14 Feb 2022
TM to enhance customer experience with 2600 MHz spectrum
Accepts offer from MCMC for total applicable fee of RM37 million over five (5) years
Telekom Malaysia Berhad (TM) reaffirmed its commitment to enhancing customer experience, capacity and value with the 2600 MHz spectrum band acquired from the Malaysian Communications and Multimedia Commission (MCMC) recently.
TM accepted the offer from MCMC for a 20 MHz spectrum block of the 2600 MHz spectrum band through its subsidiary, Webe Digital Sdn. Bhd. (“webe”). The allocated block of 2575 MHz to 2595 MHz is effective from 1 July 2022, with total applicable fee of RM37 million over a period of five (5) years and according to the following components:
- Upfront fee of RM7,060,000.00
- Annual fee of RM5,984,000.00 to be paid by 15 December each year
TM’s Group Chief Executive Officer, Imri Mokhtar said that the spectrum provides substantial value and leverage to TM as a leading convergence provider. “The increased capacity will enable TM to provide seamless fixed and wireless access, and content to its retail and enterprise customers at home, office or on the move.”
“The acceptance of this spectrum offer is also aligned with our future direction in embarking into a dynamic digital space. With our strong and extensive fibre infrastructure, the spectrum will enable future expansion of telecommunication services to customers, for an end-to-end converged experience,” Imri added.
“We would like to express our sincere appreciation to the Ministry of Communications and Multimedia as well as MCMC for extending the spectrum allocation to TM.”
The allocation of the spectrum also allows TM to support the national agenda in delivering extensive telecommunications coverage with high service quality, especially through the Jalinan Digital Negara (JENDELA) and the Malaysian Digital Economy blueprint (MyDIGITAL).
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TM BAGS TOP TECH AWARD FOR ITS DIGITAL WORKFORCE SOLUTION
Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM) wins the “Digital-Utilities” Award for its smart workforce management solution known as FORCE at the recent Malaysia Technology Excellence Awards 2023 (MTEA), organised by the Asian Business Review. This is the seventh award received by TM R&D from MTEA in the last five years, spotlighting its role in accelerating the use of advanced technology and mobile-first approach to spearhead industrial productivity and operational efficiencies as Malaysia transitions into a digital economy. Through cross learnings from deployment within the TM ecosystem, TM R&D’s advanced analytics software in the FORCE platform measures and reports business performance metrics in real-time. This enables fast-paced businesses to make precise data-driven decisions to improve complex tasks scheduling of large fieldwork teams across geographies that in turn, significantly ease resource planning and operational costs. Commenting on the achievement, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, “In promoting growth mindsets through innovation and capacity-building, TM R&D has been consistently recognised for advancing tech solutions to meet fast-evolving digital needs of today’s competitive businesses. Our work in R&D is helping companies in the region adopt automation and digital solutions in improving workforce productivity and efficiency which translates into reducing cost of doing business.” “FORCE provides operational efficiencies and first-class customer experience by automating day-to-day tasks of large field teams. It proves to be an indispensable tool not only for its ability to automate functions of a workforce but also in enabling seamless execution of digital solutions. Today, FORCE can be effectively deployed in key sectors such as the Water and Utility Industry, IT Services, Public Services, Manufacturing, Hospitality and Plantation Management,” added Dr. Sharlene. The workforce management solution is designed to enable the adoption of digitalisation progressively within the organisation’s own growth strategy, allowing it to rapidly reap benefits with minimal costs. Dr. Sharlene concluded, “Winning this award inspires us to create smarter digital solutions in line with TM’s transformation towards becoming a human-centred TechCo and enabling a more Digital Malaysia.” For more information about TM R&D and its innovations, visit www.tmrnd.com.my or email your inquiry to business@tmrnd.com.my or follow them on LinkedIn (TM Research & Development) for more news and updates.
TM AND SINGTEL’S NXERA BREAK GROUND FOR SUSTAINABLE, HYPER-CONNECTED DATA CENTRE CAMPUS IN JOHOR
ISKANDAR PUTERI, 25 JULY 2024 – TM and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, held a groundbreaking ceremony for their data centre campus in Iskandar Puteri, Johor. The groundbreaking comes one month after the announcement for a joint venture to develop data centres in Malaysia and uplift Johor’s digital hub status. This 64MW state-of-the-art, sustainable, hyper-connected, AI-ready data centre campus reinforces Malaysia’s high quality digital infrastructure. It also supports the government's efforts to drive the digital economy and transform the country into a hub for industrial growth, AI development and innovation. Malaysia's Digital Minister YB Gobind Singh Deo; YB Lee Ting Han, Chairman, Johor State Investment, Trade, Consumer Affairs and Human Resources Committee; and Singapore's Senior Minister of State for Trade and Industry and Culture, Community and Youth Low Yen Ling graced the groundbreaking event as the Guests-of-Honour. Minister YB Gobind said, "This investment by TM and Nxera reinforces Malaysia's position as the digital hub in Southeast Asia, further advancing the nation's economic growth. Based on advance estimates, Malaysia's economy expanded 5.8% in the second quarter of 2024, and such investments are in line with projections that Malaysia's digital economy will contribute 25.5% to the nation's GDP by the end of the year. The relationship between TM and Nxera expands to Malaysia and Singapore, with both nations being a good case study of a productive working partnership between two ASEAN member states." YAB Dato Onn Hafiz Ghazi, Menteri Besar, Johor said, “TM-Nxera’s upcoming data centre campus, located right here in Iskandar Puteri, holds particular significance as one of the Johor-Singapore Special Economic Zone’s first investment projects. We welcome the comprehensive scope of their investment with respect to high quality infrastructure, sustainability as well as employment and skilling opportunities which supports our emphasis on talent development, green technology and renewable energy. This data centre campus will serve as a catalyst for economic growth and enable businesses to harness the power of cloud computing and AI. We hope this will set the stage to shape a vibrant business ecosystem where more high-tech and high-value content companies will be attracted to locate their operations within the special economic zone and give a further boost to Johor’s digital economy.” Senior Minister of State Low said, “Data centres are important enablers of our digital economy, powering our economy’s data-driven needs. As technology advances, robust, next-generation digital infrastructure like the TM-Nxera Data Centre will be essential to support AI advancements and foster value creation. Today’s groundbreaking marks a milestone in the deepening economic relations between Singapore and Malaysia, and I look forward to the outcomes we can achieve through close collaboration.” Amar Huzaimi Md Deris, TM’s Group CEO, said, “Today marks a pivotal milestone in our journey to becoming a digital powerhouse as we break ground on this cutting-edge AI-ready data centre. This facility exemplifies our commitment to fostering industry growth, driving innovation, and enhancing socio-economic development. With support from the Federal Government, and Johor state agencies and authorities, we are confident that this AI-ready data centre will equip businesses with unparalleled computing power, AI capabilities, and other cutting-edge technologies. We are excited to lead the way into a future where AI and data analytics drive transformative solutions, revolutionising industries and enriching both our nation and the world.” Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit, said, “As one of the largest investments in the Johor-Singapore Special Economic Zone, this state-of-the-art data centre campus is an integral part of our mission to empower digital economies and communities in the region while ensuring energy and water resources are deployed responsibly and efficiently. It expands our regional data centre platform’s strategic presence in this fast-growing Asia region. With Malaysia embracing AI to drive competitiveness and innovation, our campus will spur economic growth by helping companies leverage AIs and cloud computing to drive efficiencies and accelerate their business transformation. Our investment isn’t just about the campus, it is about bringing benefits to the local economy through digitalisation, developing local talent, creating employment opportunities and enhancing international connectivity. We would like to express our gratitude to the Johor State Executive Council, Invest Johor, Iskandar Regional Development Authority, Malaysia Digital Economy Corporation and Malaysian Investment Development Authority for their support.” Scheduled to begin commercial operations in 2026, this cloud-enabled Tier 3 data centre campus will use liquid cooling to handle higher power density AI workloads. The facility will be designed, built and certified to Leadership in Energy and Environmental Design (LEED) standards, incorporating energy and water-efficient solutions to optimise the use of resources. This underscores the joint venture's commitment to long-term sustainability goals. To support the new data centre campus, the joint venture plans to expand submarine cable connectivity, enabling a thriving and vibrant digital ecosystem. Located just 16 km from Singapore, the data centre campus will allow customers to seamlessly expand their infrastructure from the city state and the rest of the region. Further, the data centre can be scaled up to 200MW in response to market demand. In addition, apart from creation of new employment opportunities that is important for nation building, the joint venture will invest in building talent for the data centre industry by fostering collaborations between universities in Singapore and Malaysia. It aims to design comprehensive courses with specialised curriculum to provide students with well-rounded knowledge and the requisite skills to propel Malaysia’s growth aspirations. For communities and the region, this means superior country-to-country connectivity and a smarter, more resilient digital economy. As announced in Bursa, this joint venture is conditional upon receiving approval from TM shareholders in the upcoming EGM.
TM posts solid 3Q performance with growth across all segments, continuous growth In revenue and EBIT
3Q2022 Key Highlights (vs 3Q2021) Operating Revenue grew 12.7% to RM3.16 billion, from continuous growth across all customer segments EBIT grew 38.2% to RM604.8 million, from strong revenue growth and improved business cost efficiency PATAMI decreased 2.2% at RM 265.2 million, following higher tax charges including Cukai Makmur, and foreign exchange translation loss on borrowings CAPEX investment at 19.1% of revenue or RM603.7 million, focused primarily on fibre service growth and network expansion, includes enabling 5G network rollout On the back of a solid first nine months, TM is revising upwards its market guidance on revenue and profit growth Delivering another solid quarter in 2022, Telekom Malaysia Berhad (“TM” or “the Group”) continues to chart a steady growth trajectory with its third quarter ended 30 September 2022 as compared to the same period last year (YoY). The Group’s operating revenue increased by 12.7% to RM3.16 billion, from RM2.80 billion in 3Q2021, the highest revenue recorded in the last ten quarters. TM’s focus on strengthening its core business and operational efficiency proved solid and resilient, capturing continued growth against the backdrop of intensifying competition. Better business cost efficiency from prudent operational spending plus optimisation programmes contributed to a better Group’s Earnings Before Interest and Taxes (EBIT) reported at RM604.8 million, a 38.2% growth from RM437.5 million in 3Q last year. Profit After Tax and Non-controlling Interest (PATAMI) stood at RM265.2 million, decreased 2.2% from RM 271.3 million recorded last year, as a result of higher taxation pay out and foreign exchange translation loss on borrowings. Continuous investment for growth and improving the experience of customers has been a rallying point for TM. The Group invested CAPEX at 19.1% of revenue this quarter, amounting to RM603.7 million to meet customers’ demands through fibre expansion, network modernisation and technology upgrades. Unifi sustains growth momentum Unifi demonstrated a continuous growth trajectory and continues its leadership in fixed-mobile converged (FMC) solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue increase of 7.0% from RM1.31 billion to RM1.40 billion. Driven by aggressive sales, promotions and loyalty programmes for customers, Unifi grew its fixed broadband subscriber base close to 3 million. With 5G now made available, Unifi will leverage this equal playing field to strengthen its position as the preferred provider for FMC, providing the widest and fastest all-in-one solution to meet today’s digital lifestyle. Unifi has also expanded its digital content portfolio with more on-demand streaming apps, with Unifi TV on track to become the largest streaming platform in Malaysia by end of 2022, with more than 15 streaming apps onboard. Its most recent launches include MangoTV, one of China’s leading online video platforms and SIAR, a local channel featuring classic Malay movies. With approximately 400,000 MSME customers, Unifi Business’ digital solutions and programmes aim to accelerate their digital transformation and business growth. On top of connectivity, Unifi Business also unveiled new business solutions to support MSMEs digitisation through cloud adoption, eCommerce Hub, cybersecurity and digital marketing, and were created to be affordable for this segment. TM One turnaround continues TM One, the Group’s enterprise and government sector arm, recorded a 11.9% growth in revenue from RM796.9 million to RM891.9 million in 3Q2022, clocking in a solid performance in the quarter. Growth was from both enterprise and government sector segments driven by connectivity services and customer projects. TM One inked more collaborations with several organisations to enable their customers’ digitalisation and transformative plans. TM One’s 5G Sphere comprising a technology ecosystem of more than 35 partners was recently launched to deliver 5G-enabled solutions for industry leaders to accelerate growth and create a more sustainable business operation. Its Private 5G solutions leveraging on dedicated and reliable Private 5G network will also propel enterprise adoption of IoT and IR 4.0 technologies, machine learning and analytics that will spur the nation’s economic growth. TM Wholesale (TMW) supports the telco/technology growth in Malaysia & region TM Wholesale (TMW) recorded a stellar performance in 3Q2022, with revenue increasing by 26.0% from RM610.9 million to RM769.9 million, making it the biggest revenue growth contributor for the Group in the current quarter. This is mainly attributable to higher domestic data and international digital demands from hyperscalers and global carriers within the region. More than 5,400 cumulative 4G and 5G fibre backhaul sites were deployed to expand network coverage and accelerate digital implementation nationwide. TMW continues to support the industry’s demand for High-speed Broadband Access (HSBA), delivering a total of more than 670,000 ports for 5 local broadband providers. At the international front, TMW secured a North Asia digital provider and a US-based hyperscaler as its latest wholesale Data Centre customers in Iskandar Puteri Data Centre. TMW also became the preferred service provider for a US-based hyperscaler in providing a long-term International Data services, thus strengthening its position as Malaysia’s preferred network infrastructure provider and at the same time positioning our country as a digital hub within ASEAN. Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer “TM’s growth momentum is expected to continue for the rest of 2022 from our core business segments - Unifi, TM One and TM Wholesale. We shall continue to invest in our technology capabilities, new growth areas of FMC and digital solutions, and in building capacity and digital talents within TM; while staying focused on growing with our customers, as well as continuing our operations cost discipline.” “Competition in FMC and the digital space is intensifying. We are strengthening our mobile business with the right strategy and capabilities to take TM into an era of true convergence. Unifi introduced exciting bundled packages for consumers and MSMEs, while TM One brings together leading technology and smart solution partners to accelerate innovative use cases. TMW continues to deliver on its aspiration to position Malaysia as the digital hub for ASEAN via submarine cables and date centre offerings.” “2022 is indeed the year to build our commercial resiliency to face the anticipated headwinds in 2023 – easing of economic growth, high supply chain cost and more measured customer spending.” “As we evolve from a converged Telco into a human-centred TechCo, we continue to focus on executing our transformation programmes which has produced tangible results for our customers and stakeholders.”
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