence Champion and strengthens our brand promise of "Life Made Easier"," he added. "We are grateful for not just his professional and technical contributions to the Group, but also his efforts in nurturing talent. Dato' Rafaai has been a mentor and coach to many people in TM that are now among our current crop of leaders. The management and Warga Keluarga TM are immensely grateful to Dato' Rafaai for his leadership and all his contributions to the Company. We would like to take this opportunity to wish him all the best for his future endeavours," Dato' Sri Shazalli concluded. Profiles Dato' Mohd Rais Azhar Dato' Mohd Rais Azhar, aged 54, was appointed as Chief Technology & Innovation Officer (CTIO) and Chief Information Security Officer (CISO) effective 14 February 2018. A Bachelor of Science (Computer Science) Degree graduate from Indiana State University, USA; Dato' Mohd Rais is also the Chief Information Security Officer of TM since 1st January 2017. Prior to this, he was the Deputy Chief Technology & Innovation Officer of TM in 2017 and was appointed as Vice President of Network Architecture and Technology in 2010. Dato' Rais is the Chairman of TM Technical Security Council and a board member of Telekom Research & Development Sdn Bhd, a wholly owned subsidiary of TM. In 2017, Dato Rais attended Leading Digital Business Transformation programme at IMD Business School in Lausanne, Switzerland as part of his executive education. Dato' Rafaai Samsi Dato' Rafaai holds a Bachelor of Science (Hons.) in Electronic Engineering from Brighton University, United Kingdom and a Masters in Communications Management from the University of Strathclyde, United Kingdom. He started his career in telecommunications with the then Jabatan Telekom Malaysia in 1978. He was later appointed CEO of TM - NTT Communications Corporation's joint venture company in July 1997 before returning to TM in July 2001, where he was assigned as General Manager of a number of divisions including State Business Operations, Market Development and Domestic Carrier Business Division. He was then appointed Vice President, Marketing and Sales for the Wholesale segment in October 2006 and subsequently promoted to Executive Vice President to lead the Wholesale Line of Business on 1 July 2008. Dato' Rafaai was assigned as Deputy CTIO to run the day-to-day operations and turn-around initiatives of the IT and Network Technology Division since January 2013. He was assigned as Head of Customer Experience Management and Transformation reporting directly to TM Group CEO on 1 July 2014 and at the same time, remained as the Deputy CTIO. He was also the Chairman of Service Management Council (SMC) responsible for TM's overall customer service management. Before his retirement from TM, Dato' Rafaai was TM's Chief Technology & Innovation Officer (CTIO) and Chief Customer Experience Officer since 18 February 2017.
TM collaborates with Huawei to accelerate digital transformation of enterprise and public sectors in Malaysia
Telekom Malaysia Berhad (TM) through its business solutions arm, TM ONE, recently inked a Memorandum of Collaboration (MoC) with Huawei. This MoC is in pursuant to the Memorandum of Understanding (MoU) signed between TM and Huawei in March 2018 which outlined the various initiatives between the Parties to promote innovation, develop go-to-market strategies, enhance skills and capabilities as well as to improve each other's products and services. As both TM ONE and Huawei intend to play a more proactive developmental role in providing ready infrastructure and ecosystem to support the nation's growth, specifically to further address digital transformation opportunities in the enterprise and public sectors in Malaysia, this collaboration would allow both companies to further accelerate the upcoming digital transformation era amongst Malaysians by leveraging on the combined strengths and capabilities of each other. The MoC was signed by both companies during the Mobile World Congress (MWC) Shanghai 2019. Commenting on the collaboration, Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer of TM said, "We are excited to be working hand in hand with a leading global name such as Huawei in a strategic partnership programme aimed at addressing the digital transformation opportunities in the enterprise and public sector in Malaysia. This intended collaboration would strengthen our position as the enabler of Malaysia's Digital aspirations with the deployment of applications and solutions for Malaysian homes, businesses and beyond, as encapsulated by our vision, "Making Life and Business Easier, for a Better Malaysia". Meanwhile, Tian Feng, the member of Huawei Supervisory Board/Senior Vice President said: "Today collaboration between TM ONE and Huawei is further deepened on the basis of last year strategy partnership MoU, and it will help both companies to advance into the future. This collaboration is based on long-term mutual trust between the two organisations and more importantly, complement technology capabilities and strategy for both parties in the enterprise business market. Huawei is confident that it can leverage its advanced technologies such as cloud computing, Big Data, Internet of Things (IoTs), and Artificial Intelligence (AI) to complement TM ONE's venture into the market. Under the MoC, both parties agreed to jointly promote cooperation through a possible joint account planning and mapping exercise of available opportunities, future joint solutioning as well as joint creation of customer value proposition. The focus will be on enterprise segments such as Energy & Utilities, Oil & Gas, Transportation, Public Sector, Education, Manufacturing, Commercial and/or Real Estate in the areas of, amongst other, Cloud, Network, Storage, High Performance Computing, Artificial Intelligence (AI), Internet-of-Things (IoTs) and Software Defined Network. "TM has always been at the forefront of each telecommunication technology evolution in the nation. We also have a long and proven track record in nation-building, coupled with the right expertise and experience to catapult Malaysia into a Digital Nation. This collaboration demonstrates our commitment to realise the national agenda," Dato' Noor Kamarul Anuar concluded.
TM on course to accelerate convergence and empower digital to expedite national broadband adoption; continues value creation
Key Highlights of Financial Year (FY) 2017 vs FY 2016: Performance FY 2017vs FY 2016 o FY 2017 Group Revenue at RM12.09 billion o Group Operating Profit (Earnings Before Interest and Tax (EBIT)) at RM1.09 billion; whilst Normalised EBIT was RM1.19 billion o Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion o Healthy Group Reported Net Profit (PATAMI) growth of 19.8% at RM929.7 million; Normalised PATAMI growth of 1.8% at RM863.2 million o Delivers dividend commitment - declares 2nd interim dividend of 12.1 sen per share or RM454.7 million; total dividend payout stands at 21.5 sen per share or RM808.0 million o Sustained customer satisfaction with Customer Satisfaction Measure (TRI*M index) score of more than 73, above global telco average of 66 Operational Highlights o Consolidated unifi brand for converged lifestyle services o Achieved more than 1.1 million unifi (Home and SME) customers o Launched unifi Mobile #BEBAS and mobile@unifi app - unifi Mobile TM Household penetration at 9.8% Telekom Malaysia Berhad Group of Companies (TM Group) today announced its results for the financial year ended 31 December 2017. The Group’s 2017 performance was mainly driven by Internet and multimedia services. Group revenue stood at RM12.09 billion on the back of higher internet revenue contribution, which rose 8.3% against FY 2016, to RM3.97 billion; contributing 33% of total revenue. Speaking at the press conference after announcing the Company’s 2017 full-year financial results, Dato’ Sri Mohammed Shazalli Ramly, Group Chief Executive Officer, TM said: "2017 was a challenging yet transformational year for TM. We stayed focused on our Key Performance Indicators (KPI) and Key Happiness Index (KHI), driven by our Perfexe 10 aspirations. The holistic Perfexe 10 execution approach drove us to implement our high priority plans whilst accelerating convergence and empowering digitisation. Perfexe 10 simplifies and serves as a guide to all of our business operations while we closely track the progress of each plan and evaluate specific initiatives to ensure we execute in a timely manner. Although Perfexe 10 is a long term plan, we are pleased by the progress of each business thus far; where we have rebranded our business clusters, with unifi representing lifestyle offerings for homes, individuals and Small Medium Enterprises (SMEs); TM ONE offering end-to-end converged solutions to business verticals in the enterprise and public sector space; and TM GLOBAL positioned to accelerate the digital opportunities of domestic and international telecommunications.” Dato’ Sri Shazalli went on to comment, “Overall, TM was resilient in a challenging environment, delivering healthy revenue and profitability. We are pleased with the market’s response to all the initiatives that we implemented during the year. We saw strong customer traction in the home and mobile space. The recently launched unifi mobile #BEBAS, broke away from convention - where our customers are now liberated to use our mobility service relevant to their needs - and fully on digital, showed very encouraging performance.” “TM Group remains at the leading edge of enabling the country’s digital economy via our broadband deployment for the nation and in bridging the digital divide. In our unique role as protector of national interest, the Group’s achievements thus far have been numerous. Through our products and services, we have delivered countless benefits to not only our customers, but all Malaysians. We now have a converged nationwide coverage of unifi which includes broadband, mobility and wifi. As at end 2017, we recorded a total broadband customer base of more than 2.3 million customers. Our main broadband service offering, unifi for home and SMEs achieved more than 1.1 million customers, and unifi Mobile achieved 9.8% penetration of TM’s households. We have also been fully supportive of the Government’s objective towards improving the affordability, reach and quality of broadband services. In 2017, under the implementation of the Broadband Improvement Plan (BIP), we have successfully enhanced Malaysian’s digital experience by doubling the broadband speed at the same price to approximately 1.0 million Malaysian homes and SMEs. We also launched unifi edu pack for the youth, specifically students at institutions of higher learning and unifi e-biz pack for e-entrepreneurs. Earlier this year, we launched wifi@unifi app that enables all Malaysians to access the Internet via wifi. The app locates wifi hotspots and connects users to over 9,400 hotspots across Malaysia. To further expand our reach to customers, TM ONE collaborated with a renowned restaurant chain to provide high-speed broadband services and solutions including WiFi access points to more than 1,000 of their outlets nationwide. In addition, TM GLOBAL plays the role of positioning Malaysia and TM as the ideal gateway for the world to the ASEAN region; and submarine cable expansion is a key element in achieving this. Three (3) new submarine cable systems namely Malaysia-Cambodia-Thailand (MCT), Nusantara Gateway (NuGate) and Sistem Kabel Rakyat 1Malaysia (SKR1M) have been developed and were completed last year. TM GLOBAL has also set up a new international Point of Presence (PoP) in Marseilles, France, for service providers who need connectivity to Europe. To further enhance our customers’ enjoyment of our wide array of entertainment, and in support of the development of the Malaysian football scene, we are bringing the proud moments of the national football league to all Malaysians and football fans as the title sponsor for “unifi Liga Super Malaysia” and “unifi Piala Malaysia” as well as co-sponsor for Piala FA until 2025. Our customers can now enjoy exciting football content via unifi TV and across all screens, accessible via unifi PlayTV app,” he elaborated. Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM3.58 billion, lower by 5.6% against last year primarily due to higher operating costs mainly related to mobile services. After excluding non-operational items such as foreign exchange loss on trade settlements and placements, Normalised EBITDA stood at RM3.67 billion, lower by 3.9% compared to 2016. Group EBIT for FY 2017 was at RM1.09 billion, 5.3% lower against last year from the higher operating cost despite reduction in depreciation and amortisation charges. Stripping off the foreign exchange loss on international trade settlements and placements and loss on disposal of financial assets, Group Normalised EBIT stood at RM1.19 billion, 0.2% higher than the previous year. Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion, against RM918.5 million last year. TM Group reported a healthy 19.8% growth in Group Reported Profit After Tax and Non-controlling Interest (PATAMI) against FY 2016 at RM929.7 million as compared to RM776.0 million recorded in FY 2016 primarily due to foreign exchange gain on the Group’s borrowings in FY 2017. Excluding this, Group Normalised PATAMI was 1.8% higher at RM863.2 million. The total capital expenditure (CAPEX) for FY 2017 as a percentage of revenue was 22.8%, amounting to RM2.76 billion, which was lower than guided in 3Q2017, due to internal re-prioritisation of projects. By asset type, access comprised 42% of total spending, followed by core network at 34% and the remaining 24% was for support systems. “At the same time, it is gratifying to see that our focus on customer experience continues to place us amongst the trusted brands in Malaysia. In 2017, sustained customer satisfaction resulted in our achieving Customer Satisfaction Measure (TRI*M index) score of more than 73, exceeding the global industry’s average of 66 for the seventh consecutive year,” added Dato’ Sri Shazalli. In line with its dividend policy, the Group is declaring a second interim single-tier cash dividend of 12.1 sen per share or RM454.7 million for the financial year ended 31 December 2017. Together with the 1st interim dividend of 9.4 sen per share amounting to RM353.2 million which was paid on 13 October 2017, the total dividend payout is 21.5 sen per share, or RM808.0 million. The second interim dividend will be paid on 13 April 2018. Accelerating Convergence To Accelerate Convergence, the Group has consolidated its service brands into a single identity. With this strategic repositioning, unifi is now the one and only brand in Malaysia that offers truly comprehensive suite of converged services – home, mobile, wifi and TV, across all segments - fixed, mobile and nomadic - anytime, anywhere on any device; reflecting what true convergence means to the Group. On the business front, the Group has also converged its service offerings for enterprise and public sector customers, presenting a comprehensive set of solutions to meet all their business needs. With the consolidation, TM ONE is now the one and only trusted digital partner and enabler for enterprises and the public sector to fully realise their digital opportunities. The new business cluster enables private enterprises and government agencies to enhance the way they work, with ‘Consider IT Done’ as its driving force and attitude. In 2017, TM ONE placed more emphasis on an approached termed as “verticalisation”, converging customised vertical or industry relevant solutions, to unleash their full digital potential. Top-priority verticals have been identified for immediate revenue generation. The Group foresees higher traction in its Data Centre business once its Klang Valley Core Data Centre (KVDC) is fully completed later in 2018. Together with the already running Tier III Iskandar Puteri Core Data Centre (IPDC), the inter-connected data centres form a Twin Core Data Centre solutions for high redundancy which are connected via high speed fibre optic connectivity, designed for higher fault tolerance and enhanced security. The Group also foresees potential for new growth opportunities in TM GLOBAL. TM GLOBAL’s focus moving forward is to continue accelerating its business growth by generating revenue from other than connectivity services. It also plays a vital role in expanding content localisation initiatives by bringing international content locally to minimise outbound bandwidth and improving customer experience. It enables easier access for businesses, at more competitive pricing. On the international front, we also connect the world via domestic, regional and global submarine cable development and investments with a total of twenty (20) submarine cables with fibre-route of more than 190,000 km around the globe to date. Empowering Digital Empowering Digital entails digitisation (driving productivity via digital) and digitalisation (monetisation of digital businesses), which combined, will enable TM Group to reap the full benefits of improved productivity, enhanced customer experience and monetisation of opportunities presented. In September 2017, TM Group launched unifi.com.my web portal, a single all-in-one customer service absolute portal for interaction on unifi related services, enabling customers to order or upgrade their services, check their usage, pay bills, troubleshoot online as well as chat in real-time with our agents for assistance. Under its digital empowerment pillar, the Group also launched hub@TM, a one-stop centre for all apps developed for Warga Keluarga TM. A number of new digital applications that serve both its customers as well as employees were developed such as FLOW - an employee engagement application that facilitates better collaboration and responsiveness; GROW - an enhanced tool for employee performance evaluation and assessment; HERO – a complaint support escalation app for Warga Keluarga TM; HELO - a digital onboarding app to kick start new hires’ employment journey; TMmedic - TM Group’s healthcare benefits app; EYES – a tool for employees to alert network team on occurrences that may potentially result in service disruption. For customers, several apps have been developed to enhance their overall unifi experience such as wifi@unifi - a unifi Wifi locator app; TM Wifi Optimiser – a tool to boost customers’ WiFi performance; mobile@unifi - a gateway to anything unifi Mobile service – from add-ons #pilihapasaja, to reloading #bayarbilabila, purchasing data, calls and SMS #kredittakmati as well as customer support; and unifi PlayTV - an app version of unifi TV for viewers to enjoy world class entertainment and award winning shows, anytime and anywhere. The introduction of these apps is in tandem with TM’s aspiration of ‘Going Digital’ as the Company moves beyond connectivity into new value added digital and smart services. It is part of the Group’s holistic approach covering customer experience, process optimisation and new business opportunities which entails building a digitally aware and smarter workforce. This is in line with its goal to accelerate the achievement of its strategic goals of Accelerating Convergence and Empowering Digital via “Perfexe 10”. 2018 and mid-term Headline Key Performance Index (KPIs) Guidance TM also announces its Headline KPIs for 2018 and the mid-term target respectively. They are revenue growth of 3.5% to 4.0% in 2018, EBIT to maintain 2017 EBIT RM and Customer Satisfaction Measure of 74. For the mid-term, the Headline KPI is revenue growth of 3.5% to 4.0%, EBIT growth of 3.5% to 4.0% and Customer Satisfaction Measure of 75. Comparison: Quarter-on-Quarter (4Q2017 vs 3Q2017 Results) The 4Q2017 saw Group Revenue at RM3.20 billion, growth of 8.8% QoQ. Group EBITDA was higher by 1.7% at RM893.5 million QoQ on the back of the higher operating revenue. Group EBIT rose 3.4% at RM270.3 million QoQ whilst Group Reported PBT grew 30.6% at RM307.6 million. Group PATAMI increase 30.8% to RM277.0 million compared to RM211.8 million in the preceding quarter. Prospects for the Next Financial Year Ending 31 December 2018 The Group foresees sustainable performance in 2018, despite competition and challenges. This is driven by the new execution model which prioritises its plans towards delivering relevant converged digital lifestyle services and end-to-end business solutions to all its customers.
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