07 Sep 2021
TM and Tata Communications join forces for IP Transit services in ASEAN
Telekom Malaysia Berhad (TM), the national connectivity and digital infrastructure provider through its global and wholesale arm, TM WHOLESALE and Tata Communications, a global digital ecosystem enabler’s wholly-owned subsidiary, Tata Communications International Pte Ltd., join forces to offer stable, high-speed and reliable connectivity in the ASEAN region and open access to global enterprises.
This collaboration will enable service providers, mobile network operators and internet service providers in the region to address their customers’ growing data connectivity needs by providing access to a global Tier 1 Internet Protocol (IP) network. This will help deliver reliable, stable Tier-1 IP Transit (IPT) service, an internet connectivity service that enables end-users to access all websites and content on the internet. This will further boost sectors such as e-commerce, online entertainment, retail, online banking and delivery services that have accelerated in recent times.
As part of this arrangement, Tata Communications expands its IPT service coverage leveraging TM’s data centre, extensive connectivity and network infrastructure in Malaysia. This collaboration will also enable Tata Communications to optimise TM’s reachability within the ASEAN region through terrestrial networks and submarine cables to the neighbouring countries. The submarine cables include the Malaysia-Cambodia-Thailand submarine cable for connectivity to Indochina and, Nusantara Gateway submarine cable for connectivity to Indonesia.
At the same time, TM will benefit from Tata Communications global Tier-1 IP network to serve customers in more than 190 countries and territories hence further extending TM’s IP transit coverage and enhances its regional TMiX offering.
Commenting on the collaboration, Amar Huzaimi Md Deris, Executive Vice President of TM WHOLESALE, stated, “We are delighted to work with a renowned global player like Tata Communications, to fulfil our role as the digital infrastructure accelerator in Malaysia. This is part of our effort to enhance our internet service performance with expanded global reach for service providers in Malaysia and neighbouring countries to meet the growing IP networks requirements. The collaboration underscores our commitment to our customers for delivering world class network service, brings us one step further to achieve our aspiration as the trusted digital hub in the ASEAN region. It also signifies our commitment to support the Malaysia Digital Economy Blueprint (MyDIGITAL) initiative towards enabling Digital Malaysia.”
Sumeet Walia, Chief Sales and Marketing Officer, Tata Communications, said, “The service provider ecosystem across the ASEAN region will benefit from our joining forces with TM and enabling access to a Tier-1 internet provider transit connectivity that provides scale and a fillip to boosting the economy. By offering high-capacity and low-latency IP transit services to and from Malaysia for both our customers, we bring forth synergies for a more robust, secure and flexible IP platform.”
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TM joins SK Telecom to Pioneer Multi-Access Edge Computing in Malaysia
SEOUL, 6 September 2023 – Telekom Malaysia Berhad (TM) and SK Telecom today inked a Memorandum of Understanding (“MoU”) to jointly develop the Multi-Access Edge Computing (MEC) business arrangement in Malaysia. This will pave the way for the business to be pioneered and provisioned in Malaysia. The signing took place at SK Telecom’s headquarters in Seoul in the presence of YB Fahmi Fadzil, Minister of Communications and Digital, Malaysia who had just arrived in South Korea for a working visit. TM was represented by Khairul Liza Ibrahim, TM Global’s covering Executive Vice President, while signing on behalf of SK Telecom was its Vice President and Head of Enterprise CIC of SKT, Kyeong Deog Kim. “I am happy to have witnessed the MoU signing between TM and SK Telecom as there are many opportunities that can be gained from such close cooperation and collaboration. I believe this MoU is a step in the right direction,” said Fahmi. Khairul Liza said, “TM remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN. Our next step is to provide the means to empower all our customers in Malaysia and the region with multi-access edge computing from all our data centres around the country. Through this collaboration with SK Telecom, TM is stepping up its game to accelerate innovation for the nation’s progress towards a Digital Malaysia.” “Through collaboration with TM, we have once again confirmed that striving to provide faster and more stable services to customers through multi-access edge computing is a common interest of global telcos,” said Kim Kyeong-deog. “As we have been working actively to create a 5G ecosystem through the development of technology standards and use cases, we will put our best efforts so that our collaboration with TM contributes to creating a better communication environment in Malaysia.”
TM Launches New HQ And Campus To Promote Collaboration And Foster Human-Centred Innovation
Further complementing its transformation journey towards becoming a human-centred TechCo, TM is pleased to announce the launch of its new HQ and campus in conjunction with its Hari Raya event for employees. Located in Cyberjaya, TM Campus marks a significant milestone for TM as it represents the company's commitment to creating an innovative space that drives agility, flexibility and efficiency through digital collaboration and hybrid work environment. TM is set to drive higher productivity while instilling a sense of pride among Warga TM through a stimulating work environment and a hybrid policy of three (3) days at the office and two (2) days working from anywhere. The campus houses not only the new TM HQ, but also TM Innovation Hub, TM Network Intelligence Centre and TM Core Data Centre. The campus provides open office spaces, technology infrastructure and digital tools, as well as dedicated areas for collaboration, empowering employees to deliver innovative solutions for customers. It also features a sustainable eco-friendly design with green spaces and an abundance of natural light to create a healthy and inspiring workspace atmosphere that employees can be proud of. TM Campus was officially launched today by Dato’ Imri Mokhtar, Group Chief Executive Officer, witnessed by the senior leadership team and Warga TM. “We are thrilled to launch the new campus as it is a testament of our commitment to propel innovation among our employees, customers and partners. The campus features an open space concept, equipped with advanced technology infrastructure to facilitate Warga TM to co-create digital platforms and smart solutions,” said Dato’ Imri. “We are changing our way of working and this campus will be the catalyst. Complemented by the use of various technologies and digital tools such as robotics process automation (RPA), artificial intelligence (AI), analytics and remote working tools, it will bring out the best of our people, while enhancing their well-being at the same time,” he further added. To support this evolution, TM provides various on-demand learning platforms and technology training opportunities to complement its commitment towards human-centred innovation. "With the spirit of collaboration and mutual exchange of ideas, we will continue to develop ourselves for the benefit of our customers and other stakeholders," Dato’ Imri concluded. This is also in line with TM’s new brand promise, ‘Your Next is Now’, which demonstrates how technology is harnessed to empower people to drive change, enabling them to realise their aspirations, whether to scale big ideas, build new businesses, or take better care of the planet. Some of these innovations were also showcased by TM during the launch event. TM Digital Workplace features the benefits of a hybrid work environment, On-demand Learning and Professional Development Platforms and Employees Self-Service, for greater efficiency among Warga TM. For our customers, TM One Smart Solutions showcase features Smart Healthcare, Smart Industries & Analytics, and Smart City. This is a significant moment for the Group, and it marks a new chapter in its journey towards becoming a human-centred TechCo that creates value for its stakeholders. With its innovative features, human-centred design and commitment to diversity and inclusion, this new facility is poised to become a hub for innovation and creativity.
TM reports strong 3Q2020 performance amidst challenging environment
Encouraging QoQ revenue growth across all product lines 3Q2020 QoQ Key Financial and Operational Highlights (All comparisons refer to the second quarter of 2020 (Quarter-on-Quarter (QoQ) comparison), except as noted): Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020. Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million. The total capital expenditure (capex) for 3Q2020 stood at 14.9% of revenue or RM400.0 million. unifi: Continues convergence leadership with growth in broadband and mobile; highest convergence penetration of TM households at 58%. TM ONE: Strengthened position as the digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally. Addressing the digital divide: Remain committed to increasing connectivity reach via Jalinan Digital Negara (JENDELA) and accelerating the digital economy with recently announced Malaysia Digital Economy Corporation (MDEC) collaboration. Strong Business Performance for 3Q2020 Despite these unprecedented times, TM Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services. Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, from the Group's continued momentum from its cost optimisation programmes. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million. In 3Q2020, the company invested 14.9% of revenue in capex amounting to RM400.0 million - in line with guidance - as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system. Imri Mokhtar, Group Chief Executive Officer, TM, commenting on the results: "We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our 'Warga TM' while continuously delivering connectivity and solutions excellence to our broad customer base." "We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm. On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings. We look forward to more collaborations with strategic partners and customers towards establishing a solid foundation for a more Digital Malaysia," Imri concluded. Operational Review: Maintaining Business Momentum TM delivered another quarter of robust performance, driven by its agility to mitigate the impact of the pandemic on Group businesses and operations; leveraging on new avenues for growth in the 'new normal' whilst adapting to challenges. unifi: Continues convergence leadership with growth in broadband and mobile Achieved the highest convergence penetration at 58% of TM households. unifi customer base grew 6.3% to 1.65 million; total broadband customer base grew 2% to 2.26 million during the quarter. Helped empower Small and Media Enterprises (SMEs) with relevant tools and knowledge to grow their businesses and embrace digitalisation with the launch of cari@unifi and eBiz Pack, unifi Business Club (uBC) collaboration with Lalamove and live webinars such as Reboot and Sembang Bisnes. Partnered with Funding Society Malaysia to provide business financing solutions for Micro SMEs (MSMEs) utilising Yellow Pages' digital platform. unifi Mobile extended access to the daily free 1GB Productivity Internet offer to 24 hours, until 31 December 2020, to support Malaysian's connectivity needs in Conditional Movement Control Order (CMCO). TM ONE: Strengthened our position as digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings Scaled up the full capabilities of Cloud α (Cloud Alpha) suite of services with full data residency, locality and sovereignty. Appointed as the technology partner of the Department of Statistics Malaysia (DOSM) to develop and maintain the Population and Housing Census of Malaysia 2020 (e-Census) platform. Continue to support state governments and local city councils to establish future-ready smart cities and smart homes via its TM ONE Smart City Solution enabled by the Internet of Things (IoT) and various smart solutions. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally Domestic Secured a new contract with a domestic mobile player for cross ocean connectivity, backhaul connectivity solutions and broadband access capacity upgrade. New backhaul connectivity deal with a domestic mobile player for new backhaul services. International Expansion of content delivery services with an Asian-based OTT player. Secured a deal with an Asian-based OTT player for connectivity solution within Asia Pacific, and two (2) new long term data connectivity deals with global carriers. Additional voice business deals with global service providers worldwide. TM Network remained stable throughout CMCO as a result of continuous network optimisation. This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home. Supporting the nation's digital agenda and addressing the digital divide: Remain committed to increasing connectivity reach via JENDELA and accelerating the digital economy with the recently announced MDEC collaboration. Prospects for the Current Financial Year Ending 31 December 2020 Following the Covid-19 pandemic, Bank Negara Malaysia has revised Malaysia's annual gross domestic product (GDP) forecast to contract between 3.5% to 5.5%[1], against 4.3% growth in 2019. Uncertainty from the most recent wave of the pandemic from October onwards is expected to bring about further revision to these numbers. As the nation faces this adversity, relying even more on the internet and digital connectivity for work and studies, TM continues to serve as an essential service provider, ensuring stable network performance for the entire nation via both our retail and wholesale fronts. The Government's introduction of JENDELA in September 2020 as well as the RM7.4 billion allocations in the recent National Budget to deliver upgraded broadband services for year 2021 and 2022 will serve as a platform to accelerate Malaysia's digital connectivity through wider deployment of mobile, fibre and fixed wireless access. This will pave the way for 5G under the 12th Malaysia Plan (2021–2025). TM is at the forefront in collaborating with other service providers, enabling and delivering JENDELA. We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today. [1] Sourced from Bank Negara Malaysia, 14 August 2020
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