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 and Ministry of Education establish synergy to drive digital transformation in education
TM Becomes the Strategic Partner for Digital Education Transformation Initiative and Launches Special unifi Mobile Plan, Exclusively for Teachers Telekom Malaysia Berhad (TM) and Ministry of Education Malaysia (MOE) today embarked on a journey to establish working synergies on Digital Education Transformation initiative, in line with the Government’s Transformasi Nasional 2050 (TN50) plan which is set to empower Malaysia’s education system through innovation and digitalisation. This collaboration marks a steadfast effort via strategic partnership between TM and MOE to ensure effective delivery of the Digital Education Transformation programme. The collaboration will focus on four (4) main pillars namely 21st Century Teaching & Learning, Enterprise Architecture, Education Analytics and other Value Added services suitable for education. The ceremony was graced by YB Dato’ Seri Mahdzir Khalid, Minister of Education Malaysia together with Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman, TM, together with Datuk Dr. Amin Senin, Education Director General of MOE and Datuk Bazlan Osman, Deputy Group Chief Executive Officer, TM. To commemorate this collaboration, TM also introduced a special unifi Mobile plan exclusively for teachers, called “JASA Pack”. The plan which is offered at only RM59 a month for unlimited data, calls and SMS. Commenting on the collaboration, Tan Sri Dato’ Seri Dr. Sulaiman Mahbob said, “As the key enabler for the national communications infrastructure, and the one and only capable of providing fully integrated telecommunications, ICT and digital services, TM is proud to play its role as the strategic partner in establishing the ecosystem for MOE digital transformation programme. We really look forward to work with MOE to accelerate the delivery of innovative digital services and solutions for the education sector towards building a knowledge-based workforce for the country.” “Meanwhile, as the one and only brand in Malaysia that offers truly seamless Internet connectivity to Malaysians nationwide, we are excited to introduce unifi Mobile “JASA Pack” plan for teachers, offering our teachers a converged digital lifestyle. The exclusive plan for teachers will be available nationwide for all teachers to enjoy unlimited data, calls and SMS via unifi Mobile at an affordable price for their daily communication needs, true to our promise, “Life Made Easier”,” he added. The collaboration will enable MOE to boost and accelerate its digital transformation journey as outlined in the national education blueprint 2013-2025 (Wave Two). This means students, teachers as well as MOE administrators can look forward to a seamless transformation of digital experience. These digital experience include high speed broadband connectivity, interactive smartboard, smart devices, as well as the methodology of teaching and learning the 21st century way. The transformation will also digitise the students tracking and attendance system for the safety of the students, whereby all parents and teachers will have real-time visibility on the students’ attendance. The transformation will also enable parents to choose cashless payment options at school. Ultimately, all data and information from all these solutions will be integrated and combined into one single platform to provide Big Data analytics.
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.
Sultan Perak launches Telegraph Museum in Taiping, Perak
Telekom Malaysia Berhad (TM) via its foundation, Yayasan Telekom Malaysia (YTM), continues its role to preserve arts, culture and national heritage when the Company today officially launched its second museum - Telegraph Museum - the first of its kind in the country, in Taiping, Perak. The launch of the Telegraph Museum was graced by HRH the Sultan Perak, Sultan Nazrin Muizzuddin Shah. Also present at the launch were HRH Sultanah of Perak, Tuanku Zara Salim, Raja Muda Perak, Raja Jaafar Raja Muda Musa and Raja Di Hilir Perak Raja Iskandar Dzulkarnain together with Tan Sri Dato’ Seri Dr Sulaiman Mahbob, Chairman, TM who also the Chairman of YTM, Datuk Bazlan Osman, Acting Group Chief Executive Officer, TM and Abd Hamid Hashim, Director of YTM. The launch of Telegraph Museum is a historical event for YTM after the opening of the Telekom Museum or also known as Muzium Telekomunikasi Negara in Kuala Lumpur in 1994. Tan Sri Sulaiman in his speech said, “The role of the museum has changed over the years, expanding its focus beyond presenting things of the past to include creating a connection with the present and a glimpse into the future. Telegraph Museum is a space that provides us with the knowledge on telegraph’s history since 18th century. The Post & Telegraph Department (P&T) has played an important role towards the development of National’s telecommunication system and TM through YTM has the responsibility to maintain and preserve our nation’s heritage for future generation.” “The establishment of the Telegraph Museum is set to be the latest tourist attraction in Perak specifically and Malaysia, generally. The museum features the history of telegraph communications system including its maiden breakthrough here and how the technology has contributed to the development of the nation. We hope that the both museums; Telekom Museum and Telegraph Museum will be the places for students, researchers and the communities within and outside the country to deepen their understanding on the country’s telecommunication heritage and telegraph communications system,” he added. YTM’s efforts in establishing this Telegraph Museum is intended to restore and conserve the historic building, built in 1883 that housed the first Post Office & Telegraph (P&T) Office in Malaya, which then also became the first office of Telekom Malaysia. This 135 years old Telegraph office represents national identity and the highest historical moment in the earliest telecommunications history in the country. The two storey building has also been used as Jabatan Telekom Club Office and Telekom Malaysia Technical Operations Office before conservation works of the heritage building by maintaining its original shape during the 18th century. Among the interesting artifacts being showcased at the Telegraph Museum is the 1870s submarine cable which was the earliest cable in the world that uses insulation materials from the Gutta Percha tree extract. Visitors can also take a tour around the museum to see the telegraph transmitor and reception tools as well as other peripherals related to telegraph communications system back then while appreciating the history of telegraph and the benefits it brought to the nation until the telegram service was terminated in 2012. Malaysian citizens can purchase the entrance tickets at RM8 for adults and RM5 for children while for non-Malaysians, the ticket price is RM15 per person. In conjunction with the launch of the Telegraph Museum, TM also collaborated with Pos Malaysia in issuing a limited edition stamp collection kit that features the Telegraph Museum which can be purchased at RM50.80 per set from 98 Pos Malaysia Offices nationwide. With the launch of this second TM museum, TM has proven their commitment in conserving this historic heritage. The Company believes that these initiatives by YTM such as the establishment of the Telekom Museum and the Telegraph Museum will greatly benefit in national development, in line with our unique role as a partner in nation building.
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